Assignment 4 – Threats

set: 11/10/2016               due: 17/10/2016

The last part of a SWOT analysis is to analyse both external and internal factors that are a threat, or could be a threat, to the success of the organisation.

Externally, what is the global economic climate like? How much will this affect the organisation? What about political

Government regulations?

Also changes in technology can have serious implications?

What are your competitors doing?

Imagine you are the owner of a small business in your own country.

Typically, what threats are there to the business in the short and long run?

Write up your answer, about 300 words, and add to the comments section below, along with your name and student number.

 

 

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28 thoughts on “Assignment 4 – Threats

  1. Turkmenistan
    Growth slowdown likely to be confirmed in 2016, Turkmenistan is expected to continue to be affected by low hydrocarbon prices and the economic slowdown in China (its main export market). Public investment is likely to be revised downwards, although some projects should still be go ahead so as to meet the need for economic diversification. Meanwhile, major projects in the hydrocarbon sector (TAPI pipeline – Turkmenistan-Afghanistan-Pakistan-India) are expected to remain a priority, sustaining activity especially in the construction sector. Household consumption will be hampered by a fiscal policy that is only modestly expansionary, with inflation likely to remain high.Price rises, fuelled in 2015 by the consequences of the manat’s devaluation early in the year, will continue strong in 2016. The cuts in subsidies on public services will maintain inflationary pressures. The fall in demand is however expected to prevent an acceleration of inflation.
    If I will own a small business in own country I think that threats are factors in the external environment that can inhibit you from achieving marketing goals. In a repeated, premature rush to declare the crisis over, the world is serially misreading the distinctions between short-run and long-run economic imperatives. National short-run stimulus efforts, while bold, have been unduly curtailed by long-run concerns about inflation and sustainability; as a result, these initiatives have been insufficient to push many advanced economies on to a path of ongoing growth. At the same time, global efforts to coordinate action on long-term, structural reforms have tended to unravel as countries and companies have pursued narrower, local short-term interests. As a result, there is a risk that short-run stagnation will be turned into a chronic condition that, by 2025, would leave the global economy on fundamentally unstable long-run ground.
    Threats can take a number of forms, including the emergence of new competitors or low-cost competitors, new products that offer better performance, slow market growth, barriers to market entry, changing customer needs or regulatory changes that increase cost or make it difficult to comply. Also can face the impact of changes in the political, economic, social or technological environment.
    State interventionism and difficult business climate
    Underdeveloped banking sector
    Small, isolated economy
    Poor economic diversification
    Need a more stimulated short run
    The withdrawal of monetary stimulus is premature
    Fiscal stimulus and structural reform: time for more
    Monetary policy has to its limits in advanced economies. These countries need to return to fiscal stimulus and structural reforms to generate growth and put themselves on a long-term path to sustainability.
    Need a more collaborative and to engage long run AND a stronger partnership with emerging markets.

    Thank you.

    Madina Sadikova
    20131544
    Business Administration

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  2. Azerbaijan
    Azerbaijan’s high economic growth has been attributable to large and growing oil and gas exports, but some non-export sectors also featured double-digit growth, including construction, banking, and real estate. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline, the Baku-Novorossiysk, and the Baku-Supsa pipelines remain the main economic driver, but efforts to boost Azerbaijan’s gas production are underway. The eventual completion of the geopolitically important Southern Gas Corridor between Azerbaijan and Europe will open up another, albeit, smaller source of revenue from gas exports. Azerbaijan has made only limited progress on instituting market-based economic reforms.

    The structural formation of Azerbaijan’s political system was completed by way of the acceptance of the new Constitution of Azerbaijan on November 12th, 1995. The constitution established Azerbaijan as a democratic, constitutional, secular and unitary republic. The Republic of Azerbaijan is ruled by the people. The sovereign duty of the people of the Republic of Azerbaijan is to determine its future fate and the form of independent and free ruling.
    I am thinking to start my own business after going back in my country, it can be any kind of business. Actually I want to start something no matter what it is, it don’t have to be big. One of my drawbacks are – I have very little money to start.
    In Azerbaijan, the EBRD helps small and medium-sized businesses grow, succeed, then grow again, becoming genuine catalysts for their local economies, then their region.
    my country small business clients to local consultants and international advisers who can help transform a huge range of businesses. From the smallest looking to grow to those going global, our expert network of doers, thinkers and advisers help our clients to step up and start thinking big.
    the greatest threat to business for today is targeted attacks that can be performed by attackers even without the use of malware. Their main difference from the classical attacks is that they are carefully worked out for each individual company and are the most invisible to traditional protective equipment. This attack is typically aimed at the most valuable and sensitive enterprise data.

    Name : Tural Asgarov
    Student Number : 20121151
    Department : Tourism & Hotel Management

    Thanks for Attention.

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  3. I would like to establish a publisher that has its own press or printing house that prints books or newspapers. As in the all jobs there are also many threats that a publisher can face.
    • First of all, there are many publishers that is, lots of competitors in the market. Then publishers try to reduce the price of the books or newspapers as much as possible. So this is another threat for my business, because consumers could change their opinions and pass to other brands in order to achieve the product with lowest price. So consumer loyalty is also problematic.
    • In some cases such as inflation may cause the cost of production to become higher because of the expensive supply of inputs, so the price of the book or newspaper increases accordingly. So customers could hesitate to buy a book instead of food or other first needs, because their budgets would also continue to decrease because of the increase in price of everything. As a consequence the sales could decrease. This is also an external and negative factor for this business.
    • One of the main or probably the worst effective threat is the changes in technology. E-books and internet are used increasingly instead of published books and newspapers in modern technology nowadays.
    • Also videogames, music, social networks, videos, or other low-cost or free of charge options sometimes replace reading books.
    • Changing lifestyles changes the habit of reading book or newspaper. Instead people acquire other habits or hobbies. Or simply because the time is not always enough for doing such a relaxing thing (reading something either to access knowledge or reverie).
    These are all external and negative factors, or threats. In my opinion, careful planning, reassessing all factors and learning how to deal with these threats would ensure the survival of this company.

