Assignment on International Business (IB)
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Added on 2019-12-04
Assignment on International Business (IB)
Added on 2019-12-04
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Business Project Report1
EXECUTIVE SUMMARY International business refers to exchange of product and services across the nationsborder. Foreign trade help company in ensuring optimum utilization of resources. With the thelpof international business Hilton is able to assure global recognition along with constant growthand success. Further, in this report it has been identified that there are different laws foroperating business in diverse country. Such as entity is required to follow Companies Act 2006while doing business in UK. On the other hand, provisions of Companies Act 1956 should beadhered while dealing in India. Culture have direct impact on the operations of company inforeign country. Therefore, the cross cultural differences have been into consideration to ensuresmooth operations in foreign country.Further, to identify opportunities and threats in targetmarket PESTEL has been found to be an effective model. It further helped in identifying theimpact of political, economic, social, technical, environmental and legal constituents on theoperations of company. Thereafter, it is important for company to create social impact whichmeans performing activities that are beneficial for community as a whole. In this respect, Carollpyramid has been found to be useful for Hilton. With the help of this, Hilton hotel has been ableto fulfill its responsibility towards society, local communities, employees, customers,government and shareholders. Further, for developing the effective business strategy, companyhas considered EPG model. It is further based on three dimensions, ethnocentric, polycentric andgeocentric. 2
TABLE OF CONTENTSEXECUTIVE SUMMARY ............................................................................................................2INTRODUCTION...........................................................................................................................4Trading-across-borders....................................................................................................................5Legal Factors................................................................................................................................6Legal Factors..............................................................................................................................10CAGE.........................................................................................................................................10SOCIAL IMPACTS.......................................................................................................................12Carroll CSR Pyramid is a corporate social responsibility.........................................................12Stakeholder Theory....................................................................................................................15CRITICAL EVALUATION of The Theory .................................................................................18CONCLUSION..............................................................................................................................21REFERENCES..............................................................................................................................223
INTRODUCTIONGlobal business means international trade in which companies sell products and servicesacross the world. Global business can also be termed as an international business in whichcommercial transactions take place in between two or more countries. Commercial transactionsmay be relayed to private entities, government, sales, investment, logistic or transportation etc.Private organizations undertake such transactions for the purpose to earn profits. In case ofgovernment, they have to undertake such transaction to earn profit and for some politicalreasons. International business activities include cross border transactions of goods and servicesin between two or more countries (Saunders and Lewis, 2014). Transaction of economicresources includes skills, capital, people etc for producing and delivering the physical goods andservices. That may include finance, insurance , banking constructions etc. Various multinational organizations such as Hilton provide its services to the differentcountries such as India and United Kingdom. Hilton is a global hospitality organization thatserves and manages its customers with the help of several hotels and resorts. It is a public limitedorganization that provides services across the globe. Hilton has over 765,000 rooms in more than100 countries and it is the largest hotel chain in the world in terms of rooms as well asinternational presence. Its vision is to fill the earth with the warmth and light of hospitality. Itsmission is to become a prominent global hospitality company as well as to be the first choice ofcustomers, team members and owners etc. (About Hilton Hotel Worldwide, 2016). Hilton itselfstands for H-hospitality, I-integrity, L- leadership, T- teamwork, O-ownership and N-now. ByHospitality, their mean is to provide or deliver the best services to its guests. Integrity refers todo the right things at all the times. By leadership, their mean is that they are the leader of theentire hospitality industry as well as in their community. Teamwork states that it believes in teamefforts. Ownership refers that they are the owner of their actions and decisions. Now means thatthey operate with a scene of discipline and urgency. With the luxuries facilities, they also provide budget and premium services to their guests(About Hilton Hotel Worldwide, 2016). Further, the report will include a trading of servicesacross the border of India and UK by Hilton Hotel. Also, it will describe about various socialimpacts that Hilton faces in the markets of India and UK. At last, evaluation of the theories willbe done in the report and recommendations will be given. 4
TRADING-ACROSS-BORDERSTrading across border refers to the flow of goods and services outside the nationalboundaries. It helps the organizations such as Hilton to expand its business in the global market.It also enhances the market share and profitability of an organization. Trading across borderincludes various solutions, ideas and strategies (Trong Tuan, 2012). This helps companies inproviding their services across the nation. Hilton is using various trading laws and regulations toenhance its market share as well as profitability in the international market. These are as follows:PESTLE of INDIAPolitical FactorIdeologies of severalpolitical partiesTaxesIndia is the largest democratic country in the worldwhich involves federal form of government system.Because of this, hospitality firms such as Hilton getsinfluenced by several government policies, interest andideologies of several politicians and parties etc. Taxation is another political factor that may affect theactivities of Hilton in India. There are several types oftaxes such as service, sales etc. which lead to increasethe prices of the hotel. Increase in prices results todecrease in demand (Baden, 2013). Economic FactorsStabilityReduction in industriallicensingSince, the industrial reform policy was introduced inIndia in 1991, its economy is stable. This stability helpsthe firms such as Hilton to expand its businessconsistently in the region that is of India.Reduction the industrial licensing and increase inliberalization and globalization have lead theorganization towards expansion within India. Social FactorIncrease in populationIncrease in population will provide more number of5
Rise in employmentcustomers to Hilton in India. In such case, Hilton canexpect large growth in India (Nalband and Kelabi,2014). Increase in the employment will lead towards the rise inthe living standards of people. This may be helpful inenhancing the business of Hilton in India.Technological FactorsOnline Rental servicesTechnology has a huge impact on the business of Hiltonin India in the form of online rental services such asAirbnb which allows private individuals to rent roomsor homes directly (Ojo, 2016). The major threats thatAirbnb possesses on hotels such as Hilton is that itshosts can avoid expenses such as hotel taxes and fireregulations which means that they have much loweroperating costs. This enables Airbnb hosts to undercutthe rates of hotel rooms in many markets.Legal FactorsDisabilitydiscriminationlegislation,Minimumwage, other. Indian has introduced many legislation such asdisability discrimination. It may affect Hilton's cost anddemand however will help in boosting there production.Hilton is also required to take care of the laws such asTrade mark Act 1969, Essential commodities Act,consumer protection Act 1996 etc. In order to expandits business in India, Hilton is required to followvarious regulations related to employment, health andsafety, monopoly trade and product as well as EU &international laws (Ridley-Duff and Bull, 2015). Environmental Factors6
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