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Economic Assignment: Artel Communications Company - Essay Example

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Name of student: Artel Communications Company Introduction Artel Company is a telecommunications company that was incorporated in 1971 in Buckingham in the United Kingdom. The company has developed and specialized in delivering communication systems service in the areas of industry, education and transit (Magnussen & Mobley, pg 383, 2000)…
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Economic Assignment: Artel Communications Company
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Economic Assignment: Artel Communications Company

Download file to see previous pages... Specializing on telecommunications, fiber optic networks and security systems, integrated Audio Visual systems, Artel continues to outsource its services from United Kingdom to places like New York City, Europe, Middle East and Africa (Deepak & Stephen, pg, 225, 2002). Accompanied with great quality and service commitment the company takes pleasure in offering the service, design, fabrication, engineering and documentation of highly complicated custom communications systems such as engineered sound, audio visual systems integration, telecommunications, Systems, networking, industrial telecommunications, distant learning, fiber optics and Cable Tele Vision (CATV) and video systems among others. Artel partners with Gilat satellite network, N-soft and Taide Network who is the largest supplier of Very Small Aperture Terminals technology with big share of the world Very Small Aperture Terminals (VSAT) market. Artel receives technical support from Gilat satellite network in the fields of design, installation and maintenance of Very Small Aperture Terminals network (Deepak & Stephen, pg228, 2002). With this support, the company is also able to provide video data transmission, video delivery and internet services globally. Analysis Using PESTEL The external environment of Artel Company is tremendously complex and dynamic thus it should be conducted on a frequent basis. PESTEL analysis is essential tool that helps in understanding a competitive environment which influences the company. PESTEL analysis involves evaluating Political, Economical, Social, Technological, Environmental and Legal factors affecting a particular company (Magnussen & Mobley, pg, 385, 2000). Political factors These factors refer to policies on the scope of involvement by the government in the economy. Political decisions influence a vital area in the business such as education of the workforce, quality of infrastructure such as roads and railway system and health of the nation (Klomp & Leeuwen, pg 352, 2001). Government laws imposed on tariffs and phones produced must abide by the government’s rules and regulations. Goods and services provided to the public must meet the safety and privacy needs by the government. Economic aspects These aspects affect the company in terms of interest rates, economic growth, inflation, exchange rates and taxation changes. These external economic aspects would affect a firm’s behavior for instance: higher interests rate may prevent investments since, it costs more to borrow (Worthington& Britton, pg 10, 2009). A strong currency may hinder efficiency in importation by raising the price in terms of foreign currency. Inflation can also provoke higher wage demands from the employees of a firm. The global economic crisis has caused a great influence on the country’s public finances and telecommunications firms. This is actually symbolized in the movie “Money never sleeps”, where Gheko comes out of prison. It implies that the prevailing economic conditions are a challenge to many companies in the country (Roger, pg619, 2011). The Gross product deficit ratio of 13.0% in the United Kingdom is arousing fear on the investors and policy creators. Report about the country’s national debt shows that in the last three years the national debt ratio was about 38.05% and it is convincing that if it continues at this rate then it might build up to 100% in the next three ...Download file to see next pagesRead More
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