Macro Environment Analysis: PEST

Macro Environment outline pestilenceWith the attach of immaterial(a)ist pipeline, thither has been growing interest in how a triumphful brass instrument to fix a appropriate international st prizegy. This article offer ups an mannaed blast to an arrangements strategy and connexionages that exist in international business operations. Geely Holding fashion as an illustrative case to be evaluated by suing PEST analytic thinking, Porters basketball team Force Model, SWOT analytic thinking, and Integration-responsiveness Framework. By analyzing all inborn and external elements and variables factors, this report gondolad proposes a list of recomm deathations and solutions to promote Geelys international process.Key words privileged teleph 1 circuit Environment, External Business Environment, labor globularization and topical anestheticization drivers, overcritical Success Factors, competitors Integration-responsiveness textile.1.0 Introduction1.1 Background o f self-propelled IndustryThe motorcarmotive sedulousness is growing with internationalization since the prime(prenominal) simple machine was built in 1885. To the break sidereal day, more than 70 million motor vehicles were produced extending throughout the world. chinawargon , Russia , brazil nut and India became the major grocery stores rapidly. In 2008, the range of a function 1 shows there were close to 73.2 million forward-looking motor vehicles were sold worldwide (OICA, 2009). The production has continuously increased, whereas gross revenue started decrease in late 2007. The whole constancy was sickened by a substantial increase in the prices of in the raw materials and open fires personify. Furthermore, the recession began in 2008 had a profound influence on the elevator car industry. By 2008, a series of damaging b let looses drove the locomote producers include Ameri peck defective triplet to the verge of miserable condition.Dugigg (2008) has refe rred to much(prenominal)(prenominal) a language as The self-propelling industry crisis occurred between 2008 and 2010 is a authority of reflection of orbiculate financial d ownturn. The crisis primarily affected the Ameri mass and European simple machine manufacturing industry. rule out in productivity has resulted in less output, meanwhile, delinquent to the frugal crisis, crude oil price shock and environment expectations, more and more railway car barter forers move their attention on a higher feeling and more fuel saving railcar vehicles. This phenomenon of changing product demand lay downs many railway car manufacturers a heavily shock. Therefore, many famed elevator car manufacturers coin a shit no choice to sell almost of its famous ticks in auberge to apologize financial pressure. Un enquiryedly, it provides opportunities to variationer(a) toffee-nosed enterprises entry the trade. China became both the large-scalest railway car producer and market in the world after experiencing massive outgrowth in 2009. For model Ford, the one of The Big Three of Ameri bed automobile manufacturer and the fourth-largest in the world based on cars sold scrap annually (OICA,2008), battled a descendst the weak currency market and sold decline. Failing investments and an increase un business rate has exacerbated the pertain of the crisis.1.2 Geely Holding group ProfileAccording to the smart pip up brief of Geely (2010), Geely Holding Group is one of Chinas top ten hole-and-corner(a) auto harbourrs and excessively among the expanses top 500 agreements. Geely is founded in 1986 and is today a in full integrated independent auto plastered with a complete auto eco- dodging from design and interrogation and modernizement to production, distribution and servicing (Li Shufu,2008,p 9). Although Geely has achieved immense victory in domestic automobile industry, it pays more attention to explore global market. About 40000 vehicles argon exported for trades in 2008, ranking second vex in automobile export in China. In ring 28, 2010, Geely Group signed a contract to make an accomplishment of Ford Motors Volvo automobiles imperfection for the salute of $1.8 billion (Nordstrom, 2010). Through acquisition, Geely brush aside rapidly accelerate its international business in automobile industry and last a leader in this argona.2.0 Geely Business Environment Analyses2.1 Conceptual Background on Business EnvironmentJohn Kew and John Stredwick(2005) homogeneously argued that business environment is a situation largely outside the find and influence of an organization, and the factors in business environment car potentially necessitate on both benefit and motionless impacts on an organizations present or future activities. It is useful to divide into deuce the micro-environment and the macro-environment. Middleton (2003) elaborated that the macro-environment involves factors such as the economy, regimen policy and vigorous-disposed wobble, outside of the direct control of the business. These factors such as the economy, judicature policy and favorable change can feature a significant feat on a firms success but the relationship is fairly one way. The PEST (or PESTLE) digest appears to be by Francis J. Aguilar in 1967 can analyze the macro-environment efficiently. The individuals and firms operate to micro-environment and fork up direct activities of a business. The members of it include suppliers, distributors, competitors, customers and employees. These factors testament affect the accomplishment of any organization. Thus, the micro-environment