PESTEL analysis of the USA

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The United States of America (USA) is commonly known as the United States (U.S.). It is an economic and political superpower. In terms of nominal GDP, it is the largest economy in the world. The USA contributed immensely to the founding and development of institutions such as the United Nations, World Bank, and international Monetary Fund. It is a highly developed country with a great reputation for its infrastructural and technological brilliance. PESTEL analysis of the USA This PESTEL analysis of the USA aims to address some of the political, […]

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Business ethics – Definition and meaning

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Last updated: February 2017 What is business ethics? Ethics is a system of moral principles that govern the conduct of a person. According to Hill (2012), business ethics are the accepted principles of right or wrong that govern the conduct of business people. High standards of quality, transparency, and integrity are vital to the success of any profession. Therefore, organisations need to have a set of principles that guide them on how to behave as business entities. For example, American Marketing Association (AMA) has its own code of ethics that […]

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PESTEL analysis and its application

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Last updated: December 2016 What is PESTEL analysis? When a company decides to enter a new market, a PESTEL analysis of the market is indeed needed to determine the right strategy to enter. PESTEL is an extended version of ETPS model which was developed by Harvard professor Francis Aguilar. ETPS was published in Francis’ book ‘Scanning the Business Environment’ in 1967. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal. Application of PESTEL analysis PESTEL requires a deep understanding of the macro-environment in which a business operates. Factors those […]

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What is international marketing?

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International marketing is a very important subject for students as well as managers. It is a topic which makes us think beyond our national borders. According to Doole and Lowe (2001), international marketing, at its simplest level, involves a firm in making one or more marketing mix decisions across national boundaries. At its most complex level, it involves the firm in establishing manufacturing facilities overseas and coordinating marketing strategies across the globe. Why international marketing? There are a number of reasons why a company may decide to go for international […]

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What are the driving forces behind globalisation?

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The production of goods and services has increased around the world due to a number of factors, particularly  globalisation. Many companies have gone beyond their national borders to have operations, even in remote corners of the world. McDonald’s, Subway, Kellogg’s, Walmart, Tesco, Coca Cola, and Pepsi are some of the best examples in this regard. Globalisation has increased the production of goods and services throughout the world. So, what is driving globalisation? There are a number of factors which requires attention. Improved transportation,  cultural exchange, low barriers to trade, and […]

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Merger & Acquisition

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Last updated June 2016 Merger and acquisition are usually used by companies in order to bring about quick growth. According to Armstrong (2014) global mergers and acquisitions activity reached $3.5 trillion (£2.25 trillion) in 2014. However, merger and acquisition are high-risk strategies. Definition of merger and acquisition Both merger and acquisition are heavily used in academia and in corporate world. Sometimes, these two terms are used interchangeably. However, there are some differences which exist between the two. A merger is the combination of two previously separate organisations, typically as more or less […]

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Foreign Direct Investment

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There is no doubt that countries need investment for economic growth and prosperity. Therefore, we see governments around the world attempting to provide various incentives to foreign investors. This article touches briefly on Foreign Direct Investment (FDI) and identifies some popular destinations for FDI. Definition of FDI According to Hill (2012) foreign direct investment (FDI) takes place when a company invests directly in facilities to manufacture or market a product in an overseas country. According to the U.S. Department of Commerce (cited in Hill, 2012), FDI takes place when a […]

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What is globalisation?

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Last updated June 2016 Globalisation is a widely discussed topic. It has raised interest in academic, political and social circles over the years. Many businesses benefit from globalisation, while public resentment towards globalisation has also been seen in some countries. Globalisation has created numerous opportunities for people and business. However, it has its own challenges as well. Academics have defined globalisation in different ways considering different perspectives. According to Stonehouse et al (2004), globalization refers to increasingly global nature of markets, the tendency for transnational businesses to configure their business […]

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