ASUS Business Environment and Analysis

3445 words (14 pages) Business Assignment

27th Apr 2020 Business Assignment Reference this

Tags: Business AssignmentsSWOTPESTELInternal AnalysisExternal AnalysisBusinessDecision Making

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ACTIVITY A

Introduction

ASUS is a multinational organisation adhering to the technological sector in the economy. The company has readily developed strategies for expansion ever since its inception in 1989 in Taiwan. The technology company from the east has faced severe competition from all types of companies from the west which constituted in their public, private and voluntary sector. However, the emergence of the company in itself has been from the private sector and has been tagged as a multinational company. Moreover, it is analysed that the company has readily amended their scope in order to replenish their strategies which enabled them to sustain the dynamic trends of the market while embracing creativity and innovation in its department. The firm in itself is described to be a functional organisation where the determined number of employees exceeds 17000 worldwide. This particular report is on the famous multinational company ASUS. the report discusses the various characteristics of the multinational organisation under consideration and the type of business environment it operates in in.

Overview of The Organisation

ASUS is a multinational phone and computer hardware manufacturing organisation. the company is headquartered in Taipei, Taiwan. It is recognised as the fifth largest vendor of personal computer is by unit sales. the company has also appeared in Business Week’s “Infotech 100” ranking and has also been in Asia’s top 10 companies related to information technology (Digital Trends, 2019). the core competence of the company is that it has an original equipment manufacturer. the company is a publicly limited company.

Types of Organisations

Types of Business Organisation

There are three different types of business organisation. the first type is a publicly traded or publicly listed company. According to Paquin (2016), the ownership publicly listed organisation is dispersed amongst the general public in the form of stocks. the case organisation under consideration which is ASUS is a public organisation.

The second type of business organisation is the privately-owned business organisation. According to Walsh (2015), this is a non-governmental business organisation which is characterised by relative fewer number of people acting as a shareholder of the company. the shares are traded privately rather than in a stock exchange. An example of a famous private organisation is mars.

The third type of business organisation is a volunteer organisation. In this type of organisation, there are different volunteers who act as the shareholders of the business. This type of an organisation is using characterized by a certain cause directed towards the society.

The aforementioned three types of company are described by Ronness (2017) where it is analysed that the public companies are owned by the government and the private companies are owned by the locals through their investments. The strategies pertinent to the organisation in terms of its size is determined by Abbott, Green and Keohane (2016) where the expansionary strategies are addressed by the implication that the organisation readily hires new employees. Moreover, it is analysed that ASUS as a company, has facilitated the interest of the stakeholders while exchanging the policies adhering to the dynamic business environment it has to survive.

The various types of organisation include the five major types which includes scalar organisation, functional organisation, line and staff organisation, line, staff and functional organisation and committee organisation. The table below explains the aforementioned types of organisations in accordance to their functionalities.

Types of Organisation Explanation
Scalar Organisation Scalar organisation strictly follow the hierarchy system for the chain of commands in order to adhere to the set aims and objectives of the organisation (Thompson, 2017).
Functional Organisation The organisational structure is divided into certain departments who do not interfere with their respective operations within the organisational system. Therefore, it is analysed that the operations are firmly divided into smaller groups known as departments (Thompson, 2017).
Line and Staff Organisation The line and staff organisation are inclined towards streamlining their operations with respect to their departments. A “line function” is one that incorporates organisation interest in its core principles (Thompson, 2017).
Line, Staff and Functional Organisation It is lined with line and staff organisation yet it represents certain frameworks associated with functions of the organisation. Moreover, it is analysed that the stakeholders of the organisation are aligned to address the operations and functions of the organisation (Thompson, 2017).
Committee Organisation The committee organisation is set to be seen as an association of the people where all the shareholders are relatively familiar with the operations and are inclined to dictate a certain principle for which the organisation was set (Thompson, 2017).

In light of the study put forward by Saundry, Antcliff and Hollinrake (2016) it is analysed that the organisation size determines the level of operations and the revenue it generates. It is also determined by Kinnie et al. (2005) that the organisation size are determines the organisational strategies from the future perspective. However, the emergence of highly creative and innovative entrepreneurial ideas set by the new generation has barred the organisational structures in terms of strategy. Moreover, the inclination towards technology in terms of handling the operations has further initiated the barred the boundaries of organisational structure and strategy management.