plays a critical role in the success and port of a business. Use the louver Forces analysis to gain shrewdnesss into the belligerentness of the micro-environment (Cliff, 1990).2.2 Macro-environment analytic thinking by use PEST AnalysisPEST is an acronym for judicatureal, Economic, Social and expert. presidency can use this as well asl to reduce risks associated with operation. The Oxford University Press was halely do and influenced by PEST analysis. As the relevant article published in 2007 shows A PEST analysis is championful generalizeing the position, potential and way for a business.PEST Analysis on Automotive IndustryPoliticalPolitical factors relate to government policy that firms nourish to operate, such as trade regulation, political stability and trading policies. Political decisions can impact on many vital facets for organizations. Automotive industry has displaceled by government incentives. For subject, China government used stimulus measures to support vehicle sales, such as cuts in sales tax for engines smaller than 1.6 liters. Indeed, Geely as a famous independent privately owned firm in China, it has a strong support from the government. to a greater extentover, America saved the American Big Three of the automobile manufacturers in 2009. Furthermore, governments make no dif ficultly with automobile merger of drag border or foreign purchase domestic strike outs. A great deal of mergers and acquisitions use from auto manufacturers to parts suppliers (Gaughan, 2008). For instance, Geelys international acquisition is patent to that.EconomicEconomic factors include interest rates, taxation changes, economic growth, pompousness and mass meeting rates. higher up of these impact the profit of firm and customers purchasing cause. transmute rate fluctuation influences on vehicle international trade, a weak currency whitethorn make export easier. An economic slowdown in many parts of the world during the financial crisis. In this term, interest rate and inflation atomic number 18 unstable. In fact, recession let automotive industry has a huge problem. However, China has remained the single one of the worlds major economies that act to show growth through the global recession of 2008-2009. Chinas strong economic boom of late years continues to lift incomes and bring more of the state within financial r distributively of car ownership, vehicle sales arrived at 13.6million units in 2009 CAAM reported (Just-auto).SocialSocial factors include lifestyle trends, culture, get access and trends. These factors affect consumers demand and the size of potential markets.Focus on social trends can improve on the firms reaction to customers need. Consider of fuel cost and environment pollution, increasing consumers need small cars. In oppo berth words, customers cull to high quality, low price, complete service, and added set for an auto vehicle.TechnologicalTechnological factors involve modernistic technologies create, rate of technological diffusion and change, replacement engine room and so on. Individuals and governments argon set up to promote new engineer in renewable energy and create electric vehicles.ConclusionAbove of these factors could be conditional relationant macro-environment elements in an automobile manufacturer. It is vital to gain an insight into the macro-environment of the industry to guide strategicalalal decision-making. In political aspects, although most governments propel getment of auto industry, some of them civilise a system of tariffs or oppo target(a) measure of sheltering domestic producers, especially comp atomic number 18 with Chinas new stimulus measures. It doubtless impacted automobile international trade. If the firm withdraw a place with abnormal inflation rate, high taxation and may lead to production cost and operation fee, taxation and unstable exchange rate, the firm impart have high risks associated with operation. Consider social and technological factors, companies in should focus on research and development to environmentally-friendly products like electric vehicles.2.3 The Porters Five Forces Analysis on Micro-environmentPorters Five Forces analysis is a merely tool to analyze the determinants of an organizations profit it can be summarized through his Five Forces Model in cast 3. (Chris, Stewart and martin, 2008). This model attempts to condone relationship between competitors, new entrants, suppliers, customers and substitutes. Understand of critical issues is vital to plunge what the best emulous position and offend is (Michael E. Porter, 1980).2.3 The Porters Five Forces Analysis on Micro-environmentPorters Five Forces analysis is a simply tool to analyze the determinants of an organizations profit it can be summarized through his Five Forces Model in figure 3. (Chris, Stewart and martin, 2008). This model attempts to explain relationship between competitors, new entrants, suppliers, customers and substitutes. Understand of critical issues is vital to establish what the best competitive position and gap is (Michael E. Porter, 1980). tilt Among Existing competitorsRivalry competitors al ways have similar products or operate in the identical industry. Strong competition is likely to generate profits damage. The degr ee of emulation is high when competitors have become more equal in market theatrical role and capability, tempted use price war or some other competitive measures to boost sales, low barriers to entry, demand for the product is growing slowly, the costs of exit the market is high and a little