External Macro Environment Research Articles

Model For Small Enterprises Innovation Strategies Adaptation On Climate Change: Learn From Traditional Textile Sumba

All business organizations face various risks that might arise from changes in the external macro and micro environment. One of the significant changes in the external macro-environment is climate change. Climate change and its derivative impacts on business activities need to be managed properly by adapting innovations in the production process. Various studies on the impact of climate change on business activities are more focused on conventional measures to gauge business risks which are more responsive and focused on large companies. There are still few studies conducted on small and traditional businesses related to strategic actions in dealing with climate change, especially non-agricultural businesses. Therefore, this research aims to provide an overview of the adaptation strategy of production process innovation in the small-scale weaving industry in Sumba Island, Indonesia. The research conducted in-depth qualitative interviews with traditional textile producers in East Sumba. The main criterion in determining the respondents is the length of the business run by the traditional weaver. The study found that while most traditional weavers of Sumba textile rely on status quo technology, some strategies emerged to adapt to climate uncertainty in weaving production. The authors also identify three benchmarks of climate adaptation measures by the traditional weavers.

Towards a collective opinion generation approach with multiple objectives for evaluating rail transit station accessibility in urban areas

Urban rail transit can alleviate traffic congestion if sufficient ridership is achieved. The accessibility to rail transit stations largely determines public willingness to utilize urban rail transit. The current studies on the accessibility to rail transit stations tend to concentrate solely on individual rail transit lines or stations, neglecting the impact of the external macro-environment. Consequently, the outcomes of these measurements cannot accurately reflect the overall accessibility level of the region, nor do they furnish decision-makers with references for devising plans for rail transit development. This study introduces a novel approach for evaluating the accessibility to urban rail transit stations from a macro-level standpoint, utilizing expert knowledge. The present study conducts an analysis of the impact of political, economic, social, and technological factors on the accessibility to rail transit stations in urban areas. Subsequently, a comprehensive evaluation indicator system is developed based on the aforementioned analysis. Then, experts are summoned to provide their subjective evaluations for every indicator, which are depicted as probability distribution functions. The collective evaluation is derived through the aggregation of individual evaluations utilizing a bi-objective optimization approach that factors in both the collective fairness utility and the confidence level. Finally, the quantile average method is employed to consolidate the collective assessment outcomes of individual indicators, thereby deriving the level of accessibility to rail transit stations in urban areas. We design a small-scale application experiment and attempt to evaluate the accessibility to rail transit stations in Wuchang District, Wuhan with the proposed approach in order to demonstrate the feasibility of the approach.

Проблемы антикризисного управления компанией спортивной индустрии: экономические и правовые аспекты

This research seeks to address the developing anticrisis measures for a company in sport industry. Conclusions are based on the analysis of external macro-environment, market condi-tions, product portfolio and internal environment and the main output of this analysis is the ne-cessity to change the primary market and the product. On the basis of the policy measures, ob-tained from SWOT analysis, we have drawn up three-layer Memorandum of strategies, that provides three scenarios of crisis development.

Model for Small Enterprises Innovation on Climate Change and Tourism Industry: Learning from the Traditional Weaving Industry in Sumba

Purpose: This research aims to provide an overview of the adaptation strategy of production process innovation in the small-scale weaving industry in Sumba Island, Indonesia. The research is used to address climate change, and also relevant to the context of the tourism industry in the region.
 
 Theoretical framework: All business organizations face various risks that might arise from changes in the external macro and micro environment. One of the significant changes in the external macro-environment is climate change. Climate change and its derivative impacts on business activities need to be managed properly by adapting innovations in the production process. Various studies on the impact of climate change on business activities are more focused on conventional measures to gauge business risks which are more responsive and focused on large companies. Few studies are conducted on small and traditional businesses related to strategic actions in dealing with climate change and tourism, especially non-agricultural businesses. This research is carried out with the framework of making adaptation strategies to deal with climate change and tourism.
 
