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Q1 Critically review the business environment of ASE&C Ltd discussing key factors that influence the way in which the organisation operates.

Ans. ASE&C today enjoys a good reputation among its competitors as a leader in Nuclear, Metals, Process, Water and Energy. It is ASE&C's target to become 'employer of choice' by giving comparable rates and proposing intriguing tasks, scope for vocation development encompassing teaching and other 'non-salary' advantages to conceive an appealing general package.

Although not directed out, development through acquisition is very reliant on market situation and strategically, the aim has moved to long period connections and high supplemented worth services. Since 2008 (ASE&C) has chased differentiation through strategic connections and expertise in niche markets. The long-term survival of a firm seems to be dependent more on the firm's competitiveness. No matter how much physical, human and intellectual resources, an organization is able to mobilize, its long-term survival will be in jeopardy if it fails to stay competitive. the business environment of ASE&C therefore needs to be able to determine its level of competitive advantage vis-a-vis that of its competitors and also be in a position to improve and sustain it. Normally an organization will set up a marketing intelligence to monitor its competition. This literature review will include an examination of the extent to which financial tools and technique can be used to supplement or complement the traditional marketing intelligence system. It will also examine existing models used to analyze the financial health of a firm and try to determine the extent to which these tools could reveal a company's competitiveness.

The concept of competitive Advantage

According to Porter, M. (1985) the first basic determinant of a firms profitability is industry attractiveness and the rules which affect the level of attractiveness are as follows:

* The entry of new competitors

* The threat of substitutes

* The bargaining power of buyers

* The bargaining power of suppliers

* The rivalry among existing competitors.

According to him the aim of an organizations competitive strategy should be to recognize and cope with these rules as well as influence those rules in the firms favour.

Commenting on these five rules, Kotler, P. (2003) is of the view that these rules pose threats to a firm. One of the threats as viewed by Kotler is worth mentioning. According to the business environment of ASE&C, if there are high entry and exit barriers or if competitors have high stakes in staying in the segment.

Porter, M. (1985) again outlined two basic types of competitive advantage a firm can possess as low cost and product differentiation which can be combined with scope to produce three generic competitive strategies, namely:

* Cost leadership:

* Differentiation

* Scope

Porter distinguished cost leadership as perhaps the clearest of the three generic strategies. Using cost leadership a firm seeks to dominate its market segment by becoming a low cost producer using its costs advantage in economy of scales, proprietary technology or preferential access to raw materials.

It is crucial in case of ASE&C to note here that cost is a prime source ...