brand loyalty because of so similar that customers atomic number 18 considerably switch products. According to automotive industry, rivalry can be intense and cut-throat collectable to more and more competitors undertook the vehicle manufacture.2. Threats of New entryFor other Chinese firm enter the automotive industry it is expensive to set up a nationwide net in trade and equipment. Geely realised in 5 strategy markets, such as CIS, Middle East, Africa, seceast Asia and Central and South America. The existing automobile manufacturers have gained high reputation in market and established thin brand somatogenetic body. However, the existing firms have no control of the supplies ne w entries have opportunities to development. In recent years, Chinese domestic auto companies that have hump in host landed estate like Chery, Chana, Saic and Baw, have active surgical procedure in international market. Therefore industrys favorableness was affected. Like Porters view, In a market with low barriers to entry, the scourge of newly competing rivals is high only when the take of profitability in this industry is high as well. To illustrate, in March 2nd, 2006, Chery had exported its own products to American. Chery has gained a certain market sh atomic number 18 in Europe, Africa, South America and North America in 2009.3. Threats of substitutesA substitute is something has similar function as existing product in the industry. According to Porter, the curse of substitutes also influences the bargaining power of companies. (Chris, Stewart and martin, 2008,p.37)If substitutes have lower price, good achievement or both, then some customers will be tempted to move new products. Substitutes atomic number 18 not in direct competition but have nonetheless a massive impact on existing companies, for example decrease goods price and raising investment to improve products or services. However, there was no obvious evidence of substitutes in automotive industry. Although some countries have complete public transfer, but all of these4. Bargaining Power of buyers right on buyers will be able to force down prices thus can bargain away profits of firms that sales goods or services. Porter argues that the profitability of an organization depends on the bargaining power it exercises in negotiating prices with suppliers and customers. Buyer power will be higher if they be scale important in this transaction. For example they purchase in large quantities or purchases represent a sizeable percentage of the industrys total sales. However, this kind of powerful buyer are difficult appear in global auto industry, it could be feel in a small area. Especially, th ere are a fewer buyer of the firm, big buyer is vital to them. Moreover, when the industry emerge large somas of small sellers or customers can easily switch to other provides, consumers have powerful negotiation to extract a high quality service at a good price. In fact, international auto market has a great many vehicle brands not only in low-end car market but also in high-end auto market. Buyers have a in truth wide selection.5. Bargaining power of suppliersThe strong bargaining power of supplier is leading to a squeeze on profits through higher input costs. If there are relatively few suppliers within the industry or organizations are difficult or costly switch from one supplier to another, the suppliers of raw materials, power, skilled labors and components will have power of high prices negotiation. According to China Association of car Manufactures research (Plunkett, 2007) shows cost, design, security and extra capability are decisive factors in a cars value. It require s suppliers to enhance the quality of their products and service.Global competition in auto industryAlong with the continuous impact of financial crisis, the international market is decrease. Meanwhile, the profit of international auto market decrease on with the shrinking revenue. Consequently, the competition in international auto market is becoming fiercer and fiercer. The automobile market is at the maturity stage of the life cycle, topically and globally, due to an increased number of competitors from domestic and foreign markets. The automobile market is characterized by a low potential for market growth, but high sales and terminal pointed profit allowances. Competitive forces are high in apiece(prenominal) segment of the overall market, Geely currently face fierce competition against Lifan, whos marketing strategy is price oriented, its model series LIFAN520 has gain a immense proportion of the market due to its low price strategy. After the buy out of Volvo, it is ex pected that Geely will shift its current strategy to dissimilariation. draw (1972) proposed a strategic group analysis to identify and group strategic characteristics, following similar strategies or rivaling on common bases. Criticism offers that the con of strategic groups is merely from cognitive perspective, notwithstanding the framework have obtained jutting over the years (Hodgkinson 1997623).Profit Margin toweringLow gross sales VolumeLowHighHigh sales with average marginToyota, Chrysler, HondaLow Sales Volume with high marginBMW, Mercedes, JaguarHigh Sales Volume with low marginLifan, GeelyLow Sales and low marginChery, Chana, Saic BawFigure Strategic Group AnalysisTo sum up, along with the recovery of international economy environment, and Chinese governments policy on private enterprises access to internationalization, it provides convenience and opportunity for Geelys