 Methods: This study employed exploratory qualitative research involving 20 informants of ikat weaving craftsmen. The research was conducted in Kambera District in July 2021. The qualitative data in this study were obtained by semi-structured in-depth interviews with the participants. The main criterion in determining the respondents is the length of the business run by the traditional weavers. The main interview questions were about the participants’ understanding of climate change and its impact on their business, as well as what strategic actions have been taken related to innovation in the production process.
 
 Findings: The study found that while most traditional weavers of Sumba textiles rely on status quo technology, some strategies emerged to adapt to climate uncertainty in weaving production to offer valuable products to the tourism industry. The authors also identify three benchmarks of climate adaptation measures by the traditional weavers.
 
 Practicality implications: The results of this study propose a production process innovation model related to climate change adaptation by ikat craftsmen to capture opportunities for tourism development by offering products that maintain cultural value while having high economic value. By all means, this model needs to be approached more deeply, either by conducting qualitative or quantitative exploratory studies.
 
 Originality/Value: The originality lies in its emphasis on the model of strategic actions toward climate change and the tourism industry. Furthermore, it improves the field's originality and value by shedding light into competitive business aspects that allow the industry to become a robust economic tourist attraction for the region, attracting tourists with its high-quality products. The emphasis on cultural values in the process of making Sumba ikat weaving adds a rich dimension to local culture, enriching the experience of tourists interested in the uniqueness of regional culture. Thus, the local economy can be strengthened via the increased tourism in Sumba.

A STUDY OF DIGITAL TRANSFORMATION STRATEGIES OF AT CLOTHING COMPANY

This article takes AT Clothing Company as a research object. Firstly, based on PEST and the Five Forces Competition Model the external macro environment of AT Clothing Company was analyzed. Secondly through SWOT matrix analysis the combination of SO + WO growth strategies and turnaround strategies was selected as the company’s transformation strategies. Finally based on the digital transformations framework and the results of strategic selection analysis, the specific digital transformations strategic plan for AT Clothing Company was proposed from three levels: strategic overall planning, business management and strategic implementation guarantee. Some insights were provided for AT Clothing Company and other peer enterprises in their digital transformation.

Research on the Business Strategy Employed by China's Mask Industry to Minimize the Impact of COVID-19

Based on SWOT–PEST analysis theory, this study compares and analyzes the external macro environment impacting Chinese mask companies and the strengths and weaknesses of these companies when confronted with similar unknown risk impacts. Furthermore, this study examines the opportunities and challenges of these companies in such a market environment and analyzes what marketing strategies they should employ. In conducting a comparative analysis, the significance of the study lies in its investigation of the impact of external environmental factors on making marketing strategies, aiming to improve the correctness of the company's choice of marketing strategies. This paper is also significant because it explores how companies can change their marketing strategies to overcome challenges, seize opportunities, and generate growth when facing rapid changes in the economic environment caused by the disturbance from unknown risks. Therefore, this study hopes to provoke discussion on how Chinese mask companies can survive and progress in the post-epidemic era.

Comparative Analysis of the Aviation Maintenance, Repair, and Overhaul (MRO) Industry in Northeast Asian Countries: A Suggestion for the Development of Korea’s MRO Industry

Aviation maintenance, repair, and overhaul (MRO) has become more important to the air transport industry during the pandemic since it plays a crucial role in improving safety, ensuring profitability, and achieving sustainability in the industry. The growth of the Northeast Asian MRO market is forecasted to be remarkable, making the region the next MRO powerhouse. This study investigates the MRO industry in Northeast Asian countries (China, Japan, and Korea) to gain insights for strategical development of the industry. SWOT analysis was used to understand external macro-environment and internal conditions comprehensively, with comparative analysis then performed to find each country’s competitiveness. SWOT analysis of the external environment of the aviation MRO industry in Northeast Asia finds opportunities from increased competition in the air transport industry and technological development and threats caused by aircraft advancements (less scheduled maintenance checks) and a limited workforce. Internal conditions are analyzed using six factors: cost, workforce, geographic presence, quality with shorter turnaround time, technological advancement, and certification. The results indicate that Korea’s MRO industry has strong human resources but weak technological capabilities. The competitive advantage of the Chinese MRO industry stems from both a large number of aircraft and lower costs. While Japan possesses superior MRO technology, high labor costs reduce their industrial competitiveness. Based on a comparative analysis, this study provides strategic insights into the improvements that can be made in the Korean MRO industry. Since composite MRO of newer aircraft presents a small technological gap which can be overcome with high-quality human resources, Korea should focus its resources and policies on promoting the composite MRO industry due to its high growth potential.

