Benefits and drawbacks of global business environment - Assignment
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Title: “To ascertain the benefits and drawbacks of global business environment fororganisation that operates its business globally” - A study of First Mile .INTRODUCTIONGlobalisation refers to the most advance factor that help in developing economies, bymaking market at both national and international level more efficient. It increases level ofcompetition among organisations, limited military conflicts and spread business across othercountries. The present report is going to highlight the number of benefits and risks that areassociated with globalisation, which need to be considered by companies before globalising theirbusiness (Lerner and et. al., 2018). This process is mainly important for integration as well asdevelopment of countries in UK, therefore, a case of First Mile is taken. This London basedcompany deals in commercial recycling sector, that works with other companies in recyclingtheir wastages as much as possible, with appropriate management of same. Currently, it servesover 25,000 businesses across its nation and to gain more benefits, it is going to expand itsbusiness market. Therefore, what this company needs to consider for business expansion, somebenefits and drawbacks of globalisation are being discusses in present research. Hereby, adiscussion on effect of worldwide operation on execution ofrespective company, with somerecommendation to overcome from the same is also done, with different authors' point of view.Research aim“To ascertain the benefits and drawbacks of global business environment for organisationthat operates its business globally” - A study of First Mile .Research objectivesTo understand the concept of globalisation and global business environment.To assess the benefits and drawbacks of global business environment for First Mile.To identify the impact of global operations on business performance of First Mile.To recommend the ways through which First Mile can overcome drawbacks of globalbusiness environment.
Research questionsWhat is the concept of globalisation and global business environment?What are the benefits and drawbacks of global business environment for First Mile?What is the impact of global operations on business performance of First Mile?What are the different ways by whichFirst Mile can overcome drawbacks of globalbusiness environment?Rational of researchAs globalisation today, is considered as the most important concept that enabled businessentities in increasing the intensity of output. Therefore, the main agenda behind carrying overresearch on this topic, is to understand how globalisation leads to deliver benefits to allcompanies (Collier, 2018). This would help researchers in enhancing their knowledge inrespective field, that makes their career bright as well. Along with this, by understanding what acompany needs to consider before globalising its business, will lead an individual in operating anentity in future more profitably.LITERATURE REVIEWConcept of globalisation and global business environmentAccordant to John Williamson, 2019, Globalisation can be defined as the proce4ss withthe help of which the economies of different countries, governments, companies integrate witheach other in order to make ease to the business. International Business organisationEnvironment mentionto the overallsurroundingsconsisting of internal and external factorsimpact on the working of organisations dealing in different sectors in whether positive ornegative manner. While making the operations of business to spread across the world, it isimportant to take into consideration about the different factors which impacts upon the workingof an organisation and also on their operations. As such by doing market analysis, it will bepossible to know about the market conditions, tastes and preferences of customers, governmentallaws and many more which will make organisations to think upon their decision on theestablishment or non establishment of business in the new country. As the working oforganisations are also controlled by laws and regulations of government, so the understanding ofnot only the legal environment will be enough for companies but the overall study of businessenvironment will provide the company with right prospects and proper market analysis. The
main contribution in increasing globalisation is of technology which is making things easier andalso is an important part of organisations. Globalisation has also impacted upon the level ofoutput which was earlier provided by companies and after the implementation of globalisation.So the positive change in the level of output of companies after globalisation made it as trendincreasing day by day. Along with this, it has also considered theinternational business concernenvironswhich is the main source which decides about the prosperity and nonachievement of anadministration in theenvironment.Benefits and drawbacks of global business environment for First MileAccording to Hitesh Bhasin, 2018, for an organisation, there are many benefits anddrawbacks which it could may have. For First Mile organisation, the benefits are related toincrease in their incomes. As with the help of business expansion, the processes of business willincrease along with their sales so this will positively impact upon their sales and revenues. Inaddition to this, it is also related to increase in goodwill and brand image of organisation whichwill also one of the positive effects of international business concern environsas the businesswill now be operated over boundaries and this will increase the business awareness in the mindsof people. Further, the positive impacts also related to knowledge of new market and newtechnologies. There has been a significant different in the working of one country to anothercountry. As such in technologies or in other related aspects so by coming to new countries, FirstMile will be able to find new and simper ways of working which they may also make use in theirown country for making improvement in their production processes. On the other hand, there arealso some drawbacks which could impact negatively on the working of organisations which isrelated to wrong analysis of market due to lack of knowledge which could provide the companywith wrong results and estimations impacting upon their working and makes the business to failin new environment. Additionally, impact is also related to interdependence of companies oneach other in relation to different sources or any other related things. So this will alsounfavourably effectupon theexecution of organisation and is counted among the negativeimpactsinternational business enterprise atmospherewhich an organisation needs to suffer as animpact of global business environment.Impact of global operations on business performance of First MileAccording to Joseph Nyameboame, Abubaker Haddud, 2017,with the assist of makingthe business concern dealings at the international level it will be possible for the organisations to
make improve their working and performances at the international level. There has been severalmore benefits which an organisation could have with the help of making their operations atglobal level. This will help the organisation to have economies of large scale as by businessexpansion and processes of the organisation, it will be possible for First Mile to improve theirperformances and also to lower down their cost of production. In addition to this, First Mile willalso come in contact with new talents such as employees which will assist inthe achievement ofaims and verifiablesof organisation in positive way impacting positively on their performances.It will also provide the business with the ability to take more risks on more grounds for creatingpositive impact on their revenues and incomes. So it increases the possibility and chances ofgrowth and development of organisations as well. Global operations also provides the companywith the ways to know about rules and regulations of different countries and customers ofdifferent countries for the betterment and growth of the organisation. Better knowledge ofcompetition will help the companies such as First Mile to make more investment in technologicalthings that could provide them with competitive advantage over their competitors. First Mile willcome in contact with different situations that could help them with new experiences and newissues. This will make First Mile to change and develop more better strategies impactingpositively on their working and processes. With the help of these things, First Mile could getaffirmative effect of economic process on their working and also on the business concernprocesses and output as well.Different ways by whichFirst Mile can overcome drawbacks of global business environmentAccording to Robert Azuayi, 2016n it is important for companies such as First Mile tomake review of their strategies and policies from time to time. This will help in knowing abouttheir effectiveness and the possible improvements which are needed to make in the strategies andpolicies or the organisation. In addition to this, proper analysis of market and market conditionswill help First Mile to deal with the destructive effects of internationalbusiness environment sothat the development of good policies and strategies could be done for reducing theperverseimpacts of international business concern environs. Legal factors should be at utmostconsideration because, this makes it possible the closure of business in the market. So it isrecommended to First Mile to proper follow the rules and regulations that have been prescribedby the government to reduce its intervention of government in the working of organisation.