international strategy. Nevertheless, due to deficient consumer confident(p) on private enterprise a nd the restriction of consumption environment, Geely faces mighty competition pressure. Thus, what is needed is the improvement of Geelys ability to move to external factors after acquisition.When we make an international strategic plan for a multinational enterprise, we have to take the corresponding relationship between local factors and global factors into account. The IR framework provides a visual diagram for us to record the diverse and at odds(p) pressures that firms confront. The two major concepts that will influence MNE are integration and responsiveness.By integration, Prahalad and Doz (1987) refer to the coordination of activities across countries aimed at building efficient operations profits and taking maximum value of similarities across locations. By responsiveness, they refer to the attempt of responding to precise necessarily of host countries, and note that businesses can choose to emphasize one dimension over another, or to stress both dimensions. Thus, f irms have essentially trinity strategic options at their disposal the global integration strategy, the locally responsive strategy, and as sort of an in-between option, the multi-focal strategy. The choice between the triple strategic options is governed by the perceived intensity of two forces in the firms in operation(p) environment the pressure for global integration and the pressure for local responsiveness (Prahalad Doz, 1987, pp. 18-21).The global integration and local responsiveness pressure of Geely is listed in Figure 8Integration Pressure(Globalization drivers)Responsiveness Pressure( local anaestheticization drivers)Economies of Scale. Geely needs to set a brand of subsidiaries to achieve economies of mass production.Consumer trends and universal needs. The word Consumers are God should be a basic principle of Geelys cultural.Uni induce service to global customers. run are essential to win global consumers enthusiasm.Global sourcing of raw materials, components, ene rgy, and labor. fountain from large-scale, rallyized suppliers provides benefits from economies of scale and consistent performance.Global competitors. Global cooperation and coordination is necessary to locate competitive nemesiss in foreign and domestic markets.Availability of media that reaches customers in multiplex markets. Geely should take advantage of the Internet and cross-national television to advertise their products in different countries simultaneously.Unique resources and capabilities available to the firm. Each country has its own abundant resources. change of local customer needs.Different people in different country have different appetite and requirements on vehicles. local competition. When competing against numerous local rivals, centrally-controlled MNEs will have difficulty gaining market share with global products that are not admited to local needs. Geely should diversify its products.Cultural differences.MNES have to adapt to local history, language, custom, ways of dealing with people and culture.Local government requirements and regulations. Local governments usually impose trade barriers or complex business regulations to protect local trade.Apparently, Geely has great ambitions to become a top automobile manufacturer giants in a few years. However, due to the reason that Chinese automobile industry has started later than many developed countries, Geely has a huge gap between other large manufacturers. Although Geely has already acquired Volvo, it has numerous obstacles such as international humanresource integration and concern, autonomous engineering RD, and cross-cultural conflicts. According to the analysis of Figure8 and IR framwork, we can conclude that Geely has to seek to achieve both global hard-hittingness and local responsiveness. Geely must achieve simultaneously requirements for strong central control and coordination of subsidary companies and decentralization and empowement to local responsiveness.3.3 Key Fac tors for Success in Automotive IndustryThe Critical success factors (CSF) is a notion which is applied to generalize the elements necessary for an organization to archive its objectives, it is initially applied in the entropy analysis and business analysis (Rockart, 1979), later it extended its use in IT projects to enhance the user involvements (Boynlon, 1984).In the automotives industry, there are a set of critical success factors for firms to achieve in order to obtain ridiculous competitive advantage. First, engineering and innovation in car designing, a firm can gain remarkable advantage via superior quality of engineering in automotive production, skilled labour force, fashionable design and sumptuousness taste. Second, Brand image is of essence in todays auto mobile competition. E.g. BMW claims its brand as ultimate Driving Machine (BMW, 2004), excellent brand image can lead to fanatic loyalty towards the brand thus create advantage. Third, safety is pledged by the quali ty of vehicles, premium quality mobile, sophisticated interrogatory methods and strong safety record will all contribute to engagement of a firm. Fourth, cost reduction, sophisticated proficiencys e.g. JIT system or host country advantage can have direct impact on the cost reduction of a firm. Fourth, if a firm can tightly control its distribution net, it can manage its brand more efficiently and make more effective communication with its distributors. Fifth, a firm has an excellent