Competition and business risk Essay Example | Topics and Well Written Essays - 2250 words

Competition and business risk - Essay Example Being a multinational company, Company H has eight other competitors in the market considering the fact that its market spreads across four economic zones of North America, Africa, Europe, Latin America, as well as Asia Pacific. Over the fourteen years, I had the biggest challenge and responsibility of making strategic decisions each year to enhance sustained profitability in addition to expanding the company niche in the market. Among other areas where strategic decisions were necessary included branded production and distribution decisions, corporate social responsibility, plant capacity, sales forecasts, marketing and other promotional activity decisions, private label operations, endorsement of celebrities, and most importantly, financial decisions (Goldratt, 1997, p. 63). At the end of each year over the fourteen years, four features served as the yardstick applied by the board to evaluate my performance. They included Earnings per share, credit rating, return on equity, and image rating. To me, it was clear that the operational performance of the company directly influenced these four significant performance measures. Therefore, it was my responsibility to oversee effective running of all operational activities within company H. Assessment of the PESTEL gives insights of company H currently, a position achieved under my guidance. This analysis will allow proper understanding of various factors within the macro environment that influence daily operations of the company. The relevance of evaluating PESTEL is that it brings forth a bigger picture of the environment within which Company H operates as well as opportunities and threats occurring within the same macro environment. Knowledge of the external environment within which the company runs business helps the management on behalf of the company take advantage of opportunities availing themselves and cut down threats posed by external factors. I understood clearly the five force