Purpose of Business Organisation

According to Spence (2016), the fundamental purpose of a business organisation as to satisfy the needs of the customers. However, authors such as Sanclemente-Téllez (2017) have argued instead that a business organisation is assigned with the critical responsibility of optimising and balancing the interest of all of its stakeholders including the investors and the shareholders. Hence, the fundamental purpose of the business organisation is to satisfy the needs of the customers along with maximizing the profitability from the business for its shareholders and investors.

Size and Scope of the Organisation

The organisation size is determined to be big and it has abided to the vast principles it has declared in the past. Currently the scope of ASUS is to adhere to the numerous corporate governance and corporate social responsibilities. However, the implications faced by organisation and stakeholders are only unified by the scope and not the past stature of the company. While incorporating the supply of their products in the technological field, the company has readily incorporated effective management strategies that harm less to environment while fulfilling their self-defined supply chain. Moreover, the increasing size of the organisation also supports the notion with creativity and innovation which yields significant pressure in order to the stakeholders yet fulfils the organisation aims and objectives.

The scope of the organisation is set to determine the practices it adheres to replicate on the set aims and objectives of the organisation. Determining the scope of ASUS to incorporate sustainability in their operations while abiding by the sales target, it is necessary to mention that the company readily incorporates its scope while managing its operation. The company is stated to decrease its carbon emission and has constantly worked upon creatively driving their resources to achieve sustainable results rather than cost benefits of the results. However, the size of the organisation is determined to be big with respect to the revenue it generates and the employees working under its tag. It is determined by ASUS (2019) that the number of employees of ASUS are 17000 all around the world. The organisational operations worldwide are to adhere sustainability measures despite the massive competition the company is facing from its competitors.

Structure of the Organisation

The aforementioned organisation chart replicates the chart of ASUS in terms of their management style and their functionalities. It is determined through the literature that the firm strictly follows their respective hierarchy in order to benefit themselves from the stated implication. However, the research and development section is strictly under observation of the senior management in order to obtain the best possible results for the stated aims and objectives of the organisation determined by the shareholders. However, the pressure on the research and development department has continuously threatened its productivity and the firm is set to deplete its productivity while incorporating the desired strategies to fulfil their respective scope.

The structure of the organisation is determined to be an important aspect of the strategic decision making (Abbas, 2016). However, in a research conducted by Bhowmick (2015) it is analysed that the brands and organisations are readily ignoring their organisational charts and overcoming their power differences to incorporate massive changes in gaining the competitive advantage. Therefore, in light of the aforementioned research and findings, it is determined that the ASUS must overcome the strictness of their organisational culture and amend its strategies in order to reflect on their respective aims and objectives. Moreover, it must follow the structure of the public limited company in order to increase the performance pressure which will definitely maximise their productivity while adhering to their corporate social responsibilities and scope of the company.

ACTIVITY B

Introduction

The purpose of this assignment is to analyse the micro and macro environment of Asus which is a large multinational organisation. In order to conduct the analysis there has been a use of the SWOT and PESTLE analysis of ASUS which is a Taiwan based company.

Positive and Negative Impacts of the Macro Environment on Business Operations

Positive

In accordance to Menguc, Auh and Ozanne (2010) if the macro environment is supportive and positive then it is likely to observe that the business operations are going to be stable. Organisations such as ASUS are understood to be operating in a macro environment which is stable since they require productive business operations.

Negative

If the macro environment poses threats such as instable government policies or high taxes, then it could result in the creating a dangerous situation for the organisation. Business operations of organisations such as ASUS are effected when there are a potential threat such complex government policies or unfavourable economic conditions (Craig and Campbell, 2012).

PESTLE Analysis

Political

The political environment in accordance to BARON (2012) is understood to consist of the government policies, political agendas and political stability. It is important maintain a stable political environment for organisations such as ASUS to function.

Economic

The economic environment involves the economic developments along with tax, inflation and interest rates (Palmer and Hartley, 2011). It is important to state that organisations such as ASUS are operating in locations which are economically developed.

Social

Social factors are associated with the demographics, lifestyle and culture of a particular location. ASUS focuses on producing goods which are in accordance to the social factors that have been identified.

