CLASS ASSESMENT- 1

COURSE CODE - MGNM 578

NAME OF THE FACULTY MEMBER - DR MURAMALLA VENKAT

COURSE TITLE - INTERNATIONAL BUSSINESS ENIVORNMENT – I

CLASS- MBA Q2144

SUBMISSION DATE - 3rd OCTOBER, 2021

STUDENT NAME - MUSKAN CHAWLA

ROLL NO- RQ2144B52

REG. NO. - 12108169

REPORT

ON

COMPANY- SAS INSTITUTE

COUNTRY - FINLAND

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 ABOUT THE COMPANY
INTRODUCTION
SAS INSTITUTE
SAS institute is a multinational developer of analytics software based in Cary,
North American Carolina. SAS Institute incorporated in 1 July 1976 by Jim
goodnight who is still leading SAS as CEO. SAS institute is the part of the
professional and commercial equipment and supplies merchant wholeseller
industry. SAS is the leader in the analytics. It develops and market suite of
analytics software which helps in access, manage, analyse and report on data to
aid in decision – making. The company is the world’s largest privately held
software business and its software is used by most of the fortune 500. SAS
Institute has become the private business statistical analysis system.

It develops, supports and markets a suite of analytical software which captures,

stores, modifies, analyse and presents data. SAS software include analysing
financial transaction for indication of fraud, optimising prices for retailers or
evaluating the results of clinical trials. It is the largest market share holder in

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 advanced analytic segment with a 36.2 % share and fifth largest for
business intelligence software with 6% share.

Products – SAS is the largest set of products it is line for customer intelligence.
Numerous of the SAS modules for web, social media and marketing analytics
may be used to profile customer and prospectus, predict their behaviour and
manage and optimise communication. SAS also provides the fraud framework.
There is also SAS risk management product set designed primary for banks and
financial service organization. It performance management product consolidate
and provide graphical display for key performance indicators at the employee,
department and organizational level.

FINANCIAL RESULTS (2020)-

By the end of the quarter SAS completed the successful recapitalisation adding
SEK 12 billion in liquidity and SEK 14.25 billion in strenghthened equity.
REVENUE: 3035 (13,435)
INCOME BEFORE TAX: MSEK -3,271 (1,096)
INCOME BEFORE TAX AND ITEMS AFFECTING COMPARABILITY: MSEK -3043
(1,226)
NET INCOME FOR PERIOD: MSEK -2579 (861)
EARNING PER COMMON SHARE: SEK -4.46 (2.19)

HISTORY OF ENTERING INTO FOREIGN MARKETS

SAS institute Inc. a private company devoted to the maintenance and further
development of SAS. The company was incorporated in March 1976, and
opened for business July 1 at 2806 Hillsborough St. across from the university.
As the staff grew, so did the list of customers. By 1978 there were 21 employees
and 600 SAS customer sites. The primary focus, then and now, continues to be
on, meeting customer’s needs. Within a year of incorporation, SAS was
recognised for its outstanding software when datamation magazine named the
company to the data pro software Honor roll. It continued to appear on that list
for next 3 years.
In 1979, SAS granted its first overseas licence software to Databank
New Zealand, and SAS software was adapted to run under IBM’s VM/CMS
system. In 1980, SAS broke new ground with the release of SAS/GRAPH for
presentation graphics and SAS/ETS for econometric and time series analysis. Our
first subsidiary, SAS software limited in the United Kingdom, also opened.
New headquarters in1980 SAS staff of 20 moved from
Raleigh to its present headquarter in Cary, NC. A flexible work enivornment and

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 perks such as free M&M’S and breakfast goodies highlighted the
company’s belief in every employee’s value.

COMPETITOR ANALYSIS:
SAS has three prominent competitors in foreign market:

1. IBM
2. MICROSOFT
3. SAP

1.IBM –International business machine corporation is an American

multinational technology corporation headquartered with operations in over
171 countries. IBM is famous for relatively inexpensive, compact, and easy to
operate. The IBM 650 quickly become the most widely used computer for
business application. IBM’S speciality was mainframe computers i.e. expensive
medium to large-scale computers that could process numerical data at great

speeds.

