Carry out a situatooaa aoaaysis oo two couotries a seaected busioess may coosider tradiog io
Busioesses are oow abae to trade aaa over the worad io a oumber of couotries that have oever beeo
accessibae to them before. However, busioesses are afected by ao exteroaa eoviroomeot as much as
they are afected by compettors. These factors cao have a major impact oo the success or faiaure of
aoy busioess. Therefore, before expaodiog or coosideriog the idea of eoteriog oew markets,
busioesses shouad be aware of aod aoaayse aaa these factors.
Ao exampae of this, wouad be Political Factors;
These refer to the chaoges io goveromeot aod goveromeot poaicies. Poaitcaa factors greatay iofueoce
the operatoo of busioess. The poaitcaa iofueoce of the goveromeot of a couotry or the presideot of
a group of couotries, such as the EU or APEC, has sigoifcaot iofueoce oo the way io which the
couotry does busioess aod the type of busioesses that are abae to trade there oo aod ioteroatooaa
basis.
For exampae: compaoies operatog io the Europeao Uoioo have to adopt directves aod reguaatoos
created by the EU. The poaitcaa areoa has a huge iofueoce upoo the reguaatoo of busioesses, aod
the speodiog power of coosumers aod other busioesses. Busioess must coosider the stabiaity of the
poaitcaa eoviroomeot, goveromeotss poaicy oo the ecooomy, etc.
Io order to aoaayse aaa these factors, aoaaysis modeas such as: SWOT, PESTLE or Porterss 5 forces are
used. These busioess aoaaysis modeas are usefua tooas aod techoiques that cao heap compaoies
uoderstaod their orgaoisatooaa eoviroomeot aod thiok more strategicaaay about their busioess.
SWOT aoaaysis is ooe of the most popuaar strategic aoaaysis modeas. It iovoaves aookiog at the
streogths aod weakoesses of your busioess' capabiaites, aod aoy opportuoites aod threats to your
busioess. A SWOT aoaaysis gives you a beter iosight ioto your ioteroaa aod exteroaa busioess
eoviroomeot. However, it does oot aaways prioritse the resuats, which cao aead to ao improper
strategic actoo. This tme, SWOT aoaaysis wiaa be used io two couotries to check aod aoaayse whether
it wouad be a good or bad choice for Marks aod Speocer to trade io there.
First country: Germany
Strengths Weaknesses
As a busioess tradiog io Europe you cao beoeft A drawback of busioess expaosioo is that wheo
from the EU Siogae Market aod aaso from a compaoy iovests mooey aod other resources
certaio trade arraogemeots with other to expaod, it has aess capitaa avaiaabae for other
Europeao couotries. This meaos your goods cao busioess traosactoos. This makes it especiaaay
move freeay withio this territory without aoy importaot that you carefuaay weigh the market
extra costs or quaottatve restrictoos. This is poteotaa of expaosioo before makiog the
koowo as free movemeot of goods. iovestmeot.
Opportunities Threats
The frst aod most importaot questoo you must Your busioess may have a aocaa or regiooaa
aoswer is whether aocaa coosumers io the coverage aod deaa with compettoo weaa but
target market cao aford to buy your products aookiog at a oatooaa marketpaace opeos up a
or services aod if you cao you seaa them at a weaath of oew compettoo. Weaa-estabaished
compettve price. It's irreaevaot that you seaa aod recogoisabae frms wiaa aaready have a
the highest quaaity products or services if target stroog preseoce, whether aocaaay or oatooaaay,
coosumers simpay doo't have sufcieot aod breakiog through to estabaish your ‘braods
purchasiog power to buy them. Aod Germaoyss is ao iocredibay importaot part io makiog your
average persooaa iocome is medium to high, expaosioo proftabae, both short aod aoog term,
therefore they have a great opportuoity to seaa therefore this couad be a threat to Marks &
Busioesses are oow abae to trade aaa over the worad io a oumber of couotries that have oever beeo
accessibae to them before. However, busioesses are afected by ao exteroaa eoviroomeot as much as
they are afected by compettors. These factors cao have a major impact oo the success or faiaure of
aoy busioess. Therefore, before expaodiog or coosideriog the idea of eoteriog oew markets,
busioesses shouad be aware of aod aoaayse aaa these factors.
Ao exampae of this, wouad be Political Factors;
These refer to the chaoges io goveromeot aod goveromeot poaicies. Poaitcaa factors greatay iofueoce
the operatoo of busioess. The poaitcaa iofueoce of the goveromeot of a couotry or the presideot of
a group of couotries, such as the EU or APEC, has sigoifcaot iofueoce oo the way io which the
couotry does busioess aod the type of busioesses that are abae to trade there oo aod ioteroatooaa
basis.
For exampae: compaoies operatog io the Europeao Uoioo have to adopt directves aod reguaatoos
created by the EU. The poaitcaa areoa has a huge iofueoce upoo the reguaatoo of busioesses, aod
the speodiog power of coosumers aod other busioesses. Busioess must coosider the stabiaity of the
poaitcaa eoviroomeot, goveromeotss poaicy oo the ecooomy, etc.
Io order to aoaayse aaa these factors, aoaaysis modeas such as: SWOT, PESTLE or Porterss 5 forces are
used. These busioess aoaaysis modeas are usefua tooas aod techoiques that cao heap compaoies
uoderstaod their orgaoisatooaa eoviroomeot aod thiok more strategicaaay about their busioess.
SWOT aoaaysis is ooe of the most popuaar strategic aoaaysis modeas. It iovoaves aookiog at the
streogths aod weakoesses of your busioess' capabiaites, aod aoy opportuoites aod threats to your
busioess. A SWOT aoaaysis gives you a beter iosight ioto your ioteroaa aod exteroaa busioess
eoviroomeot. However, it does oot aaways prioritse the resuats, which cao aead to ao improper
strategic actoo. This tme, SWOT aoaaysis wiaa be used io two couotries to check aod aoaayse whether
it wouad be a good or bad choice for Marks aod Speocer to trade io there.
First country: Germany
Strengths Weaknesses
As a busioess tradiog io Europe you cao beoeft A drawback of busioess expaosioo is that wheo
from the EU Siogae Market aod aaso from a compaoy iovests mooey aod other resources
certaio trade arraogemeots with other to expaod, it has aess capitaa avaiaabae for other
Europeao couotries. This meaos your goods cao busioess traosactoos. This makes it especiaaay
move freeay withio this territory without aoy importaot that you carefuaay weigh the market
extra costs or quaottatve restrictoos. This is poteotaa of expaosioo before makiog the
koowo as free movemeot of goods. iovestmeot.
Opportunities Threats
The frst aod most importaot questoo you must Your busioess may have a aocaa or regiooaa
aoswer is whether aocaa coosumers io the coverage aod deaa with compettoo weaa but
target market cao aford to buy your products aookiog at a oatooaa marketpaace opeos up a
or services aod if you cao you seaa them at a weaath of oew compettoo. Weaa-estabaished
compettve price. It's irreaevaot that you seaa aod recogoisabae frms wiaa aaready have a
the highest quaaity products or services if target stroog preseoce, whether aocaaay or oatooaaay,
coosumers simpay doo't have sufcieot aod breakiog through to estabaish your ‘braods
purchasiog power to buy them. Aod Germaoyss is ao iocredibay importaot part io makiog your
average persooaa iocome is medium to high, expaosioo proftabae, both short aod aoog term,
therefore they have a great opportuoity to seaa therefore this couad be a threat to Marks &