Macroeconomic Factors Influencing the Development of the Sharing Economy in the Lithuanian Tourism Sector

The sharing economy expands and becomes a significant part of tourism, contributing to economic development. The Lithuanian tourism sector is changing from an internal perspective and is influenced by various external macro-environment factors. Currently, as the tourism sector recovers, not only on a national but also international scale, to achieve rapid development of the tourism sector, and assess the importance of one of the biggest catalysts of the tourism sector - the sharing economy, the research aim is to determine the macroeconomic factors that have the influence on the sharing economy in the tourism sector, Lithuania. This research will help policymakers and other stakeholders to create conditions for the sharing economy in the tourism sector for future development and growth in Lithuania. The paper is carried out in the following logical order. First, the literature analysis identifies the macro-environment vectors that significantly impact the development of the sharing economy. The further analysis identifies specific parameters that, according to various literature reviews, influence sharing economy's development in the tourism sector. Further research is aimed at verifying coefficients of influential macroeconomic factors and impact directions by experts. The authors found a positive, most substantial medium-term relationship: between 21-49 years old population growth; increase in monthly income; higher education level of population; the number of households with children; consumer confidence index. The results suggest that the growth of these and other analyzed parameters would have the most influence while encouraging sharing economy's development in the tourism sector. The authors also analyzed other political, economic, sociocultural, technological, environmental, and legal parameters.

Pest Analysis of Greece's External Environment in the View of Digital Transformation of SMEs

Abstract The Digital Transformation has restructured entire sectors in recent years. Τhe Covid-19 pandemic acted as an accelerator in the transition to the new digital era. Yet, SMEs struggle to successfully implement such profound organizational transformation and thus jeopardize their sustainability and their competitiveness. Greece still has a slow pace of digital transformation compared to other countries of the European Union. This paper applies the PEST-framework to investigate the factors of external macro-environment, such as political, economic, social and technological, that are related to the digital transformation of Greek SMEs. The analysis showed that Greek SMEs are facing multiples challenges, yet several environmental factors could be proved extremely beneficial and helpful for them. Keywords: Digital Transformation, SMEs, external environment, Pest analysis, Greece.

RESEARCH ON STRATEGIC CHOICE OF CROSS-BORDER E-COMMERCE ENTERPRISES

This study takes Zhuhai Easy-maker Times E-commerce Co., Ltd. as the research object, summarizes the theories and tools related to enterprise development strategy, and clarifies the current research status and shortcomings of this topic. Investigate and analyze the industry environment and internal and external environment of Zhuhai Easy-maker Times. Select strategies that meet the development needs and characteristics of cross-border E-commerce enterprises and put forward corresponding security measures. Firstly, the article analyzes the background and significance of this study, summarizes relevant domestic and foreign research literature, clarifies the main content and methods of the study, and summarizes and analyzes related concepts and theories of application, laying a theoretical foundation for the development of the study. Secondly, Zhuhai Easy-maker Times is taken as an example to analyze cross-border E-commerce enterprise development environment, mainly through Porter’s Five Forces, to analyze the industry competition environment, through PEST analysis method to study the external macro environment, and SWOT analysis method is used to research the company's internal environment, the enterprise external environment and internal resources, etc., to clarify the realistic situation faced by cross-border e-commerce enterprises. Then, the strategy selection of cross-border e-commerce enterprises is carried out. Thirdly, the strategic objectives and principles are selected based on the actual situation of enterprises, including cost leadership strategy, horizontal integration strategy and relevant functional strategy, and the strategy implementation guarantee measures are proposed.
 The research on the development strategies of cross-border e-commerce enterprises in this paper can not only enrich the current theoretical research content, but also provide theoretical reference for the future research on the strategic development of cross-border e-commerce. 

