Question

In: Economics

Managers at your firm are very concerned about the influence of terrorism on its long-term strategy....

Managers at your firm are very concerned about the influence of terrorism on its long-term strategy. To counter this issue, the CEO has indicated you must analyze the countries in which terrorism and political violence is minimal. As this will provide the basis for the development of future company facilities, a detailed analysis for these countries is required. Once completed, include recommendations which justify locating future operations to specific countries with little risk of terror activities.

Solutions

Expert Solution

Answer: Strategic planning could be a management tool that guides the business to perform better and ways of future success. Future plans are the general goals of the company. political conditions like general stability and peace within the country and specific attitudes that elected government representatives hold towards business. The imperatives of political conditions in business success lie in the predictability of business activities under stable political conditions. On the opposite hand, there may be the uncertainty of business activities because of political unrest and threats to law and order. Political stability, thus, builds up confidence among business people to speculate within the future projects for the growth of the economy. Political instability can shake that confidence. Similarly, the attitudes of state officials towards business may have either a positive or negative impact upon business

The countries in which terrorism and political violence is minimal. As this will provide the basis for the development of future company facilities, a detailed analysis is given below:

  • The company can check the current terrorism trend in the global terrorism report in which countries like Austria, Norway, Sweden, Japan, Denmark, Australia, Germany, Canada, Switzerland, North America is also least affected by terrorism.
  • These above countries are politically stable countries where long-run plans are created
  • politically stable countries can provide a number of benefits in terms of many opportunities
  • Insurance, FDI, trade, tourism will get the boost as now investors are able to take risks. tourism can also be increased as people plan more holidays within stable countries that provide opportunities to tourism industry.
  • companies may receive more resources within the stable country which they can utilize efficiently and acquire maximum benefits.
  • they get maximum permit licenses to figure in several regions and states.

A recommendation which justify future operations to specific countries with little risk of activities:

  • To justify future operations to specific countries measure country risk by credit rating to see their ability to repay their debt. A country with a higher credit rating is considered a safer investment than a country with a lower credit rating. it is a superb way to investigate a potential investment.
  • check all the economic factors which are feasible for the company to operate in specific country.
  • check the all demographics while operating the future plans.

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