M4A2 Final Project Milestone Two SWOT Analysis PDF

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M4A2 Final Project Milestone Two: SWOT Analysis Stacy Knapp Excelsior college

M4A2 FINAL PROJECT MILESTONE TWO: SWOT ANALYSIS

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M4A2 Final Project Milestone Two: SWOT Analysis Introduction Understanding the external and internal factors within the environment of a business is important since it provides information necessary to determine the level of profitability that a business will have while operating within a particular market. There are several tools that businesses can use to analyze their internal and external environments. In this paper, the business environment of Sustainable Goods, while operating in South Africa and Britain, is analyzed using the SWOT analysis tool. SWOT Analysis of Britain

INTERNAL FACTORS STRENGTHS (+)

WEAKNESSES (-)

Advantageous trade position.

Poor transport systems.

High standards of education.

Significant unequal wealth distribution.

A lot of foreign direct investment (FDI).

Little innovation.

Political stability.

EXTERNAL FACTORS OPPORTUNITIES (+)

THREATS (-)

New trade partners.

High levels of competition.

Highly educated migrants.

Financial crisis.

Technological innovation.

Business relocations.

Strengths

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Britain has a strong position in today’s global markets. This strong position is supported by factors such as an advantageous trading position, high standards of education, political stability, and a lot of FDI (Al‐ Mubaraki & Busler, 2010). The country has established its place in global markets by having good relations with importers and exporters of goods. The education standards in the UK are of good quality, even though further education in the country is quite expensive. The UK enjoys national political stability like most developed countries. Lastly, the country receives plenty of FDI from other nations. Weaknesses The UK is quite popular for having poor transport systems, especially when it comes to industrial transport systems (Al‐ Mubaraki & Busler, 2010). This is as a result of the high population and a large number of industries. Transport of goods and raw materials can be a huge challenge to Sustainable Goods. Unequal distribution of wealth and income is a major problem in the UK. There is an increasing disparity in the affluence of the country's poorer and wealthy individuals. Lastly, compared to many other developed countries including the US, the UK has lower levels of innovation, especially in creation and production processes. Opportunities With the exit of Britain from the EU, the country has an opportunity to form new business and trade relationships with other countries and trade blocs. The country can form trade agreements and seek trade partners from Asia, the US, the Middle East, and Africa (MendezParra et al., 2016). The current population of the UK has a large number of migrants that are highly educated. These migrants can boost production and innovation if allowed to work in

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skilled fields. Lastly, the UK has an opportunity to boost its productivity and industry by investing in technological innovation. Threats A high level of competition from the countries surrounding it is a key threat to the UK. Most of the countries in Europe are working hard to reach the industrial, development, and economic levels of the UK. Businesses in the UK continue to face competition from businesses in other European countries. The UK also faces the threat of a financial crisis, which could be brought about by events such as Brexit, China's development boom, and economic recession in other economies. Lastly, with the UK exiting the EU, many businesses and organizations are relocating since they wish to conduct business with the EU. This could be a problem for companies that depend on some of the relocating organizations. SWOT Analysis of South Africa

INTERNAL FACTORS STRENGTHS (+)

WEAKNESSES (-)

Tourist attraction sites.

High cost of living and unemployment.

Cheap labor.

Natural disasters.

Peaceful democracy.

High rate of crime and corruption.

Cultural diversity.

EXTERNAL FACTORS OPPORTUNITIES (+)

THREATS (-)

New trade partners.

Violence and racial discrimination.

Diversification into the service industry.

Negative attitudes towards the country.

Tourism.

Strengths

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South Africa is one of the most popular tourist attractions spots in the world, mostly because of the many exotic animals and tropical rainforests in the country. This means that Sustainable Goods can take advantage of the tourists that visit the country as a potential market. Labor in South Africa is cheap, which means that companies incur low production costs while operating in the country. While it is one of the most expensive countries to live in Africa, the cost of living and labor in the country is still lower than that in European countries or the US. South Africa has enjoyed peaceful democracy since the transition in the 20th century. This provides a peaceful environment for business operations and trade. Also, the country has diverse cultures and customs, which means that diversity works well in the country. Weaknesses Even though Africa is popular for have a low cost of living, South Africa is one of the most expensive countries to live in on the continent. Besides, the country has a high rate of unemployment, which results in many people struggling to make ends meet. South Africa is also prone to water-related natural disasters due to its closeness to the coastal line. Hurricanes and typhoons are common in the areas around the coastal line. Lastly, businesses in the country face high rates of corruption and crime. Regional wars and petty crimes are common in the cities of South Africa (Charman & Piper, 2012). Also, the high rate of corruption results in additional costs for businesses in the country. Opportunities South Africa can forge new business relationships and links with countries to boost its economy, especially through taking advantage of its mining industry since the country has many raw materials and minerals. Many jobs could be created through such business links and

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investing in the mining industry. Currently, South Africa largely relies on tourism and mining for economic growth. An opportunity exists for the country to focus on improving service-based industries such as hospitality and banking to boost the economy. This will create more jobs and safeguard the economy. Also, the country should take advantage of its beautiful destinations and adventure sites and invest largely in tourism to boost its GDP (Rogerson & Visser, 2004). Threats Radical groups and increased violence are some of the threats that businesses in South Africa face from time to time (Charman & Piper, 2012). The discrimination between White and Black people is quite high in the country. The country also faces negative connotations from the outside world as a result of increased violence and racial discrimination. Besides, South Africa is associated with disasters, corruption, and crime. Corporations are scared to open shop in the country since they are worried about the security of their investments. Conclusion A SWOT analysis of the UK and South Africa provides a glimpse of the internal and external factors that may affect business operations in each country. Sustainable Goods needs to evaluate these factors before deciding on the appropriate country to expand into.

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References Al‐Mubaraki, H. M., & Busler, M. (2010). Business incubators models of the USA and UK: A SWOT analysis. World Journal of Entrepreneurship, Management and Sustainable Development. Charman, A., & Piper, L. (2012). Xenophobia, criminality and violent entrepreneurship: violence against Somali shopkeepers in Delft South, Cape Town, South Africa. South African Review of Sociology, 43(3), 81-105. Mendez-Parra, M., Papadavid, P., & te Velde, D. W. (2016). Brexit and development. Rogerson, C. M., & Visser, G. (Eds.). (2004). Tourism and development issues in contemporary South Africa (Vol. 19). Pretoria: Africa Institute of South Africa....