2. MICROSOFT- It is an multinational technology corporation which produces

consumer electronics, computer software, personal computer and related
services. It is the biggest software company in the world. The company target
on more than one customer segments at the same time with different product

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 and service packages.

3. SAP - SAP is a German multinational software corporation that develops

enterprise software to manage business operation. The company is specially
known for its ERP software. It is 3rd largest software and programming company.
The company mainly focuses on ready to run, integrated, tool-supported
methodology to manage requirements and software development in large.

EXPANSION PLAN
Just two weeks after SAS Institute Inc. reportedly backed out of talks to be
acquired by Broadcom Inc., the company today issued a statement saying it
plans to go public in 2024.

The company said it will begin to take preparatory steps like refining its financial
reporting structure, streamlining certain operational processes and focusing on
growth markets. SAS, which is already considered one of the biggest players in
data analytics, said it will continue to invest heavily in that area. The company
boasts of being the only vendor to be named a leader in Gartner Inc.’s Magic

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 Quadrant for data science and machine learning platforms all eight of
the years the report has been published.

SAS said it generated approximately $3 billion in revenue in 2020 and has grown
8.4% in the first half of this year.

The company is still led by James Goodnight (pictured) and John Sall, who
founded it in 1976. Goodnight owns about two-thirds of SAS shares and Sall one-
third, according to Forbes. While both men are multibillionaires, much of their
wealth is tied up in equity in the business. At 78 and 73, respectively, there has
long been speculation that Goodnight and Sall would seek more liquidity for the
purposes of estate planning.

Going public is better than selling out for a company with a storied history like
SAS, said Boris Evelson, vice president principal analyst at Forrester Research
Inc. “SAS is a very well-known, popular brand name. An IPO assures that the
brand name lives on,” he said.

The company’s unique culture, which features generous benefits and a strong
focus on work-life balance, also has a better chance of being preserved, Evelson
said. “Changing corporate culture due to acquisition would be challenging. An
IPO would leave company culture as is,” he said. “An IPO also allows most SAS
employees to concentrate on products and customers and not be distracted
with post-merger integration.”

This isn’t the first time SAS has announced plans to go public. It did so in the
spring of 2000 when the dot-com speculation craze was at its peak. The firm
wisely shelved those plans before the market crashed just months later.

FUTURE STATEGIES :-
The just-concluded SAS Institute analyst summit provided the annual update on
the company’s performance, strategy, products and customers. My analysis of
last year’s event talked about its continuation of its product roadmap to new
customer acquisition and the broadening of its underlying platform, applications
and vertical solutions. SAS is no small-time mover and shaker when it comes to
the analytics industry; it extends from technology to tools and applications
across industries, which adds up to $2.4 billion in revenue. SAS’s growth was
worldwide, with Canada and Asia-Pacific delivering the largest percentage
revenue growth and Europe, Middle East and Africa representing the largest

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 revenue for the company at more than $1 billion in revenue; U.S.
revenue came in slightly lower.

Just as important for this software giant is its success in advancing new sales,
which were up 20 percent, a sign that it has been able to reach beyond its core
customers that have been leasing SAS for decades. The largest part of SAS’s
revenue (42%) comes from the financial services industry, followed by
government with 15% and services industries representing 11%. But many do
not realize that SAS has been expanding its offerings by making them easier to
access via the cloud, an area in which it grew by 34 percent in 2010, contributing
significantly to the growth in its core of analytics and fraud. SAS has prided itself
for many years on its focus on employees, earning an industry #1 rating as a
place to work. But its focus on customers and products has earned it high ratings
as well as SAS has invested in improving the usability of its broad portfolio.