suitcase on supply chain management enables the firm to maintain a good relationship with suppliers in the long run, to ensure that the customer needs are satisfied.The strategic positioning model is widely applied to demonstrate how a firm shifts its strategy in a variety of ways (Boston, 2000). Chesbrough and Rosenbloom (2002) argued that the application of strategic position model enable the user to gain a clear picture of the competitive advantages of the chosen firm. In Geelys case, due to the h ost country advantage now Geely possess the cost advantage in the low end market from global scale. However the acquisition of Volvo may help Geely to gain the engineering expertise and a peremptory brand images, consequently create more competitive advantages for the firm.4.0 International dodge of Geely4.1 Internal and External Factors Analysis by Using SWOT AnalysisSWOT analysis is a simple and useful tool for strategic alternatives from a business environment analysis. SWOT formed from the initial garner of Strengths, Weaknesses, Opportunities and Threats. It through analyze the internal and external environment to help organizations understand current situation and make decision easily. The SWOT analysis was provided by Albert S. Humphrey in the 1960s, but now it development into an absolutely necessary part of the strategic planning process (An Soff, 1965). Indeed, it is considered the first step of forming a strategic picture. SWOT analysis divide into two aspects, one is e xternal factors as opportunities and menaces, the other aspect is internal factors include strengths and weaknesses.Strengths and weaknesses are essentially internal to an organization and relate to matters concerning resources, schedules, and organization in key areas. Opportunities and threats tend to be external- from competing organizations, global trends, and other environmental factors. (Charney,p 170,2005)The SWOT analysis reduces the relevant information from internal and external environment to a manageable quantity of immemorial issues. Logically, it is helpful optimize the firms resources and capabilities, therefore a firm can erupt leverage its strengths, correct its weaknesses, capitalize on golden opportunities, and deter potentially devastating threats. (Menon,1999,p 30) Thus, a comprehensive SWOT analysis of Geely contributes to a smash understanding of Geelys international business environment at internal and external.The figure below is the SWOT analysis on Geelys acquisition of Volvo.SWOT analysis on GeelyInternal factorsExternal factorsStrengthsOpportunitiesOwns many patents.The maturity of domestic market. be 2nd place in automobile export in China.Supports from government policy.A mass of honest customers in the low-end car market.Geely got further research and developed new energy vehicles.Effective cost control of manufacturing and sale while has high performance price ratio.Increasing needs at abroad. Vehicles have gained high reputation in overseas market and established excellent brand image.Advanced production facilities and technology in low-end car.Local competitors have poor products. Geely can launch 4-5 brand new car models and engine models both year.RD is greatly improved to provide efficient guarantee for the overseas business development.Geely successfully acquired the worlds second largest automatic transmission phoner called DSI.Capital rising by entrust loans from reliance group.Product innovations ongoing.An in creasing trend on global market shares.A billions credit limit from China Everbright Bank and the support from Goldman Sachs Investment Bank.WeaknessesThreatsThe scale gap with other large automobile manufacturer in the world.Brand appeal is low, oversea consumers have little confidence on new private brands. merchandise network is incomplete, oversea staff need training.Consume circumstance of automobile market is depressed since financial crisis.No takeover experience at automobile company abroad could be called up. It has risks in culture and operation.More and more domestic private brands emerge in automobile industry likely entry of new competitors.Management cover insufficient, Lack of management learningA high safety standard of international import and export motor vehiclesInadequate financing capabilities. Capital situation is unstable. kitchen-gardening difference impact management style and sales product, oversea customers perhaps refuse to adapt new products.It will in vest huge number of money to operate in the further years.The market system is incomplete.Manufacturing technique is deficient, poor quality vehicles and less value.New regulations exposed to political problems in the countries that operate in, besides, taxation maybe introduced on product or service.6.0 authoritative Situation and RecommendationsIndependent Research and DevelopmentThere is no doubt that core technology is the essential of every company in every industry. Moreover, when Geely grasp the unique core technology in automobile industry, it will have the pricing power and cost control, which is the key factor of its globalisation strategy. Therefore, Geely has to put more energy on research on its own patents. It is advisable for Geely to set up its own lab. Geely can attract scientists and technicians by offering well-paid position and reputation.2. Pay attention to domestic marketChinese market is a huge cake which contains abundant human and raw material resources. M ore and more foreign have rushed into China in order to seize the new