Contemporary Developments in Business and Management - Report

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Added on 2020-06-04

Contemporary Developments in Business and Management - Report

Added on 2020-06-04

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ContemporaryDevelopments in Businessand Management

Table of ContentsTASK 1............................................................................................................................................1Political and Legal Influences.....................................................................................................1Socio Cultural Impact:-...............................................................................................................3Econocial Influneces...................................................................................................................4Technological Influences............................................................................................................4Economic Influences...................................................................................................................5TASK 2............................................................................................................................................5i. Relevance of ethics and CSR of Standard Chartered and its influence on policies anddecision making..........................................................................................................................5ii. Effectiveness of the organisation's response...........................................................................8(iii) Areas which can be improved as a response........................................................................9Conclusion ....................................................................................................................................10REFERENCES..............................................................................................................................11

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TASK 1Any company operating in the macro environment is susceptible to the effects of externalinfluences which constantly impact its decision making and their operations. Other then dealingwith the forces unfolding domestically, banks like Standard Charteredwhich is a multinationalbank are also indudlged with the task of estimating and taking actions against the globalinflunece (Anderson and McGreal, 2012). So it would be important to see wether this bank hasability of framing proper strategy and developing better response to the forces. Political and Legal InfluencesThose companies which are running there business have to follow the local laws but inthe case of international company or any multinational organisation they have to abide all thelaws of the countires where they are operating their business operations. So any such laws briefsthe market accessibility, pricing of the goods and the manufacturing and process costs whichincludes labour and any raw materials (Bergek and et. al., 2013). Other than this there is alsoworkforce management which includes labour, financing which is related to banking laws,marketing tools which includes advertising, consumer protection laws and technologicaldevelopment like patent and trade mark laws. So multinational banks like StandardCharteredaffects the environment of the host nation where they run there business. Countrieslike UK have an open economy which permits foreign direct investments because they have freemarket economy which has less control of the government. Government paritaly influence thebusinesses but they more act as a facilitator (Bjorklund, 2013). To bring more companies to theconsumer so that they can get quality products and get products at better prices. So it can be saidthat the government supports both the organisation and competitors. Various companies caneasily invest here because there is a political stability as same in Hong Kong. Standard Charteredhas expanded into the Asian markets which has lead them to growth and also helped them inbeating their competitors (Boccardi and et. al., 2014). For instance the Standard Chartered bankin Hong Kong was critised for increasing their interest rates and it was also the same case inother three Asian countries so it brought uproar in the people and their market share wentdrastically down. To act for such activity the government of China can brough various rules thusgiving them direction from the Central Bank of China which they have to obey else they will bethrown out of the business. It may also happen that the country where they are running their1

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activties may pass the laws with the aim of attracting foreign investment (Christensen and et. al.,2011). Political instablity and various other political risk promentitaly impact the MNC and theirbusiness actions. Like, if any country where there is leftist governmnet so according to theiragenda they can try to capture the property of bank through giving the explanation ofnationalisation which they will do through transfering the ownership of resources from private topublic sector (Collins, Gensch and Glorius, 2014). This was experienced by Standard Charteredbank where in Brazil the government ask them to stop certain services as they want to increasethe market of the local banks thus giving them priority.2Illustration 1: Top Business Risks 2016 Around the World

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