External Environment Analysis of Rio International Company in Dubai - Essay Example

The company currently provides its services to the Middle East and other Asian countries at large. It is believed that it is through its lengthy relations that the company has stronger networks and connections. Locally, the company extends its services to airports, resorts, catering suppliers, restaurants, coffee shops, supermarkets, and Multi Star Hotels (Atninfo, 2013). In as much as the company can rejoice and celebrate so many years of existence, there is much that it should do about its environmental factors that directly affect its performance and its future success.

To be able to do this, the company needs to carry out an environmental analysis that would involve analyzing all the factors in its external environment that directly affect its performance. In analyzing Rio International’s external environment, we use the following tools: Most of the equipment that are provided by the companies in the food processing industry in Dubai are manufactured and imported from Switzerland and Germany. This has inhibited adequate growth in the industry as most of the revenues earned taken back to the countries where the products come to purchase more.

When the industry depends so much on other countries for the supply of the equipment, it loses the independence to keep itself in business without overreliance on other countries. The industry can, therefore, face easy extinction in case the countries supplying it with the equipment decides to put unfriendly policies that would make it hard for bilateral or multilateral trade between the countries. The government of Dubai is involved largely in the key sectors of the economy. Manufacturing and processing being one such sector, the government can use its political influences to protect such sectors from external exploitation.

Therefore, the industry is protected politically through formulation of appropriate legal conditions to make it grow and survive without much