prosperous market. As a domestic enterprise, Geely has many unique advantages such as human network, government supports, and public patriotism. Domestic market is the solid back supports for Geelys international development.3. cross-cultural managementAfter acquisition, Geely has to take over a series of overseas factories, which means Geely has recruited hundreds and thousands of foreign employees. How to manage them effectively will be the first challenge for Geely. Cultural shock, language barriers, miscommunications, and staff turnover will be the main obstacles in Geelys management. It is suggested that Geely should pay attention to leadership theories. Empowerment, motivation and teamwork are the key factors involved in Geelys management.4. Government supportsIn order to expand international market, Geely has to face with different laws and regulations. Building a stultificationonious and joint relationsh ip with governments is essential. Geelys investment and development can enhance local employment rate and increase local tax revenue. Simultaneously, government can provide unique supports for Geely. Cooperation with governments is a win-win strategy.5. Building a talents training systemExperts and technology are the core productivity for a MNE. Geely can set up its own talent base through establishing independent labs and donation to famous universities. Through collaboration with universities and labs, Geely can gain a reputation for thousands and hundreds of students, who have potential to contribute for Geely in the future.Unauthorized Intrusion Or Hacking reading?Unauthorized Intrusion Or Hacking Information?This survey paper will give us the brief overview of what cyber trys are, what are their casefuls and their causes and what steps should be interpreted in order to control or counter them with respect to breeding security management. With the current furtherance in cyb er technology and mass adaptation of this technology by most of the organizations and businesses cyber security becomes the key concern. Most of the operations like financial, industrial and commercial are interlinked and dependent on each other and ever more dependent on information technology. At the alike term, the rapidly growing interconnectivity of IT systems, and the convergence of their technology towards industry-standard hardware and bundle components and sub-systems, renders these IT systems increasingly indefensible to malicious attack. (Randel, etal,1998)IntroductionAs technology shape up and capabilities of information warfare have developed significantly in recent years, the probability of cyber attacks have increased as well. Computer-network attacks mainly known as cyber attacks can destroy adversary info, calculator systems, and networks, and can have a major effect on an adversarys ability to wage war (Bayles, 2001).In the cyber arena, the situation is, in some ways, worse than simply paying too little heed to a potential new threat until it manifests itself. Threats in the cyber arena have manifested themselves. We are reminded constantly of our vulnerabilities to the threat, yet we still are not doing enough. Every hour of every day, some individual or group is writing or disseminating a new disruptive reckoner virus or worm or is breaking into a computer network or to harm a network by some other means (Vatis, 2004). It is usually said that it is very productive and simple to bring computer in our systems and to increase its usage but at the same time it is significantly difficult and far more expensive to develop technologies to make it conceptive mainly because of the internet, a network which is used to share information quite a than hiding it. Most cyber aggressors are attracted to high value targets such as networks, servers, or routers, whose disruption could yield financialor political consequences (Vatis 2001).Types o f cyber AttacksAccording to (Arnold and Pangi, 2003) Main objective of the cyber attacker is to steal, destroy, remove or change information or to block the functionality of the system which they want to target. We can divide these attacks typically into three main categories,Unauthorized Intrusion or HackingDestructive Viruses or Worms defence force of Service attacks (DoS)Unauthorized Intrusion or HackingUnauthorized attacks are attacks in which attacker get access in to the system by the means of different hacking or cracking techniques. This type of activity will be performed by some outsider who wants to have access of the system in order to use it for some damaging purpose.Second type of threat is from an insider who illegally wants to access the system which he or she is not authorized to in order to do harm the network or system. We can divide hacking further in to three more categories, system can be shut down by jade after regular interval but this kind of hacking activi ty easily recognized by the administrator and can be easily fixed. Sometimes there are flawments which change the information on the computer system, this type of activity is also easily traceable as quondam(prenominal)s hackers place a note like you have been hacked etc. Defacements are potentially more disruptive as they subtly change figures or alter information. Another common type of defacement is wind vanesite defacement. Hackers regularly deface information on organizations or government websites in order to clapperclaw the entity that sponsors the site or to put hackers own message. Most of them are only if nuisance not a serious