AD002 & IN002: Principles of Business Management 2022-2023

Written Portfolio: Business Environment & Strategy

Due date: October 30, 2022, 23:59 Barcelona time

Type: Individual assignment

SCENARIO
(Disclaimer: The scenario is created for the purpose of this assignment only. Some information
provided may not match the timing of real events in the real world.)

The pandemic caused by Covid-19 has resulted in lockdowns and strict rules in many countries to
curb the spread of the virus. Businesses in all sectors and industries felt the impact when countries
were closed for periods of time. Many business activities were shut down or reduced capacity. Many
companies did not survive and closed their business. Many people lost their jobs or had their
income reduced.

The arrivals of Covid-19 vaccines, notably from Astra Zeneca, Pfizer-BioNtech and Moderna have
helped bring Covid-19 to manageable levels. As countries relax Covid-19 restrictions and
companies return to their business activities, global supplies shortage has been felt across many
sectors and industries. Computer (semiconductor) chips in particular are causing delays in the
production and shipment of many products. Steel shortage also has contributed to slow economic
recovery. Due to increased demand and limited supply, prices have gone up and the waiting time to
receive orders has increased. Inflation has become a real concern where goods and services
become significantly more expensive than in the past.[1][2]

The trade war between the U.S. and China started after a U.S. investigation accused China of unfair
trading practices and intellectual property theft. Tariffs (import taxes) imposed by both countries
have added to the cost of the materials or products causing prices to go up. The automotive and
mobility, energy, consumer, chemicals, engineering and manufacturing, life sciences and
healthcare, retail, and agricultural sectors are all impacted.[2] Many American international
companies have to move their production out of China and re-establish their supply chain, further
causing disruption to their business. Regulatory burdens such as customs clearance and increased
inspection caused by the trade war present another barrier for companies. While the U.S.-China
relations are worsened, the ties between the U.S. and Taiwan are strengthening. Home to some
dominant semiconductors such as TSMC, the largest chip manufacturer in the world, Taiwan has
become a major player in the global chip shortage. Change in trade relations affecting businesses
does not limit to just the U.S. and China. The EU has recently reviewed its strategic dependencies.
One aim is to diversify its production and supply chains. The EU has also strengthened its
relationship with Taiwan. Some innovative European companies have no other choice but to turn to
TSMC for computer chips that they need.[6][7]

The impact of globalization has been more acute during the pandemic. What happens in one
country also impacts the supply of other countries and their companies. The shutdowns of many
manufacturing facilities in Vietnam due to the recent outbreaks, for example, have added to the
delay of production and shipping of products manufactured there.

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There is also a shortage of workers. In the U.S., for example, some businesses only operate on
limited capacity due to the lack of workers. Truck-driver shortage is spreading to the EU, further
delaying the transportation and distribution of materials and products. Warehouse workers are
critical in receiving, handling, storing and dispatching inventory for delivery.[3] The shortage of
warehouse workers adds to the delay of unloading of shipping containers, which in turn, delays
those shipping containers getting to the next destinations to be shipped out again.

In some countries, the governments put in place good infrastructure and technology to help manage
the arrivals and departures of shipping containers. For example, in Rotterdam, Europe's largest
port, companies involved in a cargo vessel's arrival see the same information on a common data-
sharing platform called "PortXchange".[5] This helps Rotterdam port to manage its cargo arrivals
and departures better than many countries including the U.S.

In August 2022, the U.S. government issued a new law called CHIPS and Science Act with a $53
billion subsidy to help U.S. semiconductor firms to build their products in the U.S. instead of in
South Korea, Taiwan, or China. President Biden said, "The CHIPS and Science Act supercharges
our efforts to make semiconductors here in America. America invented the semiconductor, and this
law brings it back home." [6]

As people learn to live with Covid-19, their demand for goods and services increases. 5G
technology, Artificial Intelligence (AI), and other technological advances have changed consumers’
taste and demand for some products and services. Those who have been able to keep their
employment are often in the high-paying jobs, allowing them to afford luxury goods and services
that often depend on semiconductor chips to function.

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ASSIGMENT
This assignment tests your understanding of frameworks and knowledge covered in the course and
how you apply them to a real business scenario. This assignment is NOT designed to test your
ability to rewrite analysis done by someone else and easily found on the internet. It means that you
need to do your OWN analysis.

