The Factors That Impact The Business Environment Tourism Essay

The London Olympics has been a tremendous event for Jamaica the country on the international forum, and locally raised the old hackneyed question, How can Jamaica exploit and cash-in on the gains made in sports to a more useful and lasting level in the economy. A total of 12 medals were won in sprints by our athletes. Jamaica has the world’s fastest woman (Shelly-Ann Fraser-Pryce) and the world’s fastest man (Usain Bolt).

One particular question being asked is “what are the prospects for the Jamaican economy and investments in particular”. A business is any individual or group of individuals who has a goal of making a profit by selling products or services. The survival of a business depends on its profitability. Business environment is the aspects of the surrounding of the business enterprise which have control on the functioning of the business.

OJECTIVES OF STUDY

The objectives of the study are as follows:

To examine the Jamaican business environment and the political, economical, social, legal, technological and competitive environments impacts on business organizations.

To establish a plan to illustrate how the gains in sports can contribute to gains in business economy.

To develop a marketing and communication strategies to demonstrate how the plan will be communicated to various entities like Jamaica Hotel and Tourist Broad Association (JHUTA), Private Sector of Jamaica (PSOJ), Manufactures Association of Jamaica (MAJ) and others.

To identify means and ways of financing and budget the plan this is to be implemented.

RESEARCH QUESTIONS

There are 4 major research questions of this study. These are as follows:

Analyze the Jamaican business environment and the economic, political, social, legal, technological and competitive impacts of these on the business organizations.

Develop a plan to show how the gains in sports will be translated to gains in business economy.

Develop marketing and communication strategies to show how the plan will be communicated to the stakeholders.

SCOPE OF STUDY

The study aims to demonstrate how Jamaica can exploit and benefit from the gains made in sports by our athletes to a more useful and lasting level in the economy.

BENEFITS OF THE STUDY

This study will provide information on the Jamaica business environment and factors which influences the business organization. The results of this study hopefully show how the gains in sports made by our athletes can benefit the country economically.

TASK 1 : ANALYSE THE JAMAICAN BUSINESS ENVIRONMENT AND THE ECONOMIC, POLITICAL, SOCIAL, LEAGAL, TECHNOLOGICAL AND COMPETITIVE ENVIRONMENTS ON BUSINESS ORGANIZATIONS

ANALYSIS OF THE JAMAICAN BUSINESS ENVIRONMENT

Since the London Olympics, there have been a lot of talks of how Jamaica can actually benefit from the gains made in sports both locally and internationally. According to (Keith Davis), business environment is a collection of all conditions, events and influences that surround and affects the business. Businesses are affected by internal and external environmental factors, which collectively constitute to business environment.

Environmental analysis helps to identify opportunities and to plan to take appropriate actions to avail these opportunities. Thus, environmental analysis becomes an important step towards corporate planning and business policy decisions.

A SWOT (strengths, weaknesses, opportunities, and threats) analysis of the Jamaican economy is relevant when examining the business environment.

Strengths

Weakness

Opportunities

Threats

Culture, music , sports

Poverty

Global recovery — increased markets

Rising oil and commodity prices

Tourism products

High cost of energy

Import substitution opportunities

Upcoming election

Agricultural opportunity

Poorly structured economic foundation

Tax reform and simplification

Rising oil and commodity prices

Bauxite

Political system

Public sector rationalization

Focus on more investor-friendly emerging economies

Many of the initiatives taken by our politicians and bureaucrats over the years have been good. The problem, I believe, is that many of these initiatives have been taken within the context of the same inefficient structure that created the problem in the first place. So in effect what we end up doing is fixing the symptoms rather than the underlying problem.

FACTORS THAT IMPACT THE BUSINESS ENVIRONMENT

According to Arthur M. Weiner (T.R. Jain, 2009-2010) business environment is the ultimate or set of conditions – economic, social, political or institutional in which business operation are conducted. All these factors are beyond the control of the business.

ECONOMIC ENVIRONMENT

The activity of a business is shaped by the economic environment they operate in. The economic environment consistently changes with the change in government policies and changes in political situations. The Jamaican economic environment is complex in nature and is dynamic. This take into consideration unemployment rate, distribution of wealth and income, inflation rate, trade cycle, etc. The government of Jamaica has significant degree of influence over the flow of income and hence over the level and pattern of output by private and public sectors, with all this said; it creates difficulty for business to set-up in Jamaica successfully.

POLITICAL ENVIRONMENT

The business world is affected by politics in a variety of ways; business growth is indispensable when there is a stable and dynamic political environment. Political influences on the Jamaican environment are political stability, political climate, budget deficit, etc.

SOCAIL ENVIRONMENT

The social environment refers to influence exercised by certain social and cultural factors which are beyond the control of business unit. Such factors include the attitude of people to work, case system, religion, education, marriage, family system and habits.

LEGAL ENVIRONMENT

The legal environment of business is a key influence on the business organization just like political and economic environments with which it is intertwined. Business, like individuals, exists and carry-on their activities within a framework of law which diverse from custom and practice from judicial decisions of the courts and from statutes put in place by the government of Jamaica. The purpose of legal environments is not only for the provision of enabling mechanism through which it can pursue its objectives, particularly the achievement of profits through entrepreneurial activity.