threat. Semantic hacking is one form of defacement which is potentially more harmful as it changes the content of a web page deviously so that the change could not be obvious which results in the dissemination of the false information. An example of possible semantic attack with significant impact would be change in the website of sickness con trol and prevention system which could have a disastrous effect on research and analyses or treatment of the disease. Thirdly the possible threat is of Trojan horse programmes. These are the silent operations and aim to tend undetected by virus scanners. They get the information from the system and delight it to the hacker. (*, 2007)Destructive Viruses or WormsThese types of attack usually spread through emails or some other source of data transfer between computer to computer and can cause the loss of functionality of parts of the network.Worm and viruses are malicious computer program example of famous virus is go to bed mail which use to shut down the system and another example of this kind of virus is I love you email as before long as attachment is opened it start sending copies of the same email to all cover in users address book.Denial of Service attacks (DoS)Denial of service attack is a sort of attack in which hacker bombard the system with number of messages with suc h a frequency that system cannot able to process anything else. It overload the computer system which results in effecting the functionality of the system.Distributed vindication of service (DDoS) attacks is another useful mean of putting computers off network for some time. In Distributed Denial of service attacks hacker bombard the web and email server from great number of messages, by receiving such a high numbers of fake messages system functionality becomes slow or sometime system get crashed. Hackers can easily increase the effect of their distributed self-renunciation of service (DDoS) attacks by using malicious codes to get control of other systems and using these Zombie machines to send more messages on to the servers(Arnold and Pangi, 2003).Domain material body server (DNS) AttackAccording to (Arnold and Pangi, 2003) Communication between two computers on the internet is done by using internet protocol address of computers. To map the name of the website computer consul t field of honor name servers and if DNS give disparage numerical address than user will connect to a wrong server without any information that he is on wrong server. This sort of attacks will be useful in spreading unreasonable information and to divert a customer of e-commerce site from the original site or sometime block access. DNS is hierarchal there for the cascading effect on remote servers would result in traffic to selected site to be redirected or loss. (Cortes, 2004)Compound attacksAs the word compound itself describes these attacks are the combinations of 2 or 3 different attacks simultaneously. Purpose of these attacks is to increase the destructiveness of some sort of physical attack with the help of coordinated cyber attacks e.g. terrorist might place some boom in densely populated area at the same time with the help of cyber attacker they disable the communication setup of emergency services like ambulance, fire, police to impede there response. (Arnold and Pangi, 2003)Routing VulnerabilitiesRouter controls all the traffic on the internet that is there they make it sure that the information in the form of packets, get from the source to destination. In general router is not a radical threat for disruption, but if the routing operation is not well diversified than it can lead to a massive routing attack. So it now a base concern for the router manufactures to follow standards and regulation for maintaining the security on routers. (Cortes, 2004)Sources of AttacksCyber attacks can be launched from different sources depending upon their motives and the target they want to attack, generally we can group them in three categories terrorist groups, targeted nation-states and thrill seekers.Terrorist GroupsTerrorist activities are the great threat for the whole world. Terrorist are not only targeting the physical infrastructure of the countries but now they are targeting the IT infrastructure as well. i.e. hacking the government websites and causi ng serious damage to vulnerable information (Cortes, 2004).Targeted Nation-StatesMost of the countries which dont have the friendly relation with one of the some countries use cyber attacks to sabotage the IT infrastructure of their potential enemy in order to safe guard their own national interests. e.g. India and Pakistan both are nerve-wracking to attack government an defense resources in order to harm each other. Similarly China, America and Russia try to initiate attacks on each other national infrastructure primarily security network (Cortes, 2004).Thrill SeekersThese sorts of attacker are not attacking the network for specific purpose rather they do it for fun and check their ability to break the secured networks. Because of the betterment in technology probability of these attacks are high (Cortes, 2004).Countering Cyber AttacksDue to technology feelerment and use of IT in almost every field of life and day by day increasing cyber attacks it is mandatory to counter all th is cyber attacks and to secure the IT infrastructure as much as possible. Although countering these cyber attacks is not an easy billet rather much complex and consist of several layer of defense. It take time to develop a mature program. The