    Instructor: Dr. Karen E. Howells
    Student Name: Günay İmanova
    Student Number: 20130745
    Department: Business Administration

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  4. Firstly I want to define what is the Threat. It is a negative external situation that is not under your control. In that situations: Loss of sales, decreasing buyer needs, changing customer needs, tax increases, technological advance, lack of implementation, competitors, increased government regulation, increased labor costs and there are so many reasons that why we are in threats situation.
    I want to mention about restaurants in Cyprus, where there are too many restaurants in. So there are too many competitors in market place. We must know:
    – How is technological changes in your industry ?
    – Do we have about dead or cash flow problems ?
    – What obstacles your organization’s face ?
    – We must control tax & government regulations. Because these directly effects your company.
    If government says us inflation are increasing recently. So many people would not come in it. As a results we know our sales would decreasing. And then we can have a cash flow problems. When we decreasing price and do campaigns, we will see some people start to come again. This will affect our to standing. Also we can use our stock. Other risk is increased in labor costs. We can sack our employees in this situation. This result is very upset, but it is need for the living of the company. Also we need some technological equipment. So that is the another risky situation. If I don’t have any equipment so we can be under risk again. People needs have changed recently. We can do control what people need to buy ? and we must know how is it going in my company? So that is the issue.

    Bahar BEYAZ
    20120230
    Business Administration
    Dr. Karen E. Howells

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  5. •A general characterization of the overall mood of the global economy or of a regional economy, which captures the status of the stock market, the perception of the economy by consumers, and the availability of jobs and credit. Business decisions such as hiring, borrowing, lending, and investment in new initiatives are often strongly influenced by the overall economic climate.

    •Government regulation needs to be considered when operating a business. Local, state and federal governments impose tax regulations and carefully monitor tax reporting and submission from all businesses.

    •Business technology has revolutionized the way companies conduct business. Small businesses can implement business technology and level the playing field with larger organizations. Small businesses use computers, servers, websites and personal digital products to develop competitive advantages in the economic marketplace. Small business owners should consider implementing technology in their planning process.

    •If I owner of a small business in my own country(K.K.T.C), that means my business face with many threats;

    – Too often executives and small business owners fail to focus enough on cash flow generation.

    -Small businesses, handling business accounting and taxes may be within the capabilities of the business owners, but professional help is usually a good idea.

    -Smartphones, social media, texting, email, twitter and other communication channels are making it easy for businesses and individuals to get their messages out. If company not use technology that become threat and that’s make weaknesses so competitors technologies become threat for this business.

    • All companies have threats and risks, including human and financial capital.Today’s business leaders is limiting their ability to adequately deal with risks facing their businesses. This is why corporate managers tend to jump from one fire to another, depending on which one their executives are trying to put out, and in many cases the fast-changing business environment is what ignites these fires. So what is the threat to be solved? Companies must resolve that threats s, then develop a robust problem-solving capability at all levels. As companies proceed to identify risks, they will then have the problem solving skills to know how to best mitigate them.

    Selma Uzun
    20130463
    Business Administration

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  6. After assessing the strengths and weaknesses of your business for your business plan, look for external forces, like opportunities and threats, that may have an effect on its destiny. These changes include
    *The appearance of new or stronger competitors
    *The emergence of unique technologies
    *Shifts in the size or demographic composition of your market area
    *Changes in the economy that affect customer buying habits
    *Changes in customer preferences that affect buying habits
    *Changes that alter the way customers access your business
    *Changes in politics, policies, and regulations
    Fads and fashion crazes:
    When listing opportunities, consider emerging technologies, availability of new materials, new customer categories, changing customer tastes, market growth, new uses for old products (think about how mobile phones and even eyeglasses now double as cameras and computers), new distribution or location opportunities, positive changes in your competitive environment, and other forces that can affect your success.
    When listing threats, consider the impact of shrinking markets, altered consumer tastes and purchase tendencies, raw material shortages, economic downturns, new regulations, changes that affect access to your business, and competitive threats, including new competing businesses and competitive mergers and alliances. Also think about the impact of expiring patents, labor issues, global issues, and new products that may make your offering outdated or unnecessary.

    Onur Kurt
    20111378

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  7. There are many external environmental factors that can affect your business. It is common for managers to assess each of these factors closely. The aim is always to take better decisions for the firm’s progress. Some common factors are political, economic, social and technological (known as PEST analysis). Companies also study environmental, legal, ethical and demographical factors.

    The political factors affecting business are often given a lot of importance. Several aspects of government policy can affect business. All firms must follow the law. Managers must find how upcoming legislations can affect their activities.

    The political environment can impact business organizations in many ways. It could add a risk factor and lead to a major loss. You should understand that the political factors have the power to change results. It can also affect government policies at local to federal level. Companies should be ready to deal with the local and international outcomes of politics.

    Changes in the government policy make up the political factors. The change can be economic, legal or social. It could also be a mix of these factors.

    Increase or decrease in tax could be an example of a political element. Your government might increase taxes for some companies and lower it for others. The decision will have a direct effect on your businesses. So, you must always stay up-to-date with such political factors. Government interventions like shifts in interest rate can have an effect on the demand patterns of company.

