In present scenario, operating and managing business at global level has become complex task. Companies operating business at international level have to face various issues and challenges due to change in business environment. Business are extremely effected by changes in external environment. There are various variables which might affect company and its business structure these are political, economic, legal technological etc. Study of business environment in global context is essential in order to address those factors which might have impact on business operations. Allocated country is Belgium. The selected organization is Ocado. It is basically an online supermarket.
The purpose of report is to analyses the factors which mayThe highly influence the Ocado decision related to the expansion of business in particular country. Various models such as Porters five force and Pestle analysis will be used for analyzing the effect of changes in business environment on organization.
Background of company
Ocvado has its headquarter in hatfield, UkBusiness entity has developed and operate a unique business model which has enabled an organization to achieve leadership position in an industry. Business model has been specially designed for catering the needs and demands of those customers who prefer to make purchases of goods or services online. Company has mainly focused on making home delivery of good quality drinks, foods and house hold products. Revenue of company is 1, 4623.7 million pound (2017). An operating income of firm during 2017 was 14.7 million pound (Ocado group , 2018.). Products offered by an enterprise are own brand groceries, flowers, toy magazines etc. In addition to this, business entity also sold A range of Carrefour's products. Morisons is the big competitor of Ocado. Other competitors are Tesco, Argos, sainsbury , Waitrose etc.
Background of the country
Belgium is federal state which consists of three different cultures. Changes ion political as well as economic factors of Neighboring countries have direct as well as significant effect on Belgium. The modern, private enterprise economy of Belgium has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Nation has few natural resources which can be utilized by Ocado for further expansion of business. Economy of Belgium is completely dependent on world trade. As Belgium is located at the central geographical locations , Ocado can explore and capture various trade advantages. The nation also consist of skilled as well as productive workforce which can be hired by Ocado for executing various business operations. Beligium is the member of Benelux. The major feature of country is that there is equal distribution of income, this factor is to be considered as it have direct effect on the profitability ore financial performance of company.
There was decline in foreign direct investment and economic growth during 2000 to 2008. The decrease in FDI and economic growth has led to the increase in employment rate during 2009 (Belgium Economy :Poipulation, GDP, inflation, business trade and FDI, 2018.). Belgium per capita GDP ranks among the world's highest. The inflation rate is below 2 percent during the period of 1980 to 2017 which is positive in context of expansion of business.
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- Belgium Economy :Poipulation, GDP, inflation, business trade and FDI, 2018. [Online]
- Ocado group , 2018. [Online]