Essays on International Business Project - BAT Company Case Study

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The paper "International Business Project - BAT Company " is an outstanding example of a business case study. The business  organization depends on its internal aspects or components for efficient and effective operations. The key internal elements include; physical facilities and equipment, financial stability, human resources, production and operations, and market capability. When all the above elements are evaluated and analysed the results are the strengths and weaknesses of a company. Strength can be defined as a particular skill or distinctive competence that a company can do relatively better than other companies especially its competitors and which the organizations have and contribute to the achievements of the stated goals or objectives.

BAT Company has a strong brand name which helps the organization to have a competitive advantage over the other tobacco-producing companies like the Marlboro Company which is the BAT main competitor. A weakness can be defined as any aspect of the company which may hinder the company from attaining its objectives or goals. Usually, it covers the firm’ s assets, resources, and capabilities. BAT culture of doing things and reputation has been questioned by many people in the world.

There has been an argument that the products that the company is producing are harmful to human health, a development which has reduced their market share. External factors may include; economic, technological, competition, political/legal, and social-cultural factors. (Anthony, 1998) However, the external environment of a company may be explicitly explained when opportunities and threats of the firm are considered. An opportunity in this aspect can be defined as any event, development, or a feature of the external environment which creates conditions that are favorable or advantageous to the business in relation to a particular objective or set of goals to be attained.

For example, there are great emerging markets in Africa, Asia, and Australia among other countries for BAT to explore. There is great investment demand in these places that BAT Company can maximize on it. A threat can be referred to as an environmental development or event which will present problems or challenges likely to hinder the achievement of organizational objectives, for example, competition, high-interest rates, government legislations, declining real income among others.

BAT Company is now facing stiff competition from its main rivals like the Marlboro Company, thus there has been a drop in the market share thus a reduction of their profits. The simple analysis involves understanding the organization’ s political, economic, social and technological environments with reference to those who do business with the company. (Rob, 2005) Political factors may have a direct and indirect effect on the performance of the company. Some of the decisions made by the federal government of the U. S have impacted negatively on the operations of some companies like Microsoft Company.

Take for example legal suits brought against in 2001 and the decision to minimize the production and marketing of high-performance computers to countries believed to be a threat to U. S security. This has had huge implications for the company. Economical factors affect every business. Fiscal policy rates, interest rate policy, currency exchange rates, consumer factors, etc. It is possible that the U. S climate of the economy dictates how the consumer behaves in society. If an economy is booming, recessing or recovering, the confidence of the consumer will automatically change.

Social factors are forces within the society such as media, family and friends have affected the way Manxman has sold its products. Most of the customers have been misled to believe that products made from America are of high quality. This means that companies such as Microsoft have benefited heavily. Social factors affect our attitude, opinions and interests on the way we view products from certain perspectives. Technological factors like the internet; for example has assisted companies such as Microsoft to meet new markets and extend its global outreach.

Businesses should keep in touch with changing technology and modernization in this ever-changing world. Legal factors reflect the way the company operates in terms of operating rules of law. Microsoft Company is engaged in legal business practice of marketing electrical products which are permitted by law. (Cullen and Parboteeah, 2005)

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