    Name: Elchin Huseynov
    Student Number: 20112026
    Department: Tourism & Hotel Management

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  8. The World Bank classifies Moldova in the group of low-income economies. Indeed, its GDP per capita, as measured in 2001 at purchasing power parity, was $2150, putting Moldova at the bottom of the list of countries in Central and Eastern Europe and the western former Soviet republics.
    To gain a deep understanding of Moldova’s quality of life and development, knowing its GDP per capita is not enough. The economic decline of the last decade is the main cause of the poverty. This weak performance stems from three main factors: institutions, geography and demography. Bad governance and high levels of corruption are the main causes of the weakness of Moldova’s institutions. Low wages in government jobs (monthly average of $53 as of 2003) and party-based rather than merit-based job promotion are the main factors keeping highly-qualified professionals out of the system. The low salaries of public officials and the excessive regulation of public services and economic activities cause corruption to flourish. The structure of the economy has not change much in 21st century Moldova, with agriculture still the dominant sector.
    Moldova’s main exports are food, alcoholic beverages and vegetables, which together account for over 50 per cent of total sales. All these exports are highly dependent on variable climate conditions. High-technology products do not exceed 3 per cent of exports of manufactures. Sales to Russia and other CIS countries dominate Moldova’s exports; these are vulnerable to the stability of these transition economies and dependent on political relations between Moldova and the other countries, especially Russia.
    By providing more opportunities for Moldovan businesses to cooperate with companies in the EU through transparent policies and trade and investment promotion campaigns, the government would address another problem that makes the country vulnerable: dependence on one market to the east and a single large investor, Russia. Instead, the only major Western investor, the Spanish Union Fenosa, was harassed in 2002 by the Moldovan Audit Court, which claimed that the electricity distribution infrastructures privatised by this firm were undervalued, and that the deal should therefore be considered null and void. Intervention by the IFIs was required to avoid an embarrassing scandal.
    Diversification is what Moldova needs most in both export and import markets. In order to improve the quality of its products and their competitiveness on external markets, the country needs technology transfers from the industrialised countries. Government intervention to lower or eliminate import tariffs for technological equipment and machinery would play a crucial role in this regard.
    the country must create a favourable environment for local and foreign investors. Moldova’s institutions must do their best to reduce the political risk that now keeps investment low. Re-nationalisations carried out by the communist government since 2001, such as those of Eurofarm, a US-Romanian joint venture, and Air Moldova, a firm with significant German capital, do no good to the country’s image. The Transdniestrian conflict, until resolved completely, will be a threat to Moldova’s national security and increase the risk premium demanded by foreign investors. Also, the Russian army stationed in Moldova will continue to deter western investors. In sum, Moldova needs to realise that it is not only high rates of return that attract foreign investment; it is equally important to ensure that investors have confidence in the country’s institutions.

    Name: Alina Trifonoglo
    Student Number: 20135550
    Department: Business Administration

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  9. I want to make journey to the past before starting to topic.My grandfather opened shoe-making factory in 1972. Factory’s name was Jet Kundura. The shoes were produced and exported in Turkey and England by my grandfather’s factory. K.K.T.C. was established in 15 November 1983 then factory sank after a short time . Because Turkish Republic of Northern Cyprus recognized only by Turkey and have not recognized by other country and United Nations. Northern Cyprus has been under severe embargoes since its unilateral declaration of independence in 1983, after have been politic threats to country . Many factory did not sell product like us and all the factories was closed in the short time.After my grandfather had retired , my father opened new business . Business name was Jet Kardesler clothes shop .We started to sell ready clothes. Our store is located in arasta bazaar Nicosia.
    Threats for Jet Brothers :
     We are paying high tax for customs and transport when the products are importing from foreign country . The economic situation of the country worsened.
     Rivals are following our store and they are bringing same product in market .After then for sell lowest price in market,this event is constitute threat.
     Some customers prefer to buy in internet for the advance technology. This is enother treats for Jet Kardesler.
    • Greek side’s strict control badly affect the customers passing no side. Because of embargos they seize products. So this is a threat because of politics.

    Sundus Bassin
    20120659
    Business Administration
    MAN 407

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  10. There are two factors in the SWOT analysis. These are intrinsic and extrinsic factors. internal environmental factors, and the company’s superior to its competitors in the same sector and are struggling weaknesses. The external environmental factors for business environmental factors, opportunities and threats.

    Threats can include business location or product exclusivity, patents or proprietary goods, limited human resources and staff, high cost of production, products or service similar to competitors’, government regulations, development of new technology, new substitute products emerging, price competition and economic pressure.

    The role of government The literature suggests that government has a role in encouraging innovation and being more flexible in the delivery of support. This might involve promoting cross‐sector and cross‐specialism linkages and dialogues with organisations in order to spark ideas for innovation. Propping‐up outmoded business models or industries in structural decline, a process accentuated by recession, may be less desirable than more experimental forms of intervention.

    The main problem for small businesses
    •Capital Deficiency : Develop and apply largely to small business owners to grow equity; inflation, competition and is subject to losses due to the market shortage and lose their working capital. In this case the small business market fluctuations, is an embarrassment for technological development and growth.
    •Lack of Technological Information: Small businesses because of the difficulties and deficiencies in the information provided in evaluating the information obtained can not keep pace with technological changes and not take the necessary precautions.
    •Lack of Vocational and Technical Information: The lack of qualified personnel, employment Despite the negative developments in the areas of interest complicates the existing situation and the competitiveness of small businesses is declining
    •Challenges in the Supply Input: Capital can not be due to lack of stock, it disrupts the production process and the delivery delay occur leads to the cancellation of the order in this case. Volatile price policy, over time, problems and exchange rate increases related to product quality and delivery conditions will cause problems for small businesses

    İf I were a small business owner in turkey. I was faced with this threat:
    •Using technology, the lack of innovation and knowledge awareness
    •Banks unable to avail itself of credit
    •Failure to use modern marketing techniques
    •Next are the lack of resources for technological investments
    •To not invest in appropriate investment
    •There is a risk of losing its independence and stinging
    •They are adversely affected by the competitive environment.

