Leisure sailing clothing Essay Example | Topics and Well Written Essays - 2500 words

Leisure sailing clothing - Essay Example The Company under analysis belongs to the latter scenario rather than the former one. There are four factors that will be examined under the titles shown below as follows; There are both big and small political forces that affect the way a company runs. This is especially in regard to the leisure sailing industry. First of all, since the person considering opening up the business under study is a foreign investor, then government regulations concerning foreign investment in the UK should be considered. This is because there will be some tariffs that have to be paid by the investor. But there are relatively few regulations in this area of trade currently in the UK. (Assmus and Farley, 1984) The government passed a competition policy in the year 1998 to regulate players or investors within industries that may have undue advantage over others in their arena of operation. This is an advantage for the investor because he is protected from unfavourable competition. Besides this, the investor also has to consider the fact that the UK is a signatory of the Kyoto Protocol; therefore he must make sure that the Company complies with environmental regulations set up by the government. The investor has to consider the country... Economic factors There are many economic factors that will affect the new investment. These may either be related to national issues or may be caused by some international factors too. There are very many players in the leisure sailing clothing industry and some of them may not be seen directly. This is because most companies in the UK that offer leisure sailing clothes do this as only apportion of their product offering. It may therefore not be very easy to detect such Companies as competitors in the market. The investor must put this in mind because he can be able to adjust his marketing strategies depending on what some of these competitors do. (Assmus and Farley, 1984) Another important factor that the Company should incorporate into its operation is the fact that the UK economy is relatively stable. This means that consumers have strong purchasing power. The Company can therefore engage in mass supplies because there is a ready and able market in the UK. In addition, the economy has long term prospects of improving. This implies the Company also has an opportunity to expand into there areas that have previously not been dealt with. The investor has to remember that the United Kingdom is part of the European Union. There are a number of implications that this has on any business running in that area. The first is that there may be stiff competition from other countries that belong to the region since trade barriers have been lifted. Also the introduction of a common currency will also affect the strength of the pound if the Company will be located in Britain. The Company can deal with stiff competition from other members of the EU through incorporation of outsourcing and knowledge management. The Company