Paper Example on the UK

Introduction

The country has strength in terms of being in an advantageous position of trading. The UK has established itself as a global leader in business, therefore giving the parties both from within the UK and outside its borders to set up operations in the country. More importantly, the country has a robust tertiary industry that provides value for the economy through the provision of revenues and jobs for the inhabitants of the country (Phadermrod et al. 2019). The UK also enjoys political stability, which offers the required environment in which businesses can be set up and run. This way, the companies do not have to worry about the lack of political stability, which stimulates economic growth through setting up and running businesses in the country.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Weaknesses

The UK has weaknesses within itself that reduce the possibility of businesses moving forward and experiencing growth in their endeavors, especially those concerned with setting up of Gym Group and its operations. First, the country experiences significant disparities in a wealth of the population, therefore creating less enthusiasm from the people in joining gyms and gaining membership, since they will have to consider prioritizing the basic needs over factors believed to be luxuries like membership to a gym (Phadermrod et al. 2019). Also, the UK suffers from lagging in terms of embracing technology. Therefore, gyms like Gym Group that use technology in their running will be held back in their operations, since they will not be up to date on the technological needs of the contemporary gyms.

The UK has vast opportunities that they can explore to turn them into strengths. For example, the UK has the chance to acquire new trade partners who can help them strengthen their position as global leaders in business. The trade partners can also help them in addressing the threats that they face in their operations. Furthermore, the UK has an opportunity of accessing the available technology in other countries of the world. This way, the organizations in the UK can get to access the technology to make their operations more efficient.

The country faces a threat of competition from other forms of exercising, which may not necessarily need the use of gyms, therefore creating scarcity in the number of customers that could access the services of a gym. The lack of well-paying jobs places a threat to the Gym Group since the people in the UK will opt for ways through which they can prioritize the basic needs and ignoring those that they consider being forego-able. Finally, the UK faces a constant threat of financial crises that may occur within and without the country that will affect the business activities of the country.

External Environment Analysis

The political system of the UK has a direct influence on the performance of businesses since the policies formulated will help in creating the needed conditions for the advancement of companies in the economy. The UK has political stability, which is a contributing factor to the success of businesses. Economic factors of the UK also play an active role in establishing and running businesses, with the economic prosperity of the country playing a part in determining whether or not the people in the economy will have surplus money to address their secondary and tertiary needs.

Social factors in the UK have a direct effect on the performance of the Gym Group in the UK. This is made right because the social perception of the people towards healthy lifestyles will determine whether or not the Gym Group will have as many customers as they may need. Therefore, the Gym Group will hope that the services they provide to the society will be positively received by the community, hence increasing the volumes of their customer base (Phadermrod et al. 2019). Technological factors will also play a critical role in increasing the effectiveness of the services that they offer the public. When businesses embrace technology, they can skillfully adapt to the needs of society without having to take longer in doing so.

Organizational Structure

It is vital to decide on how where the company’s headquarters will be based (Vatamanescu et al. 2017). The options are based centrally or to have it devolved. The best structure would be to have a combination of both. In this case, Gym Group company would have a central base from which all other decentralized bodies derive their authority, as well as being capable of reaching more in-depth into the local market through its decentralization features.

The most challenging issue in internationalization is legal non-compliance and protection of IP. This necessitates the need to have a well-drawn out of a financial plan and corporate guidelines. The study by IKB Deutsche Industriebank revealed that high equity capital is fundamental to a company succeeding internationally. High investments are reliant on access to reliable financial sources that are long-term in nature.

Global Strategy

Unlike a multi-domestic strategy, this strategy is more focused on how efficient the firm is global. It is more centralized, and the home office controls it. Rather than tailor products for local consumption, they are standardized. Business units operating strategically in each region, are presumed to be reliant on each other, and the home office role is to integrate all these businesses (Young 1987). Therefore, the emphasis is placed on global strategies due to favorable economies of scale and offers better chances to use innovations that have been created at the level of corporates or in one country in other markets.

Despite global strategy being able to decrease the risk for in the firm, the firm will find it challenging to gain high market shares within local markets because the worldwide approach isn’t tailor-made to domestic demands. Further, a global strategy’s management is cumbersome since one has to coordinate everything from separate country borders.

Conclusion

Organizational structures are essential for every organization. This being so, even business organizations need to form proper organizational channels to provide for their needs and achieve the set goals. However, despite the need for organizations to have structures that they follow, they should also consider the organizational channels that work best for them depending on the different aspects that relate to them, such as their size, the finances available to them, and the scope that the organization needs to reach (Metin, 2017). The board of directors is responsible for the daily operations of the business organizations. The board is responsible for setting the rules and regulations that all the stakeholders need to follow and oversee that the organization is always on course to achieve its goals. The board of directors is also responsible for overseeing the organization's financial aspects, whereby all the expenses and incomes are managed by the board (Mufti et al., 2020).