Influence of economic environment on enterprises

Enterprises have had gone through many challenging years. To become a successful enterprise depends upon the founder's belief and proper strategic management throughout different stages of the business cycle. In recent years, there are ups and downs in the capital markets, especially the financial tsunami in 2008 and European and American debt crisis in 2011, which has caused significant impact on the world economy.

Governments introduced a series of policies, such as implementing positive fiscal policy and strategies for tightening monetary policies, in response to the financial crisis throughout the past. On the other hand, the tide of macro-economic controls presented an enormous challenge to enterprises that led to the failure of its business strategies. This challenge was particularly difficult for unlisted company to cope with the impact on the rapid economic change.

Whereas is of the view that a listed company benefits to utilise the listed platform for obtaining financing continuously through secondary offerings (placement, bank loan, issue of bonds or other financing activities) to widen its business scope and strengthen core business. Actively involved in the opportunities of merger and acquisition sharpens its competitive edge and withstands challenges in the ever-changing capital market.

In the view to succeed, an enterprise should seize opportunities, accommodate itself to a new fund-raising platform, review the market condition regularly and act prudently, take advantages of prospective changes in the international market as long as commit to remain competitive in its core business.