Evaluation of the Policy Effects of Free Trade Agreements: New Evidence from the Korea-China FTA

Purpose – The policy implications of free trade agreements have traditionally been a matter of debate among economists. The official signing of the Korea-China Free Trade Agreement provides economists with a quasi-natural experiment to analyze the FTA’s policy effects. This article aims to more accurately understand the impact of Korea’s FTA accession on the macro economy. Design/methodology – This study adopts the counterfactual method based on panel data to find common factors in the generation process of macro data to fit the counterfactual path, to accurately evaluate the effect of the macro policy. Findings – Our research results show that the signing of the Korea-China FTA has a relatively significant short-term positive effect on Korea's economic growth. On average, Korea’s real GDP growth rate has increased by 2.1%. This study finds evidence in support of FTA signing not having a significant impact on Korea’s GDP growth in the long run. Additionally, we evaluated the impact of the FTA on Korea’s imports and exports and found that it had a significant positive impact in the short term, but the trade effect of the FTA is significantly affected by the external macro-environment. Originality/value – First, this study uses macro panel data at the national level to examine the impact of the Korea-China FTA on Korea, and more accurately describes the policy effect of the FTA. Second, our empirical results show that the Korea-China FTA policy impact is subject to occasional changes in the external environment, such as the geopolitical conflict (crisis) between Korea and China, and the US-China trade war. Finally, the analysis shows that the short-term effect of FTA is significant but the long-term is uncertain, which provides empirical evidence for the debate on whether joining FTA can promote national economic growth.

Проблемы и перспективы социальной сферы Смоленской области в условиях политической турбулентности

The article deals with the development of the social sphere of the Smolensk Region in the current conditions of political turbulence. Like most regions of the Russian Federation, the Smolensk region is exposed to external macro-environment factors. The change in the nature of Russia's economic ties with its main foreign partners also affected the economic well-being of the region and its social development. At the same time, a number of programs and projects aimed at improving the well-being of the inhabitants of the Smolensk Region are being consistently implemented in the region.

Analysis of Regional Economic Development Trends and Strategy Formulation Based on Sensor Data Collection

In this paper, a multisensor data acquisition system based on FPGA is designed to provide an overview of the current development of the company based on the theoretical knowledge of enterprise development strategy. Through a comprehensive investigation of the company’s internal environment, the advantages and disadvantages of the company at this stage are clarified, and the opportunities and threats to the company’s development are analyzed in the context of the external macroenvironment and industry development. The coupling coordination degree from 2011 to 2025 was measured using the coupling coordination degree model based on the original data and the prediction results, and the results showed that from 2011 to 2025, the coupling coordination degree of Hebei Province showed a continuous growth and experienced the transition from low coordination, basic coordination, to medium coordination in the coupling coordination stage, aiming at the most innovative fields, mastering the most advanced technologies, cooperating with industry giants, innovating, and building digital ecology, creating, and forming core competitiveness based on core independent products and platform-based solutions, and further promoting transformation and upgrading and high-quality development. In this paper, the data acquisition system is tested by building an experimental platform. The main purpose is to test the stability and accuracy of each module of the data acquisition system. After each module test of the system meets the design requirements, the parallel mechanism attitude transformation test experiment is completed, including the moving platform moving test experiment and the moving platform rotation test experiment. The experimental results show that the designed data acquisition system has stable program and reliable function.

Adaptive regulation of activated sludge's core functional flora based on granular internal spatial microenvironment