TECHNOLOGICAL ENVIRONMENT

According to A.V. Knight and D.J. skills, information technology has been defined as “the convergence of computing” (Ivan L. Waterman, 2005). Information is thus a vital resource in the process of development and in the business environment as a whole. Technology creates both new business opportunity and threats for existing business activity. Technology is not cheap at any level, in some business computers are used to do much of the work. Technology is the most dramatic force shaping the destiny of people all over the world.

COMPETITIVE ENVIRONMENT

The competitor’s actions are major constraint or limit on business strategies innovations by competitors maybe difficult to copy or better. The competitive environment significantly affects business but it is beyond the control of the business.

TASK 2: DEVELOP A PLAN TO ILLUSTRATE HOW THE GAINS MADE IN SPORTS WILL BE TRANSLATE TO GAINS IN THE BUJSINESS ECONOMY

With all the success of our athletes, it is only fair to utilize the brand ‘Jamaica’ to bring optimum benefits to the country’s business economy. We all know that Jamaica as a whole lot to offer and so we anticipate the economic growth and development o the country. If we can attract and convince investors to come do business in Jamaica, we can reduce unemployment rate, which will improve our standard of living and also get more visitors to the country to increase our foreign exchange earnings. The government will have more means of collecting taxes which will indeed benefit the economy. Selling brand ‘Jamaica’ will have significant benefits to the business economy of Jamaica. The plan will be called ‘Develop Jamaica’; this plan will focus on making Jamaica the place of choice to raise family, do business, work and live. We have to demonstrate to the rest of the world that we have a world class economy.

MISSION STATEMENT

To develop an environment which will facilitate economic growth and development and attract new and existing investors to the country to do business, hence bring significant benefits to the business economy and the country on a whole.

OBJECTIVES (SMART)

To attract new and repeated investors to the Jamaica economy.

To make brand ‘Jamaica’ known to the world as the ideal place to do business.

To increase the growth and development of the Jamaica business economy.

Make Jamaica a healthy, natural environment for its citizens and potential and existing investors

To create new business opportunity to improve the standard of living of the Jamaican people.

STRATEGIES

Raising the finance to build and improve the country’s infrastructure just for attracting new and repeated investors.

Launch a marketing campaign to sell brand ‘Jamaica’

Concentrating on sports development and events to make investors aware of what Jamaica has to offer.

Differentiate the resources and business opportunities Jamaica has to offer from those of its rivals, so has to attract new and repeated visitors to the country and also attracts existing and new investors.

Establishing a Jamaica house in more countries such as Rio and other countries which will give exposure of the music, culture and business opportunities of Jamaica and also what the country has to offer.

TACTICS

For the next six (6) months there will be a series of advertising events to promote brand ‘Jamaica’ countries such as the UK, USA, Europe, Canada and other countries.

Host sporting events such as ‘Jamaica Nationals’ where we can showcase our athletes and the offerings of the country.

Planning a tour of Jamaica house located in the UK, where all the beauty of Jamaica will be highlighted.

Making it more accessible for investors and / or stakeholders to do business in Jamaica by reviewing some of the present government policies and legislation which governs business operation in Jamaica and making a few necessary changes to accommodate the establishment of new and existing business.

MILESTONES

Milestones and Schedule

The milestones and schedule outlined below combine Develop Jamaica strategy and execution plan. Successful implementation will realize the economy growth and development of Jamaica projections discussed above.

Objectives

The Jamaica economy is positioning itself for steady and sustainable growth, forming long-term strategic partnerships with venture capital organizations and countries. ‘Develop Jamaica’ strives to achieve 100% new and repeated investors/ stakeholders business and satisfaction.

These milestones demarcate the growth of ‘Develop Jamaica’ plan and serves as a progress report of how well the strategies, mission and business model of the plan is being executed.

Milestones

Planned Start Date

Planned End Date

Budget

Manager

Department

Incorporation

11/18/2012

05/01/2015

$850,000

Thomas I

Marketing

Website

12/19/2012

12/25/2012

$80,000

Grant D

Web

Communication Infrastructure

12/30/2012

05/01/2015

$900,000

Thomas I

Marketing

Corporate Identity

12/20/2012

05/01/2012

$600,000

Thomas I

Marketing

6 Presentations

11/22/2012

01/07/2012

$120,000

Shaw S

GM

Advertising

11/25/2012

03/26/2012

$400,000

Jonas K

Sales

Seminar Implementation

11/30/2012

12/01/2012

$90,000

Shaw S

GM

Hire Employee

12/01/2012

12/20/2012

$800,000

Wallace I

Department

Venture Capital Partnerships

01/03/2013

–

–

Sharpe C

Department

Totals

$3840000

DUTIES AND RESIPONSIBILITIES

Managers will give weekly report on any progress or changes which occurs.

Each entity involve in implementing the plan will communicated the objectives of the plan to which they in return will communicate to their employees.