    Name:Recep Gündöner
    Student Number:20122072
    Department : Tourism & Hotel Management

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  11. I would open a car dealership in northern Cyprus. But according to my friend who already has a car dealership says that its really troublesome to open and maintain a car dealership in Cyprus. Its almost safe to say its not worth the trouble.
    • The global economic climate will affect my car dealership greatly if i am going to export cars internationally. Exchange rate will definitely will affect my decision making in my car dealership about buying and selling cars from different parts of the world. Politics around will definitely affect my car dealership. For example;brexit made the sterling value drop dramatically.
    • Government regulations in north Cyprus about car dealership is very strict for some reason. In order to open a car dealership you have to visit several departments belonging to the government. And you cant have a car dealership if you already have a job. And you have to pay so many taxes regarding to car dealership
    • Technology will definitely have serious implications on my car dealership. The technology will always need to improve in order to compete with other competitors and keeping the customers satisfied. And of course, keeping up with the technology is costly. The higher the technology the better for my car dealership.
    • The car dealership competition in north Cyprus is fierce. There are too many car dealerships in north Cyprus. And some of them are too big to compete with since they have more variety of cars at their selection.
    It looks like a very bad idea to open a car dealership in north Cyprus with all the threats and all. But every business has threats, the important thing is to overcome them. Overcoming them ensures us to be succesfull.

    Name:Emir Alptekin
    Student no.:20130614

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  12. Now I tell from north cyprus no big effect because north cyprus due the turkey. So in turkey always send money but problem effect to turism for example 15 july problems the turist are worry.. now the turkey start problem with the ıraq so this directly efect currency so effect goverment spending because if insede of the war wasting money. The technology is grow so hear early all economic affect but not effectly from north cyprus.. once effect from turkey when the turkey economy be affected directly effect from cyprus my job is the usually casino player so if the goverment economy not to important because peoples have a money.. this island also affect from turkey like domestic turist.if the inside of the problem in turkey like 15 july problems that is dangerous my transfer company we are the pass this problems so casino player it will continue to come. Island is a advantage because different not too much effect to world crisis but if the turkey political and any probems have so effect from turism but not effect education and anyting.

    Bircan Atakoğlu
    20110129

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  13. Azerbaijan
    Increasing in the amount of the investments directing to the development of the oil and non-oil sectors by the government for the development of this area, and useful economy atmosphere creating in Azerbaijan Republic. This increasing shows itself not only in theoretically and also in practical statistical indicators. Paying attention to the last prognosis indicators, we’ll see that, in its payment period in the result of exploitation of the pipe pump BTC forming a part of “Agreement of the Century” signed on September 20, in 1994, in 2008-2015 years the incomes is expected to be 40-50 billion USD. If one barrel of oil is 50-80 dollar till the last period of the project, exactly till 2029-2030 years, the total income amount taking from this area is expected to be in the amount of 140-180 billion USD. The use of oil incomes indicating with the big figures is more important and actual than getting them. The geographical situation and natural condition, surface and underground riches of republic gives opportunity for the forming and development of any areas of agriculture.
    Travelers to Azerbaijan must fill out a customs declaration upon arrival that is to be presented to customs officials when departing the country. You should declare all items of value on this form. Failure to declare currency and items of value can result in fines or other penalties. If your customs form is lost or stolen report the loss to the police to obtain a certificate to show customs officials when you depart the country.
    Azerbaijan’s customs officials may enforce strict regulations concerning the temporary importation into or export from Azerbaijan items such as alcohol, tobacco, jewelry, religious materials, art or artifacts, antiquities and business equipment. Personal medicines with a doctor’s statement can be imported without the permission of the Azerbaijani Ministry of Health. U.S. citizens may not import firearms into Azerbaijan. While there is no limit to the amount of currency imported, if more money is exported than imported, the traveler is obligated to prove it was legally obtained.
    The Azerbaijan Academy of Sciences in Baku has departments of physical engineering and mathematical sciences, chemistry, earth sciences, and biology; as of 1997, 19 science and technology-related research institutes were attached to it. The country has numerous other institutes conducting research in agriculture, medicine, and technology.
    The Azerbaijan Technical University in Baku, founded in 1920, has faculties in automation and computing technology, electrical engineering, machine-building, automechanics, metallurgy, radio-engineering, robotics, and transport. Baku State University, founded in 1919, has faculties of mathematics, physics, chemistry, biology, geology, and geography. Azerbaijan also has five higher institutes offering courses in agriculture, medicine, petroleum engineering, engineering, and technology. In 1987–97, science and engineering students accounted for 37% of college and university enrollments. The Azerbaijan Scientific and Technical Library is located in Baku.
    Azerbaijan operating a small flatten and I would like to start from scratch, I want to serve the people and not too money.

    Name : Musa Nacafov Student Number : 20102228
    Department : Tourism & Hotel Management

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  14. In every business or organization in this world face a lot of threats, ups and downs, all businesses face problems which they have to find a solution for, everything should be studied before starting up a businesses, but sometimes you face problems than you never thought would come. For example if there was an inflation in the country the business would be under threats and it should be warned because it might lose everything.
    On 2010 in Syria the One Dollar was equal to 48-50 Syrian Pound, right now the One Dollar is equal 500-550 Syrian pound, there is a huge difference, people never thought that this might happen, people lost a lot of business, the value of money decreased, in 2010 if you had 1 Million Syrian pound it was equal to 100,000 Dollar, right now 1 Million Syrian Pound is equal to 2,000 Dollar, so if someone was saving money in Syrian pound in the bank for example they sure lost a lot of amount of money, that’s one of the most difficult problem anyone could ever face.
    if i had a business, obviously i would study all the threats and problems that i might face for starting it, but first i would concentrate on the government regulations, because if i’m doing anything illegal then my whole business would be stopped in a second, so i would careful with every step i’m doing and make sure everything is legal, because in the end if effects the business reputation, pay all my taxes, pay all my bills at the same time, follow the rules.
    Every business has competitors, and its a advantage to have competitor, because the more competing the more hard working, you would work hard and get new ideas for the business so you would always be better than your competitors, it drives you to success. So i would always try to come up with new ideas that my competitors didn’t come up with so i would attract more customers than they do.
    Now we’re in 21st century, people are using technology everywhere (streets, houses, offices, restaurants etc..) so every business should be following the technology and advertising for the business, technology is making businesses to compete with each other. The more you use technology the more you get more customers, these days people notice places and restaurants from the internet not because they passed by it. Everything has changed threw time.