In defining its core business strategy for 2011, SAS has set five global priorities:
analytics, customer intelligence, data management, risk and fraud. These
priorities reflect the areas where SAS found the largest growth in 2010: in the
Americas, customer intelligence grew by 229 percent, risk management by 111
percent, fraud by 241 percent, and its focus on Data Flux for Data Management
grew globally by 29 percent. All of these are areas of comfort for SAS, areas
where it has market growth and deep competencies. Speaking to the analyst
summit about his company’s technology strategy, CTO Keith Collins outlined
focuses on high performance computing, process automation, business
visualization, data management and software as a service. All of these are
unquestionably important; I hope that SAS also investigates the value of
introducing new collaborative methods for person-to-person and person-to-
group interactions of the kind we have seen from the likes of Salesforce.com
with Chatter and Success Factors with Cube Tree. All systems used for business
should be able to support collaborative interactions that can draw on its
workforce’s knowledge and experience to maximize value.

SAS is continuing to develop the framework of its core of business analytics on

which it has been working for 30 years. It stretches across data mining,
forecasting, modelling, scoring and simulations all the way to advancements in
supporting text and sentiment analysis. SAS also has gotten a lot better in
discussing the business use of its algorithms and how they can be
operationalized into activities and process. This analytics core is the foundation
of its business; on it rests the layers of integration with information and data
architectures across an enterprise.

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SAS has invested significant time in making its analytics more accessible to stand
as an alternative to other data-centric computing technologies like Teradata and
new players like Aster Data which was just acquired by Teradata, Netezza which
was acquired by IBM and Greenplum, acquired by EMC. SAS is betting these
investments in high performance computing.

SWOT ANALYSIS:-
The four key elements of SWOT analysis are- Strengths, Weaknesses,
Opportunities & Threats. SAS Phantom can use strengths to create niche
positioning in the market, can strive to reduce & remove weaknesses so that it
can better compete with competitors, look out to leverage opportunities
provided by industry structure, regulations and other development in external
environment, and finally make provisions and develop strategies to mitigate
threats that can undermine the business model of SAS Phantom.

STRENGTH:-
Strong relationship with existing suppliers – As an incumbent in the industry,
SAS Phantom has strong relationship with its suppliers and other members of
the supply chain. According to Jeffrey Pfeiffer, the organization can increase
products and services by leveraging the skills of its suppliers and supply chain

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 partners. Strong Balance Sheet and Financial Statement of SAS
Phantom can help it to invest in new and diverse projects that can further
diversify the revenue stream and increase Return on Sales & other metrics.

WEEKNESS:-
1. Track record on environment consideration is not very encouraging – SAS
Phantom track record on environmental issues is not very encouraging.
According to Jeffrey Pfeiffer, this can lead to consumer backlash as customers
are now considering environmental protections as integral to part of doing
business.

2. Organization Culture – It seems that organization culture of SAS Phantom is

still dominated by turf wars within various divisions, leading to managers
keeping information close to their chests. According to Jeffrey Pfeiffer of SAS
Institute a different approach to Incentives and People Management Practices
in the Software Industry case study, this can lead to serious road blocks in future
growth as information in silos can result can lead to missed opportunities in
market place.

OPPORTUNITY:-
1. Increase in Consumer Disposable Income – SAS Phantom can use the
increasing disposable income to build a new business model where customers
start paying progressively for using its products. According to Jeffrey Pfeiffer of
SAS Institute: A Different Approach to Incentives and People Management
Practices in the Software Industry case study, SAS Phantom can use this trend to
expand in adjacent areas Human resource management, Motivating people,
Organizational culture, Technology.

2. Lucrative Opportunities in International Markets – Globalization has led to

opportunities in the international market. SAS Phantom is in prime position to
tap on those opportunities and grow the market share. According to Jeffrey
Pfeiffer, growth in international market can also help SAS Phantom to diversify
the risk as it will be less dependent on the domestic market for revenue.

THREAT:-

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 1. Credit Binge post 2008 Recession – Easy access to credit can be over
any time, so SAS Phantom should focus on reducing its dependence on debt to
expand. The party has lasted for more than a decade and rollback from Fed can
result in huge interest costs for SAS Phantom.

2. Increasing costs component for working in developed market because of

environmental regulations – SAS Phantom has to deal with these costs as
governments are trying to levy higher environmental taxes to promote cleaner
options. For SAS Phantom it may result into higher logistics costs and higher
packaging

PESTLE ANALYSIS
PESTLE analysis on the SAS institute on its business tactics. SAS pestle Analysis
examines the various factors like political, economic, social, technological, legal, &
environmental factor. The pestle analysis highlights the different extrinsic
scenarios which impact the company.

