Why a Company May Fail or Succeed in the Business Venture
One will need to look into the internal principles that the company operates with. These principles are the core of the business and part of the culture of the business. The internal components are how the company will identify opportunities, the process of seizing these opportunities and how they transform themselves to better serve the consumers of their products or services. On the other hand, it is important to look into the external factors which affect the business. No business operates in a bubble where all factors are suitable for it success. Among some of their products is warehouse management for their clients who have large inventory and products and therefore require large warehouses for storage. Riverwood’s products provide a management system integrated with the inventory and sales department of the client company.
Riverwood has identified itself as an industry leader in logistics by going the extra mile in ensuring that their clients reap the most benefits from an efficient logistics system. As a company Riverwood will not only provide movement services for their client’s goods, they will assess the challenges encountered by their clients and come up with a wholesome solution for their challenges. Riverwood Ltd. Therefore, a company will need to articulate the variations of the business. However due to the ever-changing situations in this factors a company has to consistently conduct this analysis so that they will not be blindsided by any occurrences that may result in a shift in the market (Yüksel, 2012). POLITICAL ANALYSIS The political environment in Singapore has been the most consistent in comparison to other Asian countries and the world in general.
This is due to the political stability brought about by the good leadership provided for by leaders such as the late former Prime Minister Lee Kuan Yew and the current President Halimah Yacob. As a result of this consistency the country has experienced periods of peace free from any civil wars and political problems. Riverwood is among these company’s which has benefited from the economic state of the country. From a company with four employees, the company has developed into a company generating an annual income of up to 6 million dollars per annum. Other economic factors which promote the business growth in Singapore are its taxation policies. The average corporate tax for companies and Asia ranks at between 25%-30% of the companies’ profits.
However, the Singaporean government requires a corporate tax of 17% per annum (Tradingeconomics. Therefore, as a result of avoidance of corruption the companies maintain an element of trust with the government and the customers respectively (U-Wen, 2017). Age is another age factor that is influencing the companies; the concept of age has different repercussions to the success and failure of the companies. One approach is the reducing workforce which influences how companies operate. Demographic data as of 2017 indicates an increasing population of citizens exceeding 65 years by 0. 7% (Singapore Department of Statistics, 2017). Air infrastructure and water transport infrastructure is essential in ensuring that there is good coordination. The government of Singapore has intensively invested in quality infrastructure in terms of good road transport networks, state of the art airports such as Chang airport and effective ports such as the Jurong Port with 32 berths (Lam, 2017).
LEGAL The legal factor is based on the laws and legislation passed by a country’s authorities and legislators. Singapore is commended as one of the countries’ in the world with laws that are suitable for setting up businesses. Beginning with the relatively low tax schedules for the companies, the process of starting a company in the country is not hard and any citizen with a good idea can register a company. Lastly, the issue of ambiguity affects the company as the sector in which it operates is increasingly attracting many players with different business models. For instance, the use of blockchain technology is likely to disrupt the industry. PORTER’S 5 FORCES 1. Competitors Riverwood has grown to challenge the traditional courier delivery services such as DHL and FedEx.
Their use of technology and innovation has ensured they have been able to curve a niche in the logistics industry. Additionally, Riverwood have completely covered all the modes of transportation available therefore a substitute may have to utilize a different transportation tool such as drone technologies. Power of Buyer In the business of logistics, the component of the buyer and the supplier is based on who is paying for the service since logistics is not a good. In this case, Riverwood is normally in contract with the e-commerce company of whom they deliver their products to the buyers of the goods on the ecommerce site such as Ebay or amazon. Therefore, the ecommerce site which purchases the logistic services from Riverwood dictates the timelines and operation of Riverwood depending on the number of orders to be made for deliveries.
The buyer is quite powerful in determining the price of the service and usually bases their payments on the economies of scale. Riverwood’s has a wide network of vehicles and relationships with cargo airlines 4. Riverwood utilizes Global Positioning Systems for the successful location of the orders to be delivered. Riverwood has a business model which serves to specially cater for every client’s needs. Riverwood has a proven work ethic and brand personality 2. Weaknesses 1. Change in international laws and tariffs between the East and the West may influence the ongoing and future contracts between Riverwood Logistics Company and foreign (Western- American & European) companies. Change in international leadership may result in different trade ties bein put in place which will reduce their international foot print.
VALUE CHAIN ANALYSIS Value Chain Analysis is a concept that was introduced by Michael Porter to evaluate the process of coming up with a product. This system looks into every stage that a product goes though till it gets to the final consumer. It assesses the costs implication of every step of the product’s value chain (Walters and Rainbird, 2004). Industries utilize technology in majority of their operation. The existence and growth of artificial intelligence is being utilized in the country’s industry. In due time, artificial intelligence and robotics will be utilized and therefore companies will have to be innovative in order to remain competitive (Jianyue, 2014). Conclusion Riverwood Logistics is one of the leading companies in Singapore in terms of logistics and transport.
Although the company aims to grow and dominate the market in Singapore, there still exist political, economic, social, economic and legal factors. com/921336/singapore-may-be-small-but-it-is-quickly-becoming-a-massive-global-tech-hub/ [Accessed 11 Aug. Chua, C. Singapore Business Law - Top 10 Legal Tips for a Small Business in Singapore. [online] Hg. org. bbc. com/news/business-32028693 [Accessed 11 Aug. Jianyue, X. ‘Smart’ Singapore will use technology to improve lives. [online] TODAYonline. Tech in Asia - Connecting Asia's startup ecosystem. [online] Techinasia. com. Available at: https://www. techinasia. [online] The Geography of Transport Systems. Available at: https://transportgeography. org/?page_id=3924 [Accessed 11 Aug. Singapore Department of Statistics (2017). Population Trends 2017. Available at: https://www. pwc. com/gx/en/transportation-logistics/pdf/the-future-of-the-logistics-industry. pdf [Accessed 11 Aug. Tradingeconomics. sg/government-economy/protect-singapores-legacy-of-corruption-free-system-pm-lee [Accessed 11 Aug. Walters, D.
From $10 to earn access
Only on Studyloop