CASE FIBOS has persistently been ranked at the top position because of its  uniqueness in electronics manufacturing. FIBOS is regarded as a leader for  innovating products in the market and has now become one of the biggest  online retailers for electronics solutions. The electrical business is influenced by  macro-environment forces and the economy as a whole. It is pertinent to know  that FIBOS receives a major portion of its sales from outside the European  market. Sales contribution of FIBOS sales from outside the Europe is of more  than $113.8, whereas, the sales income from the Europe is $68.8 billion. In FIBOS  case study, it is important to understand the amount of negative impact of any  political disturbance or revolution on the company in its operating countries. 2 China being a low labor cost country, manufacturing of FIBOS’ electronics is  enormously dependent on China. However, the troubled political scenario of  China affects and disrupts its manufacturing every now and then. In addition,  the Chinese imports have imposed restrictions. One of the major concerns of  FIBOS is that if it tries to get an alternative to production in China, it will increase  the cost of production, resulting in an increase in prices of FIBOS products. In  addition to it, FIBOS may face a major loss of market share in China, due to  growing nationalism amongst the Chinese.  Due to the Covid pandemic which is likely to lead to a situation like recession  and other economic issues, the income of the company can adversely get  affected. While in comparison with other businesses, FIBOS is likely to get  affected badly, because of its premium class products and huge pricing.  However, FIBOS is amongst those companies, who were the most affected  during the Covid pandemic and this has led to a downfall in its revenues to  16%, during the second quarter of 2020, as compared to its revenue in the  same period of the last year. In addition, there is a rise in exchange rates,  because of increasing value of the US dollar. Thus, the price of the products of  FIBOS gets affected due to this increase in the exchange rates.  The most significant factors in the electronics industry is the increasing  international trade agreements and new governmental guidelines. FIBOS has  a variety of intellectual property that are produced by its brands and lately, it  entered the highly regulated financial sector, which can take the company to  increased regulation level. For rendering such financial services, it could lead  the company to various litigations. The company’s revenue has also been affected badly because of factors such  as disposal of used or non-working electronic equipment. FIBOS is facing huge  issues while disposing of all the electronic junk that is not required anymore or  not in the condition of usage. Because of these factors, FIBOS has to incur all  the cost. In addition, revenues are affected because the company needs to  carry out more expenses in the manufacturing processes because of its  dependability on the usage of electricity.  When it is about earning revenues, innovation costs are higher than any other  industries. FIBOS is one of those rising industries who has grown with innovation.  It is proven that any company who wishes to earn well must innovate from time  to time. As per the report of 2015, FIBOS spent $8.7 billion in its Research &  Development that cost it for around 3% of the total company’s net sales. The  purpose of these researchers is to understand the approach of customers by  having the short product life cycle of the industry. 3 Due to globalization, various factors have contributed and marked a massive  impact on FIBOS like the rapid increase in wages, labour costs and customer  tastes. It is desirable and wishes by the customers because of its unique selling  proportion, innovative design, simple and straight marketing strategies of its  products and high pricing of its products. Eventually, FIBOS electronic brands  have attained a status symbol in the society across the world, due to its  exceptionally high prices, making it affordable to the high class of the society.  Some customers have argued that FIBOS lacks social- consciousness and  responsibility, as it carries out its manufacturing process in China, while it can  be a job-creator for the home country. Still, it is attracted to China to get lowcost labor for its manufacturing. This factor may limit its appeal to some people. Required; Using an appropriate strategic analysis tool, You are required to analyse the  macro-environmental factors that may significantly influence the strategic  position of FIBOS in their electronic industry

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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CASE

FIBOS has persistently been ranked at the top position because of its 
uniqueness in electronics manufacturing. FIBOS is regarded as a leader for 
innovating products in the market and has now become one of the biggest 
online retailers for electronics solutions. The electrical business is influenced by 
macro-environment forces and the economy as a whole. It is pertinent to know 
that FIBOS receives a major portion of its sales from outside the European 
market. Sales contribution of FIBOS sales from outside the Europe is of more 
than $113.8, whereas, the sales income from the Europe is $68.8 billion. In FIBOS 
case study, it is important to understand the amount of negative impact of any 
political disturbance or revolution on the company in its operating countries.
2
China being a low labor cost country, manufacturing of FIBOS’ electronics is 
enormously dependent on China. However, the troubled political scenario of 
China affects and disrupts its manufacturing every now and then. In addition, 
the Chinese imports have imposed restrictions. One of the major concerns of 
FIBOS is that if it tries to get an alternative to production in China, it will increase 
the cost of production, resulting in an increase in prices of FIBOS products. In 
addition to it, FIBOS may face a major loss of market share in China, due to 
growing nationalism amongst the Chinese. 
Due to the Covid pandemic which is likely to lead to a situation like recession 
and other economic issues, the income of the company can adversely get 
affected. While in comparison with other businesses, FIBOS is likely to get 
affected badly, because of its premium class products and huge pricing. 
However, FIBOS is amongst those companies, who were the most affected 
during the Covid pandemic and this has led to a downfall in its revenues to 
16%, during the second quarter of 2020, as compared to its revenue in the 
same period of the last year. In addition, there is a rise in exchange rates, 
because of increasing value of the US dollar. Thus, the price of the products of 
FIBOS gets affected due to this increase in the exchange rates. 
The most significant factors in the electronics industry is the increasing 
international trade agreements and new governmental guidelines. FIBOS has 
a variety of intellectual property that are produced by its brands and lately, it 
entered the highly regulated financial sector, which can take the company to 
increased regulation level. For rendering such financial services, it could lead 
the company to various litigations.
The company’s revenue has also been affected badly because of factors such 
as disposal of used or non-working electronic equipment. FIBOS is facing huge 
issues while disposing of all the electronic junk that is not required anymore or 
not in the condition of usage. Because of these factors, FIBOS has to incur all 
the cost. In addition, revenues are affected because the company needs to 
carry out more expenses in the manufacturing processes because of its 
dependability on the usage of electricity. 
When it is about earning revenues, innovation costs are higher than any other 
industries. FIBOS is one of those rising industries who has grown with innovation. 
It is proven that any company who wishes to earn well must innovate from time 
to time. As per the report of 2015, FIBOS spent $8.7 billion in its Research & 
Development that cost it for around 3% of the total company’s net sales. The 
purpose of these researchers is to understand the approach of customers by 
having the short product life cycle of the industry.
3
Due to globalization, various factors have contributed and marked a massive 
impact on FIBOS like the rapid increase in wages, labour costs and customer 
tastes. It is desirable and wishes by the customers because of its unique selling 
proportion, innovative design, simple and straight marketing strategies of its 
products and high pricing of its products. Eventually, FIBOS electronic brands 
have attained a status symbol in the society across the world, due to its 
exceptionally high prices, making it affordable to the high class of the society. 
Some customers have argued that FIBOS lacks social- consciousness and 
responsibility, as it carries out its manufacturing process in China, while it can 
be a job-creator for the home country. Still, it is attracted to China to get lowcost labor for its manufacturing. This factor may limit its appeal to some people.
Required;
Using an appropriate strategic analysis tool, You are required to analyse the 
macro-environmental factors that may significantly influence the strategic 
position of FIBOS in their electronic industry 

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