    Name: Remy Al Hafez
    Student Number: 20133817
    Department: Banking & Finance

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  15. “Syria”
    Threats are divided into two parts:External and Internal.
    Before 2011 Syria was in the top economic level in middle east but now a days there are many threats,let me share you our experience.Our external threats are many for example now we can import any resources from outside,the products are so expensive for achieving our goals as well as the unemployment increases everyday, and our relationship with the gulf and Jordan is very bad because of international politics and our government. On the other hand our threats inside Syria are unlimited because our currency now very weak,our factory location is very dangerous most of the citizens emigrate inside and outside the region,our resources is limited,no fuel for our machines, and last not least our income decreased 90% after the war and we cant cover our employees salaries,.

    Our government regulations is so hard now a days because it is close to communism and most of the private sector turn nationalization,so this affect our productivity,our political regulations is unfair,it effect our exporting .
    About the global economic climate is very hard and unbelievable,if i will compare it before 2011 and now it is changed 180 degree because our relations with U.S.A and Russia is uncomfortable this effect our short and long run in business but our long run more dangerous and maybe it will lead us to close our factory.
    The competing in Syria now is a struggle between the cities because our country divided into 14 big economics cities and we 14 branches but most of them closed on 2014 and now still we working on 1 branch in Damascus but also every day our threats from inside and outside is increasing so i don’t know if our business will be continuous for a long run because our economy is not stable .
    Mahmoud Hammoush/ 20146924

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  16. what is the global economic climate like? How much will this affect the organisation? What about political Government regulations?
    The global climate it is depends to the country but now a days it is related to politics relationships between the countries and regions,if this relation is good than this will affect my organisation in positive effect but if this relation is bad than nothing to do because this external threats depends to our political views and strategy but for example the relationship between Iran and USA good so the market of global markets entering both of these countries so now we can find a foreign products (made in USA in Iran and vice versa for USA),I’m from Lebanon but is so complicated to talk our threats because Lebanon divided into 4 regions,south for Muslims Shiaa and if someone Sunni wants to open business there it is a big threat to be successful business and same in North it is for Sunni part even in the capital Beirut it is not easy to build your own organization because it must related to some political group because we have 25 political groups and it must be sharing between them, it is so funny! Unbelievable because Lebanon is democratic country just on media but inside it is indirect related to political groups and this is the results of civil war in 1973,so threats in Lebanon are mostly internal,for example in Down Town of Beirut it was related to famous families before 2000 but now most shops are relate to “rafik hariri solidere”,so those families lost their opportunity to continue …

    Also changes in technology can have serious implications?
    Sure because our working domain before was related to repair phones (Nokia) but after the found of smart phones our business closed because our opportunity in repairing smart phones is limited,and the found of Iphone and Samsung agents in all around the worlds affect our small business and it forces us to close because we cant compete them.

    Threats are very dangerous in any business and i learn from our experience we must be update with technology,because the creativity and innovation from international economics can threat our business in a second, so to avoid external threat is to be update with technology and competitors .

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  17. An organisations environment will be constantly changing and globalisation will be increasing, which will set challenges for companies to remain and succeed in business. Therefore, every organisation has a need for change and development whether companies want it or not. As the world is getting smaller and competition is increasing, organisations have increasing pressure to develop its business, emphasize this knowledge and to strengthen its competitiveness. Strategic thinking and strategic management are relevant topics as they are currently on the lips of all managers in the organisations in order to achieve competitive advantage, high performance and to success and remain in business. Strategic management is the managerial responsibility to achieve competitive advantage through optimizing internal resources while capturing external opportunities and avoiding external threats. This requires carefully crafting a structure, series of objectives, mission, vision, and operational plan. Recognizing the way in which internally developed organizational attributes will interact with the external competitive environment is central to successfully implementing a given strategy—and thus creating profitability.

    The external environment is even more diverse and complex than the internal environment. There are many effective models to discuss, measure, and analyze the external environment (such as Porter’s Five Force, SWOT Analysis, PESTEL framework, etc.). For the sake of this discussion, we will focus on the following general strategic concerns as they pertain to opportunities and threats:

    • Markets (customers): Demographic and socio-cultural considerations, such as who the customers are and what they believe, are critical to capturing market share. Understanding the needs and preferences of the markets is essential to providing something that will have a demand.
    • Competition: Knowing who else is competing and how they are strategically poised is also key to success. Consider the size, market share, branding strategy, quality, and strategy of all competitors to ensure a given organization can feasibly enter the market.
    • Technology: Technological trajectories are also highly relevant to success. Does the manufacturing process of the product have new technologies which are more efficient? Has a disruptive technology filled the need that was currently being filled?
    • Supplier markets: Suppliers have great power as they control the necessary inputs to an organization’s operational process. For example, smartphones require rare earth materials; if these materials are increasingly scarce, the price points will rise.
    • Labor markets: Acquiring key talent and satisfying employees (relative to the competition) is critical to success. This requires an understanding of unions and labor laws in regions of operation.
    • The economy: Economic recessions and booms can change spending habits drastically, though not always as one might expect. While most industries suffer during recession, some industries thrive. It is important to know which economic factors are opportunities and which are threats.
    • The regulatory environment: Environmental regulations, import/export tariffs, corporate taxes, and other regulatory concerns can poise high costs on an organization. Integrating this into a strategy ensures feasibility. While there are many other external considerations one could take into account during the strategic planning process, this list gives a good outline of what must be considered in order to minimize unexpected threats or missed opportunities. Strategic Analysis. With both the internal value chain and external environment in mind, upper management can reasonably derive a set of strategic principles that internally leverage strengths while externally capturing opportunities to create profits—and hopefully advantages over the competition.

