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Environmental Analysis Of Landis Lund.

Extracts from this document...


Environmental Analysis Of Landis Lund By Martin Crangle Table of Contents Introduction 1 Stakeholder Analysis 1.1 Who are stakeholders? 1.1.1 Primary stakeholders 1.1.2 Secondary stakeholders 1.2 What is a stakeholder analysis? 1.3 Chosen stakeholders 1.3.1 Stakeholder analysis of suppliers 1.3.2 Stakeholder analysis of employees 1.3.3 Stakeholder analysis of agents 2 Economic Systems 2.1 Types of Economic Systems 2.1.1 Capitalism 2.1.2 Socialism 2.1.3 Mixed economy 3 Market Structures 3.1 Types of markets 3.1.1 Monopolies 3.1.2 Duopoly 3.1.3 Oligopolies 3.1.4 Perfect competition 3.2 Market characteristics 3.2.1 Entry barriers 3.2.2 Exit barriers 3.2.3 Number and types of sellers 3.2.4 Product differentiation 3.2.5 Numbers and types of buyers 3.3 Landis Lund market environment and characteristics 4 Market Forces 4.1 What are market forces? 4.2 Impact on Landis Lund 4.3 Response to market forces 4.3.1 Establish a presence in China 4.3.2 Sell to Tier 2 suppliers 4.3.3 Conform to EU legislation 5 Competitive advantage 5.1 Competitive advantage 5.2 Competitive disadvantages 5.2.1 Exchange rates 5.2.2 Technology 5.3 Product differentiation 5.4 Steps to gain competitive advantage 5.4.1 Technological advantage 5.4.2 Proven quality advantage 5.4.3 Cost reductions 6 Roles of the State 6.1 Government policy 1 6.1.1 Sustainable growth 6.1.2 Low inflation 6.1.3 Falling unemployment or full employment 6.1.4 Balance of payment equilibrium 6.2 Government policy 2 6.2.1 Fiscal policy 6.2.2 Monetary policy 6.2.3 Industrial Policy 6.2.4 Social Policy 6.3 Types of governments and their economic influence. 6.4 How does the State influence Landis Lund 7 Assignment Task 2 Presentation and Handouts 8 Bibliography Introduction This report is designed to give a comprehensive environmental analysis of my current employees Landis Lund. It will outline: * Stakeholder objectives * The economic system in which it operates * The market structures in which it operates * Response to market forces * Competitive advantage * Implications from the State Landis Lund design and manufacture high precision grinding machines for the automotive industry. An American company UNOVA INC owns us. ...read more.


Many firms will run up debts in order to continue trading, rather than accepting any losses they are facing and leave the market. Exit barriers can be: High capital investment - for companies that have invested heavily it can be a problem to recuperate these costs when no longer making a profit. National industries that are losing out to cheaper imports will find it hard to sell equipment within the same country, as others will also be facing financial hardship. Long term contracts - when the company is going well and orders are being fulfilled it is easy to enter into long term contracts to enable better planning and budgeting. But these long-term contracts still need to be fulfilled even in times of recession and financial woe. Can you really afford to leave and suffer the contractual consequences? Government regulations - with the well being of the planet high on the political agenda, there are strict laws on how equipment can be destroyed and what materials will decompose easily. Also there is the employee legislation, just because you are not making as much profit as you would like, you are not allowed to sack everyone and try again somewhere else. Such actions can prevent you being in charge of a company again. Entry and exit barriers determine industry competition and profitability, and can be summarised as: Diagram on next page Source: www.mgmtguru.com 3.2.3 Number and types of sellers As mentioned earlier, different markets have a different number of sellers. In a monopoly there is only one, in a duopoly there is two, oligopolies have many sellers but only a few major players, whilst within a perfect competition market there are many sellers with no clear one having market dominance. 3.2.4 Product differentiation The ability to make a product appear different from the rest in its class. The subtleties needed to gain a competitive advantage and make the consumers choose your product over your competitors. ...read more.


or fixed (right). This was proposed by Thomas Sowell. 6.4 How does the State influence Landis Lund The feeling within Landis Lund is that the government is neglecting us. It appears that the government is pushing the "soft" industries such as services and IT, rather than the "hard" industries of manufacturing. As areas such as Poland, China and Russia can provide cheaper labour, the government know that UK companies will not be able to compete and don't see the point of flogging a dead horse! This sway towards a "service" philosophy may be what the manufacturing industry is to become. The technical expertise and knowledge that the UK has in abundance can be married to partners in cheap labour countries. Instead of being involved in the full cycle of design, manufacture and sales and service, companies such as Landis Lund will just provide the design and sales and service. Also the strength of the pound against the euro and dollar is not helping exports as buyers are unwilling to enter into long term contracts with the possibility of exchange rate fluctuations. Landis Lund is a member of MTA (Manufacturing Technologies Association), the aim of this organisation is promote the UK machine tool industry worldwide and provide a kind of yellow pages of machine tools for overseas investors. The MTA is also involved with lobbying MP's to ensure the survival of UK machine tool manufacturers. Even though the UK government seems to be neglecting manufacturing due to it not being a popular choice due to high labour costs, it has introduced incentives such as tax breaks on R&D to help maintain the UK as major players in manufacturing innovation. The UK government has created an excellent environment in which businesses can flourish; interest rates are low, inflation is low, consumers are spending with confidence. People are more aware of the consequences of starting up and running a business, plus with the Enron scandal controls of larger companies is getting tighter, so the risk of large companies suddenly going bust (and the subsequent job losses) will drop. ...read more.

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