Global Business Environment

This report discusses the dynamic and changing nature of business operations in the global environment and the future of organizations. It also explores the reasons for managing responsibly, sustainably, and behaving ethically in relation to social, cultural, economic, and environmental issues.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Dynamic and changing nature of business and the consideration of the future of organisations
within the global business environment.................................................................................1
Reasons for individuals and organisations managing responsibly, sustainably and behaving
ethically in relation to social, cultural, economic and environmental issues.........................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global environment referred as environment in various autonomous and sovereign
countries (Anıl and Ficici, 2017). It consist both internal & external environment that influence
the decision making of the organisation related to the use of resources and capabilities. This
report covers the changing nature of business operations in global environment. In addition to
this, the future of companies within the global business environment will be discuss. Later, it
covers the need of organisations & individuals to manage & behave ethically with regards to
economic, environmental, social and cultural issues.
MAIN BODY
Dynamic & changing nature of business and consideration of future of organisations in the
global business environment
With context to, today’s dynamic and changing world, organisation are affecthd by
internal & external factors which prevails in the global business environment.This environment
include those factors which are controllable by the management as well as those factors whic
organisation cannot control (Burayidi, 2013). The controllable elements is known as micro
environmental while the uncontrollable elements refers as macro environmental factors. Due to
advancement and innovation in technologies, it is easy to do business and carry out the
operations worldwide. The technology can develop and stimulate growth in the economy. New
innovations and equipments reduce the production cost and improve the productivity of the
organizations. The information is easily processed across the boundaries as well as globally. The
detailed description of factors that affect modern business which rae operating in the macrol
environment are as follows:
MICRO ENVIRONMENT FACTORS
These are those factors that affect the size, strategy, capabilties and capacity of modern
business which nay be imapct micro environmental factors. Below are the factors that covers
micro environment of modern business:
Competitors: Now a days, the competition between the modern business increases that
affect globally. Mainly, in business corporate world, no company can take advantage of
monopoly whether it is big organisation or small. In general,the companies faces a lot of
competition in the market from those organisations who have good brand image and market
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share. For example, the company Philips face a lot of challenges and competition in the market
from competitors such as Samsung, Videocon, Sony, LG, ASUS and so on. Such strong
competitors persuade business to produce different and creative products through which they
can gain competitive edge in the market and build positive image (Charfeddine, 2016).
Customers: In oder to earn the profits, now a days organisation adopt customer centric
aproach. It means comapnies now offer things according to the customer needs and
requirements. They use different strategies in ordeer to earn profit. companies like Marriot
international, ASDA, General motors, ASOS, Tata operates in different sectors promoting there
brands through marketing activities that helps in making relationship with the customers and
enhance them to buy their product. Organisations focuses on those goods and services which an
satisfy the more customer’s.
Suppliers:
Any organisations which functions or operates as a component parts of the modern economy
always purchase and procuring materials from suppliers and vendors. Whether it is small
business or large organisations (Hacioglu, Dincer and Celik, 2012). Suppliers provide
organization proper resources which are essential for institutions to execute daily operations in
an appropriate manner. In present context, companies are searching for suppliers, analyse &
identify the suppliers within industry and choose those suppliers who are providing the best
quality, reliability, warranties, low cost, delivery & so on. These development and growth in
supplier’s environment has direct influence on the operations & activities of organisation.
MACRO ENVIRONMENT FACTORS
Macro environment factors impacts the functions & operations in business. This factors
include legal, political, social, econonmical, environmental and technologiacal factors. The
factors are discussed below and the overall impact is analysed on modern businesses in
woeldwide:
Political Factors: These factors are those elements which have a direct impact on
modern businesses. It is necessary for international business organisations to identify & analyse
stability in political environment and government intervenes of various countries from where
they are planning for their operations. For example, if an organisation planning to operate its
functions in United Kingdom, it must consider Brexit as a crucial aspect in order to follow
policies in country. Another instance, will be an organisation willing to operate in a country with
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political stability like Australia and Germany brings stability in their activities and operations
due to their effective and stabilize policies.
Economical Factors: Global business environment is affected by various economic
elements of respective countries. This includes economic performance of operating countries and
how they help an organisation (Vasilcovschi and Georgescu, 2012). This can be explained with
an example – countries which are having stable and favourable economic conditions are helpful
for rise of business success. On the other hand, if other companies invest in countries which do
not have stable economic conditions. It is not beneficial for companies. Therefore, it is essential
for companies to analyse economic conditions of the country before starting business over there.
Reasons for individuals and organisations managing responsibly, sustainably and behaving
ethically in relation to social, cultural, economic and environmental issues
The business of today’s scenario is derived from resources and materials from society, it
becoomes important for companies to act as interest of general people. This is important
responsibility of personnel and companies for considering Corporate Social Responsibly (CSR)
because these represent initiatives which have been taken by different organisations for benefit
of environment and society(Warkentin, Sugumaran and Sainsbury, 2012).
CONCLUSION
Considering the above information in this report, it is being concluded that global
environment of business consists of various factors, which have great influence on various
business operations & functions. There is significance for businesses and individuals for
adopting ethical conduct and act in good manner.
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REFERENCES
Books and Journals
Anıl, A. R. and Ficici, A., 2017. The Emerging Market Manufacturing Business Groups
(EMBGs) and the Interplay between Innovation in Environmental Sustainability,
Digitalization, Internationalization and Corporate Governance Structures: The Case of
Turkish Holding Companies. Turkish Economic Review. 4(1). pp.55-65.
Burayidi, M. A., 2013. Downtowns: Revitalizing the centers of small urban communities.
Routledge.
Charfeddine, O. B., 2016. Business environment-aware management of service-based business
processes (Doctoral dissertation, Université Paris-Saclay).
Hacioglu, U., Dincer, H. and Celik, I. E., 2012. Economic approach to conflict issue: Investment
in post-conflict situation for international business. International Journal of Business
Administration. 3(5). p.1.
Vasilcovschi, N. and Georgescu, S., 2012. TRANSFORMATIONAL LEADERSHIP AND THE
ECONOMIC COMPETITIVENESS IN SHIPPING INDUSTRY TODAY. Analele
Universitatii Maritime Constanta. 13(17).
Warkentin, M., Sugumaran, V. and Sainsbury, R., 2012. The role of intelligent agents and data
mining in electronic partnership management. Expert Systems with Applications.
39(18). pp.13277-13288
.
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