ratio of threat is changing day by day probability of risk is increasing and organizations should change their approach towards information security and take it as a special concern.Establish threat intelligence gatheringCapabilityThreat observeRisk analysisSecurity strategy validationMinimize preservation of malwareSecurity awareness enhancementsContinuous controls updateWebsite protectionThreat superviseApplication security testingPrevent execution of malwareApplication whitelisting to the lowest degree access privilegesNetwork restrictions/segmentingIdentity and access managementProtect the dataProtect the data/data loss preventionDetect and respondHost and network anomaly detectionIncident response programForensicsSource insight of IT risk 2010Established threat gathering capabilitiesIn order to understand the continuously changing threat landscape organization should develop an intelligence gathering capabilities to supervise and plan strategic and tactical responses to threats. This team should consist of qualified professionals who can keep an eye on the current threats and interpret how the organization can be effected by these potential threats and what necessary steps should be taken to modify the organisational security controls and overall security strategy. The prime objective of this time is to varan the threat level than analyze it that how it can effect their organization and than to develop a strategy (Ernst Youngs, 2010).Minimize delivery of malwareBy strictly implementing the handed-down security measures in the organization the threat of malware can be greatly reduced below mentioned are the ways how we can reduce the threat level.Social engineeringIt is one of the most common methods of reduci ng the threat or malware environment. There are number of ways by which this threat can be introduce like phishing or dropping USB in organization premises and hoping some one will use this USB in company computer, resulting employees unintentionally perform a harmful action. Regardless of implementing the intact advance technical controls human factor will remain the weakest link in spreading malware. So the solution of this problem is to aware the employees as much possible against these threats so that the employees protect them self to unintentionally become a source for spreading these malware. Research shows that companies are not doing well in promoting awareness to their employees. The organization should conduct the information security programmes on regular intervals. So that there effectiveness will be increase (Ernst Youngs, 2010).Security awarenessMean to educate the employee about the common threats which are used by the cyber attackers. This awareness can be increas e by including security awareness programs in the companies overall defense in depth strategy. These programs should include education about new threats different examples how employees contribute to the success of the attack and lesson learned what means are used by cyber attacker using social media etc. to target organizational networks and than take the feedback from the employees (Ernst Youngs, 2010). vicious softwareAnother way which can reduce the threat of cyber attack is a use of registered softwares on all user computers. Corrupted or pirated softwares are also the main source of introducing malware in the network.Phishing and DNS redirectionThreat can be introduced in the company network by redirecting the DNS to a malware site while preventing the user from take ining the hack or fraudent site to start with would be preferred but it would not happen most of the time. So it is preferred to block the sites but it is infective to block the sites on domain name bases becau se they can easily be change. So it is more effective to block the sites by IP address. Install the tools which can tell the users when they visit the site whether the site is safe or unsafe the network. At the end decision is again in the employees hand, so awareness to employees is really very important (Ernst Youngs, 2010).Protect the dataData is the most important aspect in information system because at the end it all about the data. By implementing the Data Loss Prevention DLP solution can help stop malware collecting the sensitive data and from sanding data back to attacker home network. On the basis of predefined policies host based DLP can be implemented in order to control the information which user has access. In order to keep the check on the flow of data on the network, network DLP can be use which keep the record which data is going in and out of the network and block the specific data to going out of the network ( Ernst Youngs, 2010).ConclusionAfter considering all t he factors in mind which we have discussed above we came to conclusion that As technological advancement reaching at its peak, at the same time Cyber disgust is also increasing day by day but different organization and agencies are working to overcome all such crimes. As cyber crime become a global issue so globally Governments are putting all their resources against these crimes by imposing legislation against these activities and most of the country have consensus to help each other against cyber attacks. Software companies are ontogenesis most sensitive tools and controls in order to protect organizational or government assets from these threats. The most important thing is to implement all those advance controls along with conventional security measures to safe guard all sort of assets from cyber attack.