A great deal of efforts has been put into studying the influence of the external macroenvironment for activated sludge to survive on microbial community succession, while granular internal spatial microenvironment should be given equal attention, because it is more directly involved in the information exchange and material transfer among microorganisms. This study systematically investigated the effects of granular microenvironment on spatial colonization and composition of sludge's core functional flora, and the corresponding difference of biological treatment performance. High content of extracellular-proteins (67.53 mg/gVSS) or extracellular-polysaccharide (65.02 mg/gVSS) stimulated the microbial flocculation and aggregation of 0.5–1.5 mm granules (GS) or 1.5–3.0 mm granules (GM), respectively, which was resulted from excellent cell hydrophobicity (59.26%) or viscosity (3.47 mPa s), therefore, constituted relatively dense porous frame. More hollow space existed in 3.0–5.0 mm granules (GL), which formed loose skeleton with 0.213 mL/g of total pore volume and 17.21 nm of average pore size. Combining scanning electron microscope images and fluorescent in-situ hybridization based microbiological analysis, aerobic nitrifiers were observed to wrap or surround anaerobic bacteria, or facultative/anaerobic bacteria were self-encapsulated, which created granule's unique microenvironment with alternating aerobic and anaerobic zones. GS has the most rich organic matter degrading bacteria and anaerobic heterotrophic denitrifiers, while GM and GL presented the greatest relative abundance of facultative and aerobic denitrifiers, respectively. The activity of dehydrogenase and nitrogen invertase of GM showed be 1.32–3.09 times higher than those of GS and GL, contributing to its higher carbon and nitrogen removal. These findings highlight the importance of granular microenvironment to adaptive regulation of activated sludge's core functional flora and corresponding pollutant removal performance.

CEOs' Financial Background and Non-financial Enterprises' Shadow Banking Business.

In recent years, the “financial-like” behavior of non-financial enterprises has contributed to the “off real to virtual,” which has seriously restricted the virtuous cycle of finance and economy. This study selects non-financial enterprises listed on Chinese A-shares from 2008 to 2019 as the research sample, and empirically analyzes the impact of CEOs’ financial background (FB) on the shadow banking business of non-financial enterprises and its mechanism. The results show that: (1) CEOs’ FB has a positive effect on shadow banking business of non-financial enterprises; among which, the positive effect generated by non-banking FB is stronger. The conclusions still hold after robustness tests by replacing the measurement of variables, controlling for other shocks, changing the parameter estimation method, and considering the endogeneity problem. (2) The mechanism analysis reveals the positive effect mainly by reducing the level of entity investment by enterprises. (3) The heterogeneity analysis finds that, on the one hand, with respect to the internal micro characteristics of enterprises, the positive effect is more significant in state-owned enterprises, non-manufacturing enterprises, and non-growth stage enterprises. On the other hand, with respect to the external macro environment, the positive effect is more significant in periods of easy monetary policy, in industries with a higher competition or in regions with a better institutional environment. This study reveals the intrinsic mechanism of CEOs’ FB and non-financial enterprises’ shadow banking business, enriches the study of the influencing factors of non-financial enterprises’ shadow banking business, and provides micro-level empirical support to alleviate the “off real to virtual” of the economy.

Т. В. Стеценко, А. Ю. Лукіша ВДОСКОНАЛЕННЯ СИСТЕМИ ОЦІНКИ БЮДЖЕТНОЇ БЕЗПЕКИ ОРГАНІВ МІСЦЕВОГО САМОВРЯДУВАННЯ

The purpose of the article is to develop proposals for improving the methodology for assessing the level of budget security of local governments. Methodology of research. The following methods were used in the study: analysis and synthesis, generalization, comparison, methods of statistical research. Findings. We made proposals to improve the methodology for calculating the budget security index of local authorities by adjusting the threshold values of some indicators and the inclusion / removal of indicators. It is proposed to exclude from the budget security index the indicator "Share of non-target transfers (without additional subsidy) in the total amount of intergovernmental transfers" and add indicators "Deficit of local budgets to GDP / GRP", "Dynamics of growth of loans from the United treasury account to cover temporary cash gaps by the United treasury account","Growth rates of violations of budget legislation", "Dynamics of tax debt". We also propose to include in the indicators related to the management of receivables and payables of budgetary institutions, as their increase may indicate the presence of the following threats: low quality of budget planning, low budget discipline, problems with the budget accounting system, etc. However, the lack of statistics in the public domain did not allow to further expand the list of budget security indicators. In comparison with the values of the index calculated by S. Boyko and J. Dyachuk on the basis of their all 12 indicators, the index after the author's adjustment became more sensitive to threats not only to the external macro-environment, but also to internal threats to the budgetary security of a particular local government. Practical value. The use of the proposed improved method of calculating the budget security index at the meso level will improve the quality of risk management of local governments in the budget sphere. This methodology is suitable for assessing the level of budget security as a generalization of all local authorities in Ukraine, and for assessing the appropriate level of a particular local authority.

