EEIG case, on alliances Essay Example | Topics and Well Written Essays - 2000 words

EEIG case, on alliances - Essay Example A. (QA) (Fazio, 2007). The target markets for this establishment were multinational paint manufacturers and automobile manufacturers. The present case entails about the management of EEIG and also the perspective and situation after its incorporation. In addition, this case also illustrates about the strategies adopted by these companies to operate in the market. This study to a large extent enlightened us about the Quimica del Atlantico, S. A. (QA) and its business operations. This company was founded in the year 1932. It is headquartered at Baracaldo, Spain. Initially the company used to manufacture nitrocellulose paints, and air drying for the automobile body parts. It was also the first company to have supplied such products to the markets of Spain (Renart and Pares, 2010). The company had spent significant amount of resources and efforts towards research and development and for that the company has been able to introduce new products and services in the market. Through this repo rt, the internal and external business environment of the company will be analysed. Furthermore the strategic choices made by the companies will be also illuminated. Beside, how the strategies were implemented will be also emphasized. Finally based on the evaluation, a conclusion will be drawn and some recommendations will be suggested. External & Internal Business Environment Analysis Environmental analysis is often referred to as environmental scanning. According to some eminent authors analysis of the environment help companies to identify factors that may influence the operation. Additionally, it also helps the companies to forecast the impact these factors have on the company (Robinson, 2009). Through the process of environmental scanning organizations also identify opportunities and threats in the existing business environment. The business strategy of a company also remains highly dependent upon the situation of the external business environment. Apart from the external envir onment, the internal environment of a firm plays a crucial role in the formulation of strategy and also to capitalize on the opportunities of the external business environment (Von Der Gracht, 2008). In this context, Quimica del Atlantico, the paint manufacturing and marketing company of Spain embraces various strategic capabilities. However it also possesses some weakness which impacts the company’s operation and holds them back from achieving their goals. One of the major strength of the company is its competency in the field of research and development. Quimica del Atlantico spends significant amount of resources and efforts towards R & D activities. This has encouraged the company to come up with new and innovative products and systems in the market. Apart from that, the company also has the capability of utilizing technology to the fullest extent and therefore technology innovation can be manifested as one of their strategic capabilities. The company has presence in seve ral industries of the world, which provides them an opportunity to increase their total revenue. In addition, the company also enjoyed strong competitive position in the Spanish market. The biggest weakness of the company comes in the form of less export activities. The case enlightens that export has only accounted for 1.5 % of the overall sales of the company. The operational changes that were