Persons responsible for marketing must come up with new and creative ideas to sell brand ‘Jamaica’ efficiently and effectively.

MONITORING AND EVALUATION

PROGRESS REPORT

Each entity involve will be required to report an update of the performance and progress of his/ her daily, weekly or fortnightly task depending on certain circumstances.

FEEDBACK FROM STAKEHOLDERS

Information received from each entity relating to the operations of the plan can be used to improve and/ or modify the performance of the plan.

CHANGE LOG

Document changes that occur during the plan, such as cost, risk and time.

There will also be a performance review to assess the plan status and progress. The performance review will be used along with the variance analysis, trend analysis and earn- analysis.

TASK 3: MARKETING AND COMMUNICATION STRATEGIES FOR COMMUNICATING THE PLAN TO THE STAKEHOLDERS

MARKETING OBJECTIVES

Increase new and our market share by 4% by June 2013 in attracting new and repeat stakeholder to come and broad and do business in Jamaica.

Develop new/ innovative offerings to attract 25% of implementation of plan.

Gain a competitive advantage over rival countries, by making Jamaica the ideal place to do or set-up business.

Make brand ‘Jamaica’ recognized through the world.

MARKETING STRATEGIES

Creation of advertisement to promote the brand Jamaica worldwide.

Hosting and participating in seminars to inform potential and repeat investors.

Sponsoring and hosting sporting events to showcase our achievements.

Allocate funds to develop the country’s infrastructure.

COMMUNICATION OBJECTIVES

The plan will be sold to the consortium of business and economy including MAJ, JHTA, PSOJ, the Ministry of Industry and Commerce and to other entities. A 2 hour PowerPoint presentation along with video-conference presentation will be use to communicate the plan. There will also be a 1 hour face-to-face meeting to inform the Ministry of Industry and Commerce about the aspects of the plan. After the plan is communicated there must be an understanding and agreement of all entities to implement the plan.

COMMUNICATION STRATEGY

The strategies which will be used to communicate the “Develop Jamaica” plan will be a series of methods, such as:

The language style used

Various colors and pattern to make the PowerPoint presentation attractive

Eye -catching graphic design styles to hold their attentions

Symbols and icons to communicate the objective of the plan. Such as the symbols of the develop Jamaica plan

Photographs of Jamaica and place here are which can be develop to attract stakeholders

TASK 4:BUDGETING AND FINANCING THE “DEVELOP JAMAICA”PLAN

The plan will financing by a grant given the ministry of industry and commerce by the government of Jamaica along with help from some of the entities involved in executing the plan. We will welcome any other investment to help implement the plan. The ministry is in dialog with the Chinese government on negotiations a possible lone option. Also the plan will be fund by all stakeholders involve in the implementation of the plan.

TWO YEAR INCOME STATEMENT FOR YEAR ENDED 2014

The income statement (profit and loss statement) shows the revenue, expenses, and net income (or net loss) for a period of time.

Year 1

Year 2

Revenues

$197,60000

$207,48000

Cost of Sales

121,36590

127,43420

Gross Profit

$762,3410

$800,4580

Accounting

80,000

93,000

Advertising & Promotion

150,000

123,600

Bank Charges

41,496

43,571

Compensation & Benefits

246,643

254,042

Consulting Fees

24,000

0

Insurance

100,000

105,000

Lease – Facilities

336,000

336,000

Legal & Professional

56,000

67,000

Licenses & Fees

50,000

51,000

Maintenance

60,000

61,200

Miscellaneous

18,000

18,3600

Office supplies

27,000

27,5400

Security

72,000

74,200

Telephone

180,000

183,600

Utilities

420,000

441,000

Website

100,800

100,800

  Total Operating Exp.

566,1471

561,1567

EBIDTA

$99,182

$132,135

Depreciation

40,9160

40,9160

Operating Profit

$5153129

$507,0272

Interest Expense

43,19900

40,27400

Earnings Before Taxes

833,229

104,2872

Income Taxes

500,870

400,431

Net Income

$332,359

$642,441

CONCLUSION / RECOMMENDATIONS

Business and society are closely related to each other. Business influences the various aspects of society and the society in turn affects to business. Getting other well-known organizations to invest in Jamaica will benefit the country significantly. Why don’t we think of going an agreement with an organization country to establish a stadium here, where we can host larger sporting events? There and then the country will get significant benefits which will be see an in all the industries and also trickle down in the Jamaican economy.

REFERRENCES/ BIBLIOGRAPHY

: http://businesscasestudies.co.uk/business-theory/strategy/business-strategy.html#ixzz2BTDxNEBm. (n.d.). Retrieved from http://businesscasestudies.co.uk.

Chung, D. (n.d.). : http://www.jamaicaobserver.com/business/a-swot-analysis-of-jamaica-s-economy_8321834#ixzz2Azx5ZqOr. Retrieved from www.jamaicaobserver.com.

Ivan L. Waterman, D. R. (2005). Principles of Business for caribean examination. Macmillan publishers.

T.R. Jain, M. T. (2009-2010). Business Envirinment. Delhi: Rahul Jain.