INTERNATIONALLY TRADING ORGANISATION 'GLOBALISED'

Business Environment



Table of Contents

Executive Summary4

Introduction5

Background6

PEST analysis6

Political Opportunities6

Environmental Opportunities7

Social7

Technological:Opportunities7

Porter's 5 Forces Analysis8

Threat of New Entrants8

SWOT Analysis8

Strengths8

Weaknesses8

Opportunities8

Threats8

Business strategy9

Recommendations19

Suggestions20

References22

Business Environment

Executive Summary

HP and its future lies in technological progress. It was somewhat simpler for HP to outperform competitors because the pace of new innovations was slower decades before then it is now in the 21st century. It is thus important for HP to continue monitoring changes in technology and react decisively or it may be left behindExternal information represents the information about customers, suppliers, but also the information about competition, about new technologies, basically every information from the surrounding of a firm. Particularly nowadays this information is absolutely vital for further decision-making. It is important to unite acquired information from external environment with the knowledge of workers who work in a given field and are able to make decisions on the basis of analyses leading to keeping and improving the position of a company. The quality and the way of getting internal information is fully dependent on the quality of firm's information system and of course on a human factor. Firm's information system should be fully integrated and should respect firm's processes of different functional fields. It cannot be created without clearly defined global and information strategy.

Business Environment

Introduction

HP is one of the biggest businesses in the world but regardless of its success and multinational reach, it is still subject to forces after its control. Hence, in order to properly fight back its empire and plan for development, administration of HP have to understand the way the external world works, where it is progressing in the direction of and how it all sways HP. Three broad and distinct classes form the external environment of HP and these are the general, industry and competitor environments. The more applicable and important aspects of each will be delved into for the reasons of this analysis.

Why the company environment picked is global

HP's global position represents an multi-ethnic workforce and this exposes it to distinct worth systems. If HP were to enforce its thriving Silicon Valley mindset on a subsidiary in a distinct continent, it might not be adept to observe the same presentation from employees. Even though there are signals of increased receptiveness to American heritage from other nations, a drastic change to centuries of heritage will not be expected. Moreover, as mentioned in the case, the HP-Compaq amalgamation will furthermore raise organisational culture issues and it will be a perplexing method in optimising synergy in two geographically large companies.

Background

For firms, one way of dealing with the pressure of highly competitive environments and short-life cycle of especially high-tech products is to collaborate with other firms for the development and manufacturing of new products. By doing so, risk and rewards are spread among two or more companies. Essential for the innovation process is sharing ideas, among often 'rivalry' business firms, on the development of new products. This type of collaboration is in contrast to what was common practice in the early days of ...