Fortescue Metal Group Ltd

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Fortescue Metal Group Ltd

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Internal environment - External environment - micro and macro factors

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Abstract

The variation in the share price and the sales volume results from diverse factors within the business environment. The internal and external environment of a business effects its business operations. In the external environment, there are micro and macro factors affecting the business operations. These macro factors include the political, legal, social-cultural, economic, and technological forces that affect business operations. Macro environmental factors affect business operations because they are external inevitable factors.

The macro factors are beyond the direct influence and control of the organization. FORTESCUE Metal Group Ltd completed a port expansion project, which cost the company 2.4 billion US dollars. This project has contributed toward the increase in revenues for the business (Harper, 2013).
Technology is a macro environment factor that has affected the sales volume and the share price of FORTESCUE Metal Group Ltd. The company adopts the latest level of technology henceforth assuring its stakeholders of increased sales revenues. Many investment companies and individuals have purchased shares in the company since the company performs well in the S&P/ASX50 share index. This results to the upward trend in the revenues and the sales volume. On August 16, 2013, FORTESCUE Metal Group Ltd joined ventures with Famossa Ltd and spent 1.15 US Dollars in the venture. The joint project is anticipated to expand the company's operations and consequently increase the sales volume in the next period.

Introduction
Macro environment factors
Industrial factors
Firm-level factors
Conclusion

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[...] Technology is a macro environment factor that has affected the sales volume and the share price of FORTESCUE Metal Group Ltd. The company adopts the latest level of technology henceforth assuring its stakeholders of increased sales revenues. Many investment companies and individuals have purchased shares in the company since the company performs well in the S&P/ASX50 share index. This results to the upward trend in the revenues and the sales volume. On August FORTESCUE Metal Group Ltd joined ventures with Famossa Ltd and spent 1.15 US Dollars in the venture. [...]

[...] On constitutional grounds, FORTESCUE Metal Group Ltd convinced the high court that the rent tax be abolished. Following this appeal, the company received incentives from the government aimed at promoting and encouraging mining as par the provisions of section 91 of the Constitution (Davidson, 2013). Economic factors are part of the external environment that affects business operations. The mining industry is among those global economic pillars not affected by factors such as interest rates. Most governments have provisions in the constitutions to support mining. [...]

[...] FORTESCUE Metal Group Ltd is an Australian based iron Core Company. It is the fourth biggest manufacturer of Iron ore in the world. FORTESCUE Metal Group Ltd lists among the best performing companies listed in the stock share index. Through its vigilant operations, the company reports average annual revenue of about 7.12 billion US dollars. Over the past six weeks, the company's share price has varied due to various factors. The sales volumes also vary from time to time. In the past six weeks, the share price reported a wavy curve. [...]

[...] Firm-level factors FORTESCUE Metal Group Ltd continues to show strength in all its operations. The corporation put in position strategies aimed at promoting all the processes in the company. As the major producer of iron ore and a leading supplier of the same to the international markets, the company aims at satisfying the increased demand ore in the international market. The company envisions on being the lowest cost and most profitable iron Ore Company in the world. This will create a sustainable long-term value for the company's shareholders in terms of dividend payout ratio. [...]

[...] FORTESCUE Metal Group Ltd leads in the top mining companies the world. The company does not have primary principal competitors, which makes it attractive in the market. The actions of competing firms lead the management team into devising optional methodologies of operating business to ensure that they remain ahead if their competitors. FORTESCUE Metal Group Ltd has deduced various strategies such as satisfying demand for iron ore in the world's superpowers. This strategy has ensured that the company's sales volume remain high. [...]

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