Research on Adidas International Development Strategy under COVID-19

Affected by COVID-19, Adidas' global net sales in 2020 decreased by 3.756 billion euros compared to 2019. Adidas's net sales worldwide decreased by 3756 million euros in 2020 compared to 2019. This article will analyze the changes in Adidas's operation situation and competitiveness under the impact of COVID-19. At the same time, combined with the 2016-2020 financial statement data publicly disclosed by Adidas, this article will analyze the specific impact of COVID-19 on Adidas' financial status and provide a more in-depth interpretation of the financial statements. The goal of this article is to analyze Adidas' future development strategy and make recommendations by analysing the impact of COVID-19 so that it can better meet the needs of external interests and internal management. Many scholars' relevant research is mostly on the development strategy research at the macro level. However, there is a lack of strategic research on the micro-enterprise level after being affected by COVID-19. This article first reviews the literature and expands new research directions based on existing research. Then, this article will use the PEST method to analyze the changes in Adidas's external macro environment under the influence of COVID-19 and apply the theory and methods of financial statement analysis to specific applications. Then this article will combine Potter's five forces model analysis method to further analyze Adidas' external environment and industry environment under the influence of COVID-19. Finally, this article will conclude and put forward development strategy recommendations.

Consideration of the Development of Hotel Catering Sector under the Influence of Epidemic

This paper explores the transformation of the hotel industry's catering sector in the post-epidemic era by means of investigation, literature research and comparison. In the external macro environment, the instability of epidemic outbreaks makes the hotel industry confront unprecedented challenges. In the internal environment, the market competition is more brutal. The concept and operation mode are diverse and uneven. The decline of traditional mode not only represents that the hotel is confronting the challenge of new concept, but also account for the importance of the industry concept reform. This report provides reference for promoting the development of hotel catering sector by studying excellent catering sectors in this and cross-industry，to study the experience and core concepts of catering sectors in different market environments.

The Northern Sea Route in the national strategic planning system

Subject. This article analyzes the system of State strategic management and planning against the background of significant changes in the external macroenvironment – political, economic, and social, as well as changes in the spatial organization of the Russian economy with a focus on the Arctic region. Objectives. The article aims to determine the relationship between the national strategic planning documents that determine the long-term development of the Northern Sea Route (NSR), and analyze the possibilities of developing Arctic oil and gas reserves, which largely depend on the creation of a system of sea communications. Methods. The study is based on a general-research approach. Systematized legislative and regulatory acts of the Russian Federation regulating the issues of State strategic planning were an information base. Results. Based on the analysis and systematization of the regulatory strategic documents of the Russian Federation for 2014–2020 related to the development of the Arctic zone of the Russian Federation and the Northern Sea Route, the article defines the NSR’s role in changing the spatial organization of the country's economy and shows its strategic importance for the economic security of Russia. Conclusions. In the current system of strategic planning, the Northern Sea Route is actually the core of the Arctic economy of Russia. There are new opportunities for developing entrepreneurship and improving the socio-economic situation of the Arctic areas.

Improvement of Food Industry Management in the Baikal Region

The relevance of the study is based on the importance of improving the management system for the effective development of the food industry in the Baikal region and agricultural production and the inability of the region to realize its potential in this area. The main research hypothesis of this study is that the development and implementation of a food industry cluster on the territory of the Baikal region, the stability and predictability of the external macroenvironment will have a positive effect on the food industry and will create preconditions for its future development. The purpose of the research is to study, identify, analyze and evaluate the characteristics and main aspects of the food industry in the Baikal region, on the basis of which it will be possible to identify advantageous management methods for the possibility of improving activities in this industry, allowing us to develop its potential. A SWOT analysis of the food industry in the Baikal region is presented, it is substantiated that the formation of integration and intersectoral relationships between food industry enterprises within the cluster will solve many problems.