    The Internal Analysis of strengths and weaknesses focuses on internal factors that give an organization certain advantages and disadvantages in meeting the needs of its target market. Strengths refer to core competencies that give the firm an advantage in meeting the needs of its target markets. Any analysis of company strengths should be market oriented/customer focused because strengths are only meaningful when they assist the firm in meeting customer needs. Weaknesses refer to any limitations a company faces in developing or implementing a strategy (?). Weaknesses should also be examined from a customer perspective because customers often perceive weaknesses that a company cannot see. Being market focused when analyzing strengths and weaknesses does not mean that non-market oriented strengths and weaknesses should be forgotten. Rather, it suggests that all firms should tie their strengths and weaknesses to customer requirements. Only those strengths that relate to satisfying a customer need should be considered true core competencies.

    In the aspect of government regulation in regards to companies and how it should be run, In every country there are regulations by the government that guards every organizations these regulations helps in regulating the processes and the production process and quality control of the production of goods and services in other to protect consumers from being treated unfairly by organizations. Business technology has revolutionized the way companies conduct business. Small businesses can implement business technology and level the playing field with larger organizations. Small businesses use computers, servers, websites and personal digital products to develop competitive advantages in the economic marketplace. Small business owners should consider implementing technology in their planning process. This allows owners to create operations using the best technology available. Business technology allows companies to outsource business function to other businesses in the national and international business environment. Outsourcing can help company’s lower costs and focus on completing the business function they do best. Technical support and customer service are two common function companies outsource. Small business owners may consider outsourcing function if they do not have the proper facilities or available manpower. Technology allows businesses to outsource function to the cheapest areas possible, including foreign countries.

    Name: Linus Ndukwe
    Student No: 20125012
    Dept: HRM

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  18. Being a small business owner the threats are higher, due not having much name and influence in the industry itself. This is because you are responsible for all the profits as well as all the loss in the business. You have no one to blame or rely on to clean up the mess after it is made. Threats can be big or small on every business, but some threats that come to a point of closing down the business are the following. Government regulations of selling products that are purchased outside of the country, the duty and customs charge that the government can put on these products can spike up prices to a point where it’s not in the consumers range. Now this can lead you to buying more local products which drops the selling point of the product being international. Now competitors who have been in the business longer and have an upper hand because they know all the laws and regulations and ways to get around them due to more experience. Also now a day with the fast growing technology, business owners have to stay in loop with all the new trends to keep up with the generation of new consumers. This means being in touch with consumers through different and new means of communication such as social media platforms. Not doing so can have serious implications on the popularity and over all leading to fewer sales of your product. Now internal factors that can be threats to your business can be having the same outlet and look to your store, meaning not adding something different to attract your consumers. If your store is going to look like the same store across the street and offers the same services as every other competitor then why would the consumer buy specifically from you? Because economy is drastically shifting to self-serve businesses, therefore change every now and then to make your company stand out can lead to longer run in the industry. Lastly the main threat is having unlimited liability, which means all the risks are your own, If your business goes bankrupt you end up losing all your personal assets as well.

    Name: Abdul Ahad Shafi
    Student Num: 20146859

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  19. An economic climate is a particular set of social institutions which deals with the production, distribution and consumption of goods and services in a particular society. The economic climate is composed of people and institutions, including their relationships to productive resources, such as through the convention of property.
    The political climate is the aggregate, current mood and opinions of a populace about political issues that also currently affect that population.
    I would like to establish an auto gallery in TRNC. I will buy second hand cars from other countries cheaper and sell them in Cyprus.
    Firstly there are lots of car galleries in Cyprus. So the competition is at the highest level. Because of the competition every gallery makes an offer that they can do. So they reduce their prices to sell some more cars. As well as profits get lower. Everyone makes an offer for consumer loyalty.
    In TRNC there is high inflation. Because of the inflation cost of the cars gets higher for us to buy from another countries. So prices of the cars in my galler also gets higher. Also cost of everything increase which comes from other countries, so people start to not buying cars and they will buy their neccesities firstly. So our sales decrease also. This is an external threat.
    Also changes in technology decrease our sales. Everyone can easily learn to use smart phones or use a computer to search web sites today. So everyone can sign up for a web site for looking for cars from there. They can buy cars from the internet from foreign countris like us. If our prices are expensive for them, they will buy cars individually from web sites. So our sales are decrease.
    ZEKA SALDAM
    20130323

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  20. First : I would like to show what is threats

    • any changes arising in the external environment may result in threats affect the company and its performance directly
    • For example I will open a small project to import a certain type of clothing from outside Egypt
    • I see that the threats that will face this little project
    – –
    – Deviation in consumer tastes are moving away from the products produced by the company
    becouse there are
    the different tastes and influenced by other cultures l tasdes are moving away from the products produced by the company.
    – – Sudden entry of a product an alternative to whate is produced by the company to the market in which the company deals in which some of the qualities that the consumer loves available.

    – – New laws impose crippling the business sector by the government, whether taxes or other government actions

    -An increase in the crippling international trade laws to increase tariff.