Chose a company (company A) below. You CANNOT choose a different company outside of these
four companies.

• Nissan (automobile industry)

• General Motors (GM) (automobile industry)
• Sony (electronic industry)
• Nintendo (electronic industry)

QUESTIONS TO ANSWER AND ANALYZE IN YOUR PAPER:

I. Environmental analysis
Provide an environmental analysis on the industry chosen (how would the information
provided in the scenario impact the industry?). Provide examples from the scenario to
support your analysis.

II. Company-specific
Provide an internal environmental analysis specific to company A (the company that you
have chosen above). Research supporting your work regarding the chosen company must
be done within the last three years.

III. Organizational Strategy

[You may use the information provided in the scenario as well as from your research on
company A to support your analysis in Part III.]

a. What are competitive forces that may impact company A (are these competitive forces
high, medium, or low)? Explain.
b. What strategy (or strategies, no more than two) that company A has been using to
manage these environmental factors and to stay competitive? What are the competitive
advantages that support this strategy? Explain.
c. Are there disadvantages that may potentially impact company A’s competitiveness?
Explain.
d. Compared with the other company in the same industry (Nissan vs. General Motors
(GM), or Sony vs. Nintendo): Has the other company been using the same or different
strategies as company A? What are the main similarities and differences between these
two companies in their strategies? Explain.
e. As company A looks forward into the future, what are some opportunities and/or threats
that it should be aware of? Explain.
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How to do this assignment:
1. Read the scenario above carefully and use the information in the scenario (unless instructed
otherwise) to answer the questions and do your analysis.
2. Review the materials covered in class to answer the questions. Apply knowledge and
theoretical frameworks to the assignment.

A good paper consists of a thoughtful analysis directly referencing the topics, lessons, and tools
covered in class. Specific examples from the scenario as well as from your research are required to
support your points throughout. A good paper has an introduction and a conclusion. You may create
visuals and graphics as appropriate to strengthen your analysis.

This is an individual assignment, so this must be your own work.

• You may research the company on the internet, but you must NOT use specific words such
as “CompanyName PESTLE,” etc. and rewrite the analysis already done by someone else.
• No collaboration with other students is allowed. If you have questions, please ask your
professor.

____________________________________________________________________________

DUE DATE & SUBMISSION

Due date:
October 30, 2022, 23:59. Late submission will not be accepted except in extreme situations and
when approved in advance by the professor.

Submission:
PDF format in eStudy. Do not email your professor your assignment.

If you have technical difficulty with eStudy, you must take the screenshot that shows the problem
and email it along with your paper. Your email must arrive before the due date and time.

Word Count:
2500-3000 words (excluding Bibliography/References)

Note: The word count serves as a guide to help you with the length and depth of the paper. Your
assignment should have the quality and depth needed and not be meeting the wordcount.

Format
• Front page with your name, the name of the company chosen, word count
• Naming your file to upload in eStudy: FirstName LastInitial – Company
(For example: Olivia C – Nissan).

Not following the format required, including submission in PDF, will result in deducted points.

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Research & Citation
Perform research as needed to support your analysis. At the minimum, you should have three (3)
different sources/references (not counting resources available from the lectures). References must
come from credible and respected sources. Student websites such as study.com, ukessays.com, as
well as wipipedia.com are not acceptable sources. Citation and references should follow Harvard
Reference Guide (see the Resources section in eStudy).

RULES REGARDING PLAGIARISM

ALL work must be your own work in your own words (that means you cannot take work done by
someone else and put them down as your own). Information from external sources must be cited.
Direct quotes should be used sparingly and fully credited and should never be more than a few
sentences. A paper based on external information but without citation and references will be
considered not your own work. Copying and pasting from external sources are considered
plagiarism and will earn you a failing grade. Disciplinary action will be taken in case of plagiarism.

This is an individual assignment. No collaboration with other students is allowed. If collaboration

with other students is found, your assignment will be considered not your own work and plagiarism
has been committed by those involved. Disciplinary action will apply to ALL parties involved. If you
have any questions, you should ask your professor.

By proceeding with the assignment and submitting it in eStudy, you confirm that you have
read and agree to abide by the rules and instructions above.

AD002 & IN002: PBM 2022-2023 – Written Assignment

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