International Busness---SWOT Anlysis GEELY

A SWOT anlysis is a method used to evalueate the strength, weakness, opportunities and threats.



Strengths：characteristics of the business p project that give it an advantage over others.
weeknesses: caracteristics that place the businss or project at a disadbantage relative to others.
opportunites: elements that the project could exploit to its adantage.
Threats: elements in the environment that could cause trouble for the business or project.




Internal: strengths; weeknesses
External; opportunities; threats






EXAMPLE:


The SWOT anlysis-GEELY





Strengths：
The GEElY automobile is localed in zhejiang. The economy is developed, the transportation is convenient, there are many excellent talents.
In hangzhou, zhejiang province, there are Geely automobile technology center and Geely automobile research insititute. It has strong deveipment abilities. Geely has a broad product line, it can meet the needs of different cosumers. Geely automobile's production cost is low, it is a significant cost advantage. It will produce  a strongr competitive advantage.




Weakness:
Due to China's automobile indstry started relatively late, the quality of Geely automobile product is poor, it can not compete with the foreign brand. Geely automobl sales network generally fous on the country's second and third tier cities. And although Geely automobile has launched many models, the product upfate speed is too slow.


Opportunities:
Nowadays, the government gives more and more support to automobil brand, a series of encouraging policies to spped up the development of Chinese automobile. In addtion, China'seconomy rapid growth in recent years,the buy level grdually increase.
In 2010, Geely purchased the shares of the ford automobile company's Volvo car. It increases the awareness of Geely brand.

Threats:
Because China has a large car market, the domestic automobile industry competition is very strong. In addtion to the international energy prices, people are growing t the requirement of environmental protection, the structure of the domestic automobile industry inevitabe adjustment to Geely automobile bring great threat.

organization context part2

This week, I will talk about the Macro Environment, PESTLE Analysis.

PESTLE: (Political; Economic;Social; Technogical; Legal; Environmental)

Political

Political factors that influence business include:

1.The political changes at local, reginal, national, EU and international

2. The political integration of countries affect the business. For example: the grownth of the EU and lowering of trade bariers.

3.Changes in legislation For example: taxation and employmemt law, visas

4. Privatisation/Deregulation Policies

Economic

The economic factors includes the consumer activity- confidence, spending patterns, willingness to spend; Interest Rates; Inflation Rates; Exchange Rates; Unemployment; Fixed an variable business costs; Energy costs; State Investment; Effects of changes in labour and product market.

social-culture

People's lifestyle has changed in recent years, this suitation will affect the business.For example:

nowadays, people prefer the bicycles so that the car industries will loss many profits. There are many factors like this influnce the business: Shifts in value in culture;Changes in attitudes to work and leisure; Education and health; Deomographics eg, birth rate, life expectancy; Distribution of income.

Technlogical



1. Outcomes of changes in th technology that is used to design, produce or distribute goods or services

2. Production methods can go out of date quickly

3. Communication methods may be inefficient with IT developmenta

4. Government and EU investment policy

5.Indenrified new research initatives

Legal

The legal factors include the change in Law; Competition Law and government policy; Emplyment and Safety law; product safety issues; Laws to protect society and environment laws.

Environmental

Environmental factors include ecological and environmental aspects such as weather, climate changes, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

Example: Analysis the airline Indusry

 

• Political - Taxes that they get charged in different countries for landing, fuel taxation etc
• Economic -  Oil prices increasing, is this affecting their profits from increased fuel costs
•     Social - People are using more airlines to fly to their favourite holiday destinations because of the economic growth and therefore market has expanded and new opportunities for tourism have opened in previously frequently visited countries. 
•  Technological - high technology -cheaper
• Legal - Different legalities of different countries 
• Environment - The CO2 emission for 2 people traditional driving vacation will be around 20 Kg of CO2 which when compared with the emission caused by an airline would be around 1.4 tons. (add ref). There are reports that have warned that failure to limit greenhouse gases would lead to disastrous consequences. European Union will most probably imply tax aviation fuel on airline industry for their contributions to global warming.

 

 

 

 

 

 

 

organization context part1

What is organization context?

The organization context is the set of forces surrounding an organization that have the potential to affect the way  it operates and its access to scarce resources.

The organization context can divided into 3 parts:
1. Internal
2. Competitive (micro)
3. External    (macro)

Today, I will analysis the internal environment.


Porter's Five Forces

Porter's theory on competitiveness is that it is based on 5 factors.

1.Supplier Power
2.Buyer Power
3.Competitive Rivalry
4.Threat of Substitution
5.Threat of New Entry



Example:
This is Porter's five forces analysis example for a car industry.

1.Threat of new entry (very weak)

• Large amount of capital required
• Few legal barriers protect existing companies from new entrants
• New entrant could easily access suppliers and distributors
• Governments often protect their home markets by introducing high import taxes.

2.Buyer power (strong)

• There are many buyers
• Buyers do not threaten backward integration
• Buyers can easily choose alternative car brand
• It does not cost much for buyers to switch to another brand of vehicles or to start using other type of transportation

3.Competitive rivalry (very strong)

• Moderate number of competitors
• Customers are loyal to their brands 
• Industry is very large but matured
• There is moderate threat of being acquired by a competitor

4.Supplier power (weak)

• Large number of suppliers
• Materials widely accessible
• Suppliers do not pose any threat of forward integration
• Some suppliers are large but the most if them are pretty small

5.Threat of substitutes (weak)

• There are many alternative types of transportation, such as bicycles, motorcycles, trains, buses or planes
• Substitutes can rarely offer the same convenience
• Alternative types of transportation almost always cost less and sometimes are more environment friendly

Management Theory

This week,our topic is the management theory.Before talk about the theory, we must think about that why do we need to study this?

Firstly, the theory represents a more complex reality which allows us to examine a problem from different perspectives. Secondly, it is difficult to understand this world without theory, it helps us to understand the process of management.
In addition, the theory provides a basis for action.

The management theory can divided into four main schools:

Classical   Human Relations   Systems    Contingency

Classical: Emphasis on purpose, formal structure, hierarchy of management, technical requirements and common principles of organisation.

Human Relations: Attention to social factors at work, groups, leadership. the informal organisation, and the behavior of people.

Systems: The integration of the the classical and human relations approaches, importance of the socio technical system. The organisation within its external environment.

Contingency: No one beat design of organisation. Form of structure, management, and success of the organisation dependent upon a range of situation variables.




Scientific Management

   ·       Scientific management, also called Taylorism, was a theory of management that analyzed and synthesized workflows. Its main objective was improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management.


Bureaucratic Management :- (1930-1950)

   ·     Max Weber

Bureaucratic management is a form of management that is based on clearly defined hierarchical levels. It is a formal system that specifies the role of each employee in an organisation. Bureaucratic management is aimed at improving effectiveness and efficiency in an organisation.