Critical Issues in Business Management : Assignment
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Added on 2020-07-23
Critical Issues in Business Management : Assignment
Added on 2020-07-23
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Critical Issues in BusinessManagement
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Reason behind TESCO growth when other companies failed.........................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................7
INTRODUCTIONEvery business organisation faces several issues and problems in their workingenvironment. There are various number of critical issues which affect management of business inpresent and future context (Maylor, Blackmon Huemann, 2016). Thus, managers have to takeproper steps which enable a business organisation to deal with them properly. Hence, businessgets affected due to several major reasons which are related with a theory of VUCA. A basicdescription will be provided for this relation by using case study of TESCO who exist SouthKorea at the time of Globalisation. There are various drivers identified for every concern whichare helpful in expansion and exit. Along with this, a major reason behind exit of a company fromSouth Korea market is also assessed here. Globalisation is defined as a process in which people change their ideas, views, goodsand services by spurring a more relation with world’s culture, economy and government as well.This process is helpful in making a business expansion in other country so that their economywill get improved and business would become able to ascertain more profit with proper timeframe. One of the major examples of globalisation is Military Cooperation between countries.One of a best example of this context is MacDonald whom are one of the largest food chainorganisation in the world. They are already dealing at vast level in different regions of everycountry. Thus, globalisation made a positive impact on business as well as in a country where anorganisation will be going to start venture (Mouraviev and Kakabadse, 2017). Along with this, ifa business exits from other country then their economy also get affected which is another majorreason of Globalisation. Brexit is one of the main examples which can be considered as anegative impact of Globalisation on both country’s economy. For explaining about the generic condition and situation, every business organisationused an acronym. The word which denote such thing is VUCA which reflect on volatility,uncertainty, complexity and ambiguity. This get utilise by many large business associationwhose major aim is to ascertain more and more profit through strategic leadership concept.Several major key drivers of globalisation are as follow (What are five major kinds of drivers forglobalization of firms?2017): Technological drivers: Technology plays an effective role in shaped a business throughglobalisation. Many new inventions and rapid growth of internet is an example of1
technological driver’s impact on business modification.TESCO have to use many newinventions which enable an entity in maximise their operations of working. Along withthis, every new technology is volatile in nature and get changed with time frame. Thus,managers have to analyse such fact and make appropriate modification in theirproduction through that.Political Drivers:Every government has to liberalise their rules and regulations so thatforeign companies can directly come for trade and contribute in the economy of a countryas well as increase their area of trade (Peppard and Ward, 2016). A major reason behindTESCO exit from South Korea is government whom changed their policy for large supermarket entity. Thus, government situation is uncertain in nature and also get volatile aswell. Although, by winding up business from South Korea their competitive marketgrowth get decline which might be not appropriate for their future context. Rapid economic growth in South Korea market: Economical condition of South Koreanmarket is good when TESCO enter into such market world. Along with this, South Koreahave good relation with all their belonging nations which enable in making operationseffective and invite many such association for further production and development aswell. Cost drivers:Global companies can take advantage of cost drivers and thus, prices getvary country to country. Hence, cost drivers also made a vast impact on the globalisedbusiness firms. Many large association whom are dealing in other countries put theirprices low so that chances of gaining market share get increases. TESCO choose anoption under which they are lowering their prices. Hence, a major reason behind theirsuccess is offering low prices. Customer demand: Demand is define as the process which enable an association toproduce appropriate quantity of product in relation to target market. It is simply aquantity which enable to satisfy user needs and wants appropriately. Thus, every businessmanager and entrepreneur operating business in such market world where customer aremore demanding about goods and services. TESCO managers analyse that needs andwants of every user is high in South Korea as compared to several other nations. Thus,they start rendering activities over there and create a good consumer base as well. 2
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