PESTLE analysis is the framework which is imperative for companies such as SAS,
as it helps to understand market dynamics & improve its business continuously.
PESTLE analysis is also termed as PESTEL analysis.

Let’s start the SAS institute pestle analysis:-

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 POLITICAL FACTOR:

The political factor in the SAS PESTLE analysis can be explained as follow:

1. ROLE OF LOCAL GOVERNMENT:-

The local government are highly influential in the policy making process and
implementation as most policies and regulation are implemented by the local govt.
as enforcement agencies mostly report to local government in their own states
regarding various law.

2. ROLE OF NON-GOVERNMENT-The country has a vibrant civil society

community and SAS intelligence should build bridges with them and seek
out areas of co-operations. Civil society groups are influential not only in
policy making but also in building a society wide narrative.
3. Unrest within the Country & Chances of Civil Unrest – We don’t think that
SAS Intelligence business operations are facing any dangers from any kind
of civil unrest or internal militant operations in the country.
4. Regulatory Practices - The regulatory practices are streamlined with global
norms which have helped the country to improve its “ease of doing
business” ranking.
5. Government Regulations and Deregulations – The government is adhering
to all the rules and regulations under World Trade Organization norms.
There is consistency in both policy making and implementations of those
policies.
6. Political Governance System – Based on the information provided in the SAS:
Leadership in Business Intelligence case study, it seems that the country
have a stable political system. SAS Intelligence can make strategies based on
the stable political environment.

ECONOMIC FACTOR:

Economic factors of a country and region have a direct impact on the potential
attractiveness of a given market. Some of the economic factors that SAS
Intelligence should evaluate both in the present market and one in which it wants
to enter are – inflation rate, GDP growth rate, disposable income level etc.

1. Inflation Rate – The inflation rate can impact the demand of SAS Intelligence
products. Higher inflation may require SAS Intelligence to continuously
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 increase prices in line of inflation which could lead to lower levels brand
loyalty and constant endeavours to manage costs. Cost Based Pricing could
be a bad strategy under such conditions.
2. Work Force Productivity – Work force productivity in US has grown by 25-
30 % in last two decades even though the salaries are not reflecting those
gains. It can enable SAS Intelligence to hire skilled workforce at competitive
salaries.
3. Price Fluctuations in both Local and International Markets – Compare to the
level of quantitative easing in last decade the prices of SAS Intelligence
products and prices of overall products have remained sticky in the US
market. SAS Intelligence should consider the fact that at deficit levels of
United States in an emerging economy can lead to rampant inflation and
serious risks of currency depreciation.
4. Level of Household Income and Savings Rate – Increasing consumption and
stagnant household income in United States had led to credit binge
consumption. It has decimated the culture of savings as people don’t have
enough to save. SAS Intelligence needs to be careful about building
marketing strategy that is dependent on “Purchase on Credit” consumer
behaviour.
5. Demand Shifts from Goods Economy to Service Economy – The share of
services in the economy is constantly increasing compare to the share of
manufacturing, goods, and agriculture sector.
6. GDP Trend & Rate of Economic Growth – The higher GDP growth rate signals
growing demand in the economy. SAS Intelligence can leverage this trend
by expanding its product range and targeting new customers. One way to
start is by closely mapping the changes in – consumer buying behaviour and
emerging value proposition.

SOCIAL FACTOR:
Social factors such as demography trends, power structure in the society, women
participation in workforce etc. have immense impact over not only the country's
economy but also on workforce talent availability and level of consumer demand.