Technological

It is important for organisations to operate in technological locations where there is an availability of high technology (Worthington and Britton, 2014). ASUS operates in locations where there is an availability of high technology such as the internet and social media.

Legal

In accordance to ASUS (2019) ASUS is understood to be following the laws of the geographical locations at which the organisation is performing its operations at. Legal aspects include laws that can have a potential effect on the business operations.

Environment

Organisations such as ASUS make sure they are causing less harm to the environment since geographical locations have set certain environmental regulations. It is important to understand that environmental regulations are associated of taking care of the environment.

Impacts of Macro and Micro Factors on Business Objectives and Decision-Making

Both macro and micro factors have a definite influence on the decisions of the organisations such as investment, competitors, employees and customers (Gammeltoft, Barnard and Madhok, 2010). It is important to understand that organisations such as ASUS are associated with setting business objectives according to the macro and micro environment.

SWOT Analysis

Strength

The strength includes the ready availability of the resources for manufacturing of products and the availability of employees with high expertise. Another strength to be highlighted is the generation of high number of sales value.

Weakness

Lack of marketing and promotional activities can act as a weakness. Inadequate research and development for new products can also serve as a weakness.

Opportunity

Conducting business in emerging economies which are also known to have a high population can provide an opportunity. ASUS is also understood to have a high reputation.

Threat

The increase of competitors is understood to be a threat to the organisation, moreover government policies can be considered as a threat to the operations of the organisation.

Strengths and Weaknesses Relation with External Macro Factors

Strength

Positive macro factors such as favourable political and economic environment can potentially allow developing a high amount of profitability (Menguc, Auh, and Ozanne, 2010). Moreover, favourable economic conditions can also help to develop profitable conditions along with appropriate social conditions that can be used to gain the attention of the customers.

Weakness

The weakness that is associated with the macro environment is that it if the political or economic conditions of a location are instable then it can result in creating issues for the organisation such as ASUS. It would lower the ability to gain high profits and gain a competitive advantage.

SWOT Analysis Influence Decision-making

SWOT analysis can allow an organisation to make appropriate decisions since firms like ASUS are able to assess their strategic position (Worthington and Britton, 2014). It is also important to highlight the opportunities allow the firms to develop decisions to gain profitability and attract customers. With the understanding of the weakness organisations such as ASUS are able to overcome them in order to gain a competitive advantage.

Conclusion and Recommendations

The purpose of this assignment is to gain adequate knowledge regarding the micro and macro environment with the help of the PESTLE and SWOT analysis model. It is important to recommend that organisations must carefully analyse their external and internal environment in order to prosper.

References

  • Abbas., 2016. Organisation structure. Doctoral dissertation, University of Sydney.
  • Abbott, K.W., Green, J.F. and Keohane, R.O., 2016. Organizational ecology and institutional change in global governance. International Organization, 70(2), pp.247-277.
  • ASUS, 2019. ASUS United Kingdom. [online] ASUS United Kingdom. Available at: <https://www.asus.com/> [Accessed 24 Jul. 2019].
  • ASUS, 2019. Terms of Use Notice Privacy Policy – Terms of Use Notice – Official Site . [online] Available at: https://www.asus.com/us/Terms_of_Use_Notice_Privacy_Policy/Official-Site [Accessed 24 Jul. 2019].
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  • Digital Trends, 2019. Best Laptop Brands. [online] Available at: https://www.digitaltrends.com/computing/best-laptop-brands/ [Accessed 24 Jul. 2019].
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  • Kinnie, N., Hutchinson, S., Purcell, J., Rayton, B. and Swart, J., 2005. Satisfaction with HR practices and commitment to the organisation: why one size does not fit all. Human Resource Management Journal15(4), pp.9-29.
  • Menguc, B., Auh, S. and Ozanne, L., 2010. The interactive effect of internal and external factors on a proactive environmental strategy and its influence on a firm’s performance. Journal of Business Ethics94(2), pp.279-298.
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  • PALMER, A. and HARTLEY, B., 2011. The Business Environment. 7th Ed. Maidenhead: McGraw-Hill.
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  • Walsh, J.P., 2015. Toward a theory of business. Research in Organizational Behavior35, pp.181-207.
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