    – – Instability of the currency rate of the rising dollar and falling prices, the pound and the economic problems faced by the State

    Omar Mohamed
    20159413

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  21. Threats are external factors within the organizations environment that cause adverse effect to our business which leads to loss in most cases. I will be discussing the threats that threaten business organizations in Nigeria
    • Government duties policies; government announced 100% levy on imported rice and 10% custom duty, this was to encourage local production and processing but in this case, rice processing industries are way less to just input such policy and there is not much advanced equipment that we can boast of having genuine rice processing factories instead of it to be favourable its causing more harm because it has led to scarcity how is it affecting us as a local business the duties that are inputted in imports most especially on machineries are so high that it discourages investors with this policy it has restricted development in the sense that we’re going to have standard equipment which in turn will generate more production and workforce.
    • Bank policy: CBNs decision to devalue the country’s currency for some sort has not helped because it has led the country into recession and many investors have left to neighbouring countries which is no good news for us as a country and the economy in general, in addition the transaction rates in foreign market using local banks is as low as 100 – 300 dollars monthly which clearly for business individuals mostly locals it’s a bit absurd given that it has restricted purchasing power
    • Suppliers: the recession in the country is a massive setback to individuals more so to business organisations, for industries the cost of production has risen due to the high cost of raw materials. Given that Nigeria is a country blessed with resources not only petroleum but other minerals and food its absurd as to why raw materials tend to be expensive, many say this happen as a result of the economic meltdown we’re facing and the change in government policies concerning local industries etc.
    • Technology: technological advancement is something that is lagging in Nigeria. I’ve not seen a standard power supply that has stayed up to two months without fluctuation, this is something that government are supposed to prioritise in, if they can’t handle privatise it because for production and better high tech objects to work we need a steady power supply, how has it affected organisations, I know of a local brewery that is supposed to grow become bankrupt which led to the total shutdown so as a local company this is a big threat to us most especially when production needs constant amount of light to progress.
    In the short run most companies can sustain production, but in the long run companies will short down either due to bankruptcy or they leave to another country where the grass is green as in the case with many companies in Nigeria now. With these adverse effect Nigeria can be considered in the next 10-20 years as one of those developing countries or worse underdeveloped country.
    Atang Agwom
    20134301
    Business Admin

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  22. SWOT analysis is very important to see what is really going on in your company. As all stages are important in SWOT analysis, I belive that threats are one of the important factor which can lead the company to go bankrupt. However, if you find the threats and list below according to the importance, you can reduce the risk of failure. You have to improve your technology to be stronger than your competitors. Moreover, you have to follow what your competitiors are doing and plan your future stages to be more successfull than others. Moreover, you must always remind that what obstacles do you face?

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  23. Imagine that you are the owner of a small business in your own country. Typically, what threats are there in the short and long run?
    A musical studio. Threats that may come in the short run, here;
    1. Fear of desolation of brand because of its small scale business like nature. It is a fact that consumers worldwide are attracted to quality. There is a high tendency for a small scale business of this sort to be looked down upon by customers because of its small nature. Customers, in this context artistes, desire a brand that is popular and renowned for several reasons such as reputation and one that will bring recognition even among musical colleagues and the music market as a whole.
    2. High competition in the music production market. Without doubts there might be a lot of musical studios around that offer about the same services as Weee’s studio. This means that the organization has to give its entire best to attain organizational goals.
    3. The cultural background of the nation might be a hindrance to their patronizing of this brand. Weee’s studio will offer new and unusual kind of services to the customers. As good as this seems, from afar it can also be a dangerous path to tread by the organization. Over the years there’s been a trend in how services are offered to customers in that there has not been this new type of sound, design and genres we plan to introduce.
    4. Service price. Fears of customers not satisfied with quite high service price is present.
    5. High content restriction as imposed by the media or even the government. Radio and Television stations not airing some materials because of the religious’ content contained in them.
    Threats in the long run.
    1. High taxes. Presently Nigeria is a developing nation, forecasting into the future, taxes might be a very functional part of the economy.
    2. Political instability. Change in governments can affect the growth of this business. This can happen by effected changes to the sectorial policies.
    3. An increase in the number of competitors.
    4. A hike in the cost. A lot of inputs go into running such a firm. A major example is petrol and diesel used up in generating electricity. The fear is, what if the prices of this inputs rise up to a great max. This will imply an increase in costs.

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  24. The energy and technological status of Turkey may cause problems that hinder the development of cooperation mechanisms in the region. According to estimations, the annual increase in electricity consumption for the decade 2010- 2020 is expected to amount to 7%, causing the risk that the existing supply and new energy infrastructure investments will not be able to provide the required energy supply. Meanwhile, the existing network infrastructure needs strengthening and proper maintenance, which is not supported by adequate network development actions. In addition, the fact that the majority of the equipment used for the construction and operation of wind farms, hydropower projects and other projects for the exploitation of RES is imported can lead to increased investment costs. This creates a significant dependence on international markets, but also from foreign suppliers.

    A major threat to the development of Turkey’s electricity market and especially in the development of RES is the delay of privatisations and the limited participation of the private sector. The Turkish market in recent years is in a phase of transformation with the increasing private participation in various sectors of the economy.

    *According to estimations, the annual increase in electricity consumption for the years 2010-2020 is expected to be around 7%

    *Limited incentives for geothermal development projects where there is huge potential.

    *Existence of limited network development actions.

    *Dependence on other countries. Imports of oil, natural gas, coal for electricity generation.

    *There is significant reliance on international markets, as well as on foreign suppliers.

    *Existence of network infrastructure that needs strengthening and proper maintenance.

    *Turkey becomes a member of the EU.
    *Delays in privatization and private sector participation.

    *Limited incentives for electricity generation from biomass and geothermal energy despite they are fields with unexploited potential.

    *The conversion rate between Turkish lira and foreign currencies affects the investment cost.

    *Risk of not benefiting local communities.