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 1. Attitude towards Authority – Various cultures in different part of the
world have different attitude towards authority. In Asia authority is
respected while in west it is something to rebel against. SAS Intelligence
should carefully analyse the attitude towards authority before launching a
marketing campaign for its products and services.
2. Education Level in Society – Education level of the society impacts both the
quality of jobs and level of income. High level of education often results in
better jobs, higher income and higher spending on complex and aspirational
products.
3. Level of Social Concerns & Awareness in Society – Higher level of social
concerns in the society often result higher consumer activism and pressure
from non-governmental organizations, & pressure groups.
4. Types of Immigration & Attitude towards Immigrants – Given the latest
developments such as Brigit and Immigrant detention on Southern border
of United States. Attitude towards immigration has come under sharp focus.
SAS Intelligence should have capabilities to navigate under this hyper
sensitive envirornment.

ENIVORNMENTENTAL FACTOR:
Environmental factors are fast gaining traction not only among consumers but also
among regulators and policy makers. Climate change and changing ecosystem is
leading to the extinction of more than 20% of species on the planet by the turn of
this century.

The impact of Environmental Factor:-

1. Influence of Climate Change – How climate change will impact SAS Intelligence
business model and supply chain. For example if the supply chain is not flexible it
can lead to bottlenecks if shipments from one part of the world are delayed
because of sudden climate shift.

2. Corporate Social Responsibilities Culture – Are SAS Intelligence present CSR

efforts applicable in the new market or does it needs to have new initiative to cater
to the prospective market.

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 3. Paris Climate Agreement and Commitment of National Government
under the Agreement – What are the commitments of the country under the
Paris Agreement and what is the general level of consensus regarding Paris
Climate Agreement in the country. For example Trump not standing by US
commitments created an environment of uncertainty.
4. Waste Management – What is the policy of waste management in the
prospective market and how SAS Intelligence can adhere to the waste
management requirements in that market.
5. Influence and Effectiveness of Environmental Agencies – T role of
environment standards enforcement agencies is critical in safeguarding norms.
But often in emerging countries these agencies delay the process as a tactic to
extract bribes. SAS Intelligence should be aware of presence of such practices in
a country.

LEGAL FACTOR:
Factors often govern – conditions to enter the market, laws to operate in the
market, and procedure to resolve any dispute with other stakeholders. If the
legal system is not strong then SAS Intelligence can face numerous challenges
from consumer petitions to shakedowns from authorities.
1. Independence of Judiciary and Relative Influence of Government – The
judiciary independence often reflect both strength and credibility of the
institutions in the country.
2. Adherence to Common Law – Is the country following common law which
is uniform for all parties – whether domestic or international. If there is
arbitrariness in the judicial process then SAS Intelligence can’t be sure of
the judgments.
3. Laws regarding Monopoly and Restrictive Trade Practices – As a new player
SAS Intelligence shouldn’t be worried about the monopoly and restrictive trade
practices law.
4. Intellectual Property Rights Protection – SAS Intelligence should assess the
level of protection that intellectual property rights get under the legal system of
the country.

5. Business Laws – Before entering into new market – SAS Intelligence has to
assess what are the business laws and how they are different from home
market.

6. Securities Law – What are the securities law in the country and what are the
conditions to list the company on national or regional stock exchange.

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 7. Employment Laws – What are the employment laws in the country
and are they consistent with the business model of SAS Intelligence. For example
Uber employment system is not consistent with French laws and it is facing
challenges in the country.

NEWS-
1. SAS Plans An IPO After Cancellation Of Rumoured Acquisition, Strengthening
Its Position In The Global Analytics Market.
2. SAS an enterprise fraud management Leader, says research firm.
3. Curiosity powers SAS' biggest brand move in 20 years.
4. SAS accelerates sustainability and improves global outcomes through social
innovation.
5. SAS delivers free analytics training for COVID researchers.

CONCLUSION:-
SAS initially designed to complete statistical analysis but now it is also used for
analytics. It is mainly used for processing complex raw data into meaningful
information. This meaningful information helps an institution to make better
decisions. It is also helpful to us to compile, analyse and extract data from
various resources. It does the processing, cleaning, digging, and packaging for
statistical people. In general, the SAS tool is playing a crucial role in statistical
analysis and decision-making. But here we are presenting some specific fields
that primarily use the SAS software. This information enables developers of
applications that take advantage of concurrently accessed data to write those
applications to use the available computer resources in the most efficient ways
possible.

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