Executive Summary
Wilsam company ltd is a privately owned company specializing in preparing economic and business reports in Manchester and entire metropolitan regions in England and United Kingdom; Trafford, Stockport, Bolton and Bury just to name a few. The study examined contemporary economic and business strength, weaknesses, threats and opportunities (SWORT analysis) in the region with the aim of helping investors make optimal business decision (Chamberlain 1987, 322).
` The study finding are based on data collected from market research reports, demographic data and governments reports and release. The conclusion made from this analysis; investors can get the highest returns by investing in technology, recruiting and retaining competent staff and striving to tap new markets. Various recommendations have been made especially concerning a need to improve on ethical work conduct and transparency in corporate governance (Bekker 1994, 665).
Introduction
Wilsam considers feasibility and optimality of the economic and business atmosphere in greater Manchester based on market survey and other partners who are custodians of official statistics such as the RSS. It does not conducted empirical research investigating each underpinning details each individual variables of study. However, the company subjects every data received to a strict scrutiny to determine their reliability and limitations.
The primary tenacity the report is to make available any preliminary facts to private companies and investors about: i) The economic and business state of affairs in Manchester and northwest regions of England; and ii) The key business issues depending on the current situations which should be considered maximizing profit and minimizing cost.
In the examinations the following regional statistics for the last five years were considered from European Cluster.
Findings
The viability of carrying out business in the great Manchester city and its neighboring regions is still optimal. The high literacy level and active sectors of the economy indicated by high employment rate is optimal utilization of the economic resources (Bekker 1994, 669). This implies that the cost of doing business is low and therefore investments can yield high returns to investors.
Economic Element in Great Manchester
These are “systems of which shape the business environment. There are both external and internal elements. Considering both local and international market participation in agriculture, automobile, communication and general manufacturing sectors Manchester and the its neighboring cities are doing well (Chamberlain 1987, 329). This give rise to new avenues of investments due to numerous emerging markets. It is however impossible to overlook other international factors that affect the business operations in the regions. These are price fluctuations in the international markets and interest rates. Recently, the dollar fluctuation to other world currency could have an impact of how investments were to be made in Manchester and other European Nations. The fall in prices of oil in the middle East has of the recent past has increased the cost of doing business I the Northwestern England.
Similarly, the effects of the great recession in 2008 have continued be felt up to today. Despite the elaborate European financial systems and institutions, high cost of living has been just unavoidable. Conversely, the fall in demand for goods such as automobile has become a reality. As such, some sectors that one considers to invest their money need a deep financial advisory to hedge the probable risks surrounding the industry in great Manchester today.
Investment in the communication sector for instance is thought to yield better financial returns than any other sector. It is estimated that 3.2% rise in the national GDP is due to ever expanding communication industry. However, the recent statistics from RSS indicate that there is market partition in within the industry that determines the actual returns.
In particular, communication for its own sake is not such a lucrative investment. Facebook usage in European countries has registered a drop for the recent years and this is estimated to drop further still. However, mobile banking has become the real business in the twenty first century. As part of communication industry an investor is better placed to invest their money in mobile banking rather than communication platform such as Facebook, instagram and whattsapp.
Legal and Political Element in Great Manchester
These are governmental elements that may directly affect the business and economic arena due to policy formulations that may promote or reduce business profitability. For instance, the free market economy the larger European nations has given rise to rapid market expansion (Chamberlain 1987, 328). The rate of transporting goods and services across international borders has promoted trade. Since trade increases value of goods for both consumers and producers, it is forecasted that this political decision can be tapped into one beautiful economic policy especially in the metropolitan regions around Manchester.
In 2014, the local authorities constituted employments rules that have direct consequence implication to industry and the associated labour market. The set minimum wage bill motivates workers to be more productive at their work place. On the other had the same bill emphasizes on competence and in-service training. For investors and private companies, this is a good investing moment because there is increased confidence in the goods and services produced from this region in the international market (Anderson 1949, 47).
Technological Element in Manchester.
Competitors
Investors are risk averse. Competitors in the same industry producing similar products or offering undifferentiated services can be a risk to consider. They can cause a terrible collapse of business if there is no preliminary study to understand the competitors’ strategy. Asian countries have featured in the recent past as the main business competitors of the entire European Nations. There is sufficient evidence to justify that the business and economic models being build and used in East Asia by countries such as China, Japan and Korea causes investors in other parts of the world to tread more carefully. The investment strategies and production methods in these countries seem to be taking over the international market in all sectors.
Also, it is important for a prudent investor to realize that Africa and other emerging economies in Asia have offered large market for goods and services produced in European nations. In the recent past, the Chinese especially have taken control of most African countries. Major constructions of infrastructure in Africa are now under Chinese contractors (Bekker 1994, 669). Most automobile and communication devices in this regions are also from China and India. An investor considering to venture into these industries need to understand how to deal with superior competitors from Asia particularly China, Japan and Korea.
Labour Supply.
Based on the evidence presented in the descriptive statistics of this region, there is high literacy level. However, the labour market seem to suffer from lack of technical experts to handle specific economic and financial problems. Market research by (Chamberlain 1987, 332) show that most sophisticated financial experts in the Manchester are people from Asia especially the Chinese. This is not a very good indication of the future unless there is a deliberate effort to change the current trend. Similarly, the case studies across the institutions of high leaning in ten metropolitan cities in northwestern England including Manchester shows that students from these countries avoid computational sciences (Anderson 1949, 48). This is a red flag for the future labour supply in the region
Conclusions and Recommendations
The main question in this study was how investors can and private companies validate their business strategies considering the current economic and business state in Manchester? The study used various market research findings and government bulletins to come up with two major recommendations;
Investors need to understand how to tap new markets for their products and services. This can be done by best understanding the competitor’s strategy
The investors need to find a way of nurturing their talents in the hope of finding competent staff in the future who are ethical and keen on corporate governance issues.
Bibliography
Anderson, T.W. and H. Rubin (1949): “Estimation of the parameters of a single equation in a complete system of stochastic equations,” The Annals of Mathematical Statistics, 20, 46-63.
Bekker, P.A. (1994): “Alternative approximations to the distributions of instrumental variable estimators, Econometrica, 62, 657-681.
Chamberlain, Gary (1987): “Asymptotic efficiency in estimation with conditional moment restrictions,” Journal of Econometrics, 34, 305-334.