    *Job loss in some parts of the value chain that is not supplied locally.

    *Bad distribution of benefits.

    Ozan Giray
    20121787
    THM

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  25. Threats
    Student name: Tagaev Kursant
    Student №: 20123772
    Department: Banking and Finance
    As you know that, the threats can be occur of different causes and they are divided into internal and external parts. Of course, these threats can involve serious implications if they will be not predicted and analyzed. Assume that I am an owner of a small company in Kyrgyzstan then the threats to my business will be as following:
    Firstly, there will be the internal threats that can arise in all small businesses such as
    I. Inflexibility of contracts with suppliers, which make relationship difficulty, and in case of failure can lead to rupture of supply chain.
    II. Surplus or deficit of reserves-excess of reserves above the optimal level can lead to additional costs and selling them at a low price, in case of deficit causes the disruption of chain of supply.
    III. Unreliable employees, it occurs when the employees think about only its profits by selling the company`s confidential information to the competitors.
    Secondly, I am going to talk about the external threats with which my company can face. These external threats can be in economic, technologic, natural and political natures. All these threats exist in Kyrgyzstan. As for economical nature, there can be the threats such as
    I. Increasing the competition and its changing nature
    II. Instability of the demand
    III. Increasing the Interest rate
    IV. Underground economy
    V. Corruption
    Especially I want to talk about the threat of political nature. The political situation of my country is unstable, unpredictable therefore in the country very often happens the state coups, and it is affected to the small, medium and large businesses by doing them unstable. It damages not only for them even to all economic sector. That is why this kind of threat is very important and it requires a careful analyze and predict.
    Well actually, the changes of technology has positive effects on global economy. In our days, the business processes have been modified and organizations are now working much more efficiently than ever. At the same time, technology has opened a new way of communication, allowing businesses to communicate and collaborate beyond borders. However, another hand it has also negative side. I think one of the famous threat for businesses is Hacker attack and it is very dangerous problem for all businesses. The hackers attacks for the companies mean hacking organization`s system, massive leak of information, stealing money etc.

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  26. Name: Nigel T Muza
    Student number: 20156867
    Department: tourism hospitality

    Assignment 4 – Threats
    Typically, what threats are there to the business in the short and long run?
    My small business: restaurant in Zimbabwe
    Threats available for a small business are that of Protecting Small Business Property that is been able to protect it from big companies who might want to acquire it for its business ventures. Another threat is that of business interruption that is from natural disasters thus small business might find it hard to recover from such an upset since your location might be temporally unusable.
    Moreover, another threat is that of difficulty to convince cost conscious customers to spend on quality in home catered meals, growing cost benefits which contributes to increased product prices.
    Furthermore, competition from restaurants offering home or business delivery by waiters on wheels as a way to compensate for reduced in restaurant business is a major threat to my small business.
    In addition, indirect competition from expanded takeout sections at local grocery stores is another threat to small business, Employees’ Injuries is another threat to my business for Employees’ injuries can be detrimental both to the affected employee and to your business as a whole. From a business owner’s perspective, workplace injuries not only mean medical treatment costs and lost productivity.
    Another threat is that of Liability Losses which includes claims of bodily injury or other physical injury, personal injury such as libel or slander, advertising injury, and property damage resulting from your products, premises or operations.
    Electronic Data Breaches is one big threat that is considering the endless advancement of technology, one risk that has emerged as one of the most common threats to small businesses is a data breach. Some small businesses lack an IT department and/or advanced security measures, putting themselves at an increased risk of a cyber-attack.

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  27. SEBASTIAN NLEBEDIM
    Threats are the external factors that affect a business which could be taxation government regulations. Think of a business to open I will open a small fashion industry that design and produce clothes. They are many threat that will affect my business knowing that things changes very fast. Some of the threats that will affect my business:
    Copying of design: your ideas can be copied or stolen. If not carefully kept well which will take away your customer from you.
    Government regulation: the government can increase taxation or stop importing of materials use from some countries which will definitely affect your company.
    I can rum out of ideas of designer to produce to my targeted segment which will also affect my company and when I copy other people design, it will also affect my business since my design is not follow the trends and also the climate change is also threat ,knowing that I have to produce clothes to suite the weather conditions.
    Trade embargo: if there is a trade embargo, it will restrict me from trading with other countries which will affect the sales of the product.

    SEBASTIAN NLEBEDIM
    20133593
    BUSINESS ADMINISTRATION

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  28. The energy and technological status of Turkey may cause problems that hinder the development of cooperation mechanisms in the region. According to estimations, the annual increase in electricity consumption for the decade 2010- 2020 is expected to amount to 7%, causing the risk that the existing supply and new energy infrastructure investments will not be able to provide the required energy supply. Meanwhile, the existing network infrastructure needs strengthening and proper maintenance, which is not supported by adequate network development actions. In addition, the fact that the majority of the equipment used for the construction and operation of wind farms, hydro power projects and other projects for the exploitation of RES is imported can lead to increased investment costs. This creates a significant dependence on international markets, but also from foreign suppliers.
    Now I tell from north cyprus no big effect because north cyprus due the turkey. So in turkey always send money but problem effect to turism for example 15 july problems the turist are worry.. now the turkey start problem with the ıraq so this directly efect currency so effect goverment spending because if insede of the war wasting money. The technology is grow so hear early all economic affect but not effectly from north cyprus.. once effect from turkey when the turkey economy be affected directly effect from cyprus my job is the usually casino player so if the goverment economy not to important because peoples have a money.. this island also affect from turkey like domestic turist.if the inside of the problem in turkey like 15 july problems that is dangerous my transfer company we are the pass this problems so casino player it will continue to come. Island is a advantage because different not too much effect to world crisis but if the turkey political and any probems have so effect from turism but not effect education and anything.
    rima al mustafa
    2014570
    business adminstration

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