Company Federal Mogul Business Environments Domestic & Essay

Length: 5 pages Sources: 5 Subject: Business Type: Essay Paper: #67130847 Related Topics: Companies, Environment, Business Theory, International Business
Excerpt from Essay :

¶ … company Federal Mogul business environments (domestic & international) business theories applied environments. Make environments included. Include a summary environment. Then analyze environment collectively incorporating business theories

Federal Mogul Company

The company's activity is influenced by the internal and external environments. The external environment is represented by the economic, social, technological, political, legal, and environmental factors, customers, employees, managers, suppliers, owners, the government, the community, and others. The internal environment is represented by financial, technical, and human resources.

The External Environment

The Economic Environment

Federal Mogul's activity is significantly influenced by the economic situation on the domestic and international markets. The importance of this environment is reflected in the opportunities and constraints it determines (Business Dictionary, 2011). The economic environment is characterized by the structure of economic activity, the level of development, unemployment rate, and others. These factors are directly or indirectly reflected in the market situation. They determine the volume and structure of the products and services offer, the level of incomes, the demand, the level of prices, and the intensity of competition. The analysis of this environment ensures the necessary elements for a correct evaluation of market potential that the company can rely on. The external influences theory explains the relationship between these environments and the company (Kew & Stredwick, 2005).

In this context, the economic environment research in a certain region must be based on emphasizing the factors that determine the size and dynamics of consumption expenses. These factors are represented by the distribution of income, savings, and public debt. The economic environment also includes a series of groups of interest that influence the economic situation of the company. Their actions are reflected in the economic and market conditions that the company must take into consideration.

The technological environment is based on the elements that explain how the company's products are obtained. Federal Mogul; influences the technological environment because of the advantages it benefits from, but also as a supplier. This is because technological developments...


Another fact that must be taken into consideration is that the technological environment is one of the most important components of Federal Mogul, with great implications on its activity and on society. The evolution of the technological environment is expressed through inventions, innovations, the size of research and development funds, and others.

The political environment reflects the society's structure, social classes and their role within the society, political forces and the relationships between them, the state's level of involvement in the economy, and the stability of the political climate. These factors can be stimulating or restrictive on the market activity. Their role is increased in psituations characterized by instability that are caused by the modifications in the political situation.


These are represented by companies or individuals that provide Federal Mogul the necessary resources of materials, machinery, and equipment. The importance of suppliers is represented by the fact that Federal Mogul's success on the market relies on the quality of its products. Therefore, it is important to develop strong relationships with suppliers, based on the satisfaction of both the customer and the supplier. It is also important to develop a large supplier base. Companies that only have few larger suppliers are more likely to experience problems caused by defective supply chain management. It is recommended to rely on a larger number of smaller suppliers that can provide the company its necessary resources.


The company's customers represent the central point of Federal Mogul's strategy. In other words, the company develops and implements its strategy in order to satisfy its customers' needs. However, this can be achieved by thoroughly analyzing customers and their requirements. This requires investments in market study. The nature of Federal Mogul's products and services determines the company to orient towards companies as customers. This situation presents a series of advantages and disadvantages. The advantage is represented by the fact that such customers represent important relationships that the company can benefit from. The disadvantage is that it is more difficult to attract such customers.


This is one of the most important factors that influence the company's activity. In order to create competitive advantage, Federal Mogul focuses on providing high quality products and services. However, it is difficult to compete with companies that outsource their production process and other activities to cheaper destinations, like…

Sources Used in Documents:

Reference list:

1. Kew, J. & Stredwick, J. (2005). Business Environment: Managing in a Strategic Context. Chartered Institute of Personnel and Development. Retrieved August 28, 2011 from

2. External Environment (2011). Business Dictionary. Retrieved August 28, 2011 from

3. Goldman, G. (2006). Strategy: Sustaining Competitive Advantage in a Globalized Context. Retrieved August 28, 2011 from

Cite this Document:

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