Business Environment Report

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Business Environment Report

By | March 2008
Page 1 of 8
Introduction to Assignment

This report discusses the potential growth of Space Airconditioning plc within the Airconditioning industry, by taking advantage of converged networks and how their implementation could result in a competitive advantage.

“Space's long term strategy has always been to develop the UK market from a position of strength via technical knowledge, experience and sound financial management, supported by Daikin’ technical expertise and long term vision.” (Space Airconditioning plc, 2007)

It is with this Mission Statement in mind and, in particular, trying to maintain an advantage by harnessing new technologies and adapting them to offer emerging applications, cost savings and productivity enhancements. This statement clearly communicates our raison d’être and highlights our explicit objectives but whilst primarily important, there are further implicit objectives that Space Airconditioning strive to pursue. These being, the importance of being fair to our employees and act responsibly for them and for our customers.

One area that we can assist in acting fairly and responsibly, is by putting systems in place that aid employees and customers. For instance, offering the salesperson the ability to work remotely rather than commuting to the office every day. “implicit objectives do not oppose the primary objectives, they usually complement it and help towards its accomplishment” (Campbell et al, 2007:32)

Management at Space Airconditioning are challenged with maintaining (or even reducing) costs, whilst at the same time increasing innovation, capacity, employee productivity and security. A converged network can have a major role to play in delivering solutions to these key issues. Discussion


According to Porter (2004:6) the likelihood of firms making profits in a given industry depends on five factors, “Entry, threat of substitution, bargaining power of buyers, bargaining power of suppliers and rivalry amongst current...

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