The Law of Cross-Border Business Transactions

RUNNING HEAD: CROSS BORDER AND GLOBAL POLICY IN BUSINESS
Title: Business Policy in Developing cross-border and Global Organisation
Name of Student:
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Section A:
1. A) Relationship between stakeholders in development of policy:
A stakeholder is generally considered the individual person, organisation, groups associated, or
being affected by the course of action in any organisation. The stakeholder engagement is a key
aspect for the flourish of the organisation. The building of the two-way relationship fosters a
healthy policy formulation that helps both the sides. A business relationship among the
stakeholders develops over time only after undergoing through various stages. In the first stage
of policy formulation, the stakeholders identify their concern and problems. The internal
stakeholders operate largely by their own where their main concern is their business (Kujala,
Heikkinen, and Lehtimäki,2012). In the next step the other stakeholders including the
organisation comes to a pro active ways where one set of stakeholders identify their benefits or
problems and concerns and come into direct relationship with the organisation and the internal
stakeholders in turn respond to their concerns. This relationship fosters the policy-making
strategies as it rules out the chances of any particular stakeholder to dominate in an autocratic
way.
1.B) Impact of Social, economic and political factors on the global strategy:
The international and cross border business is a functional key for boosting up the
business environment. However, this is subject to various social, political as well as economic
factors that affect the strategy formation of the business (Caliguiri and Colakugru,2007). Since
the global organisations develop relationship between various neighbouring states and region, the

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form and structure as well as the strategy in the various regions will vary according to the socio
economic and political conditions. The main factors affecting the business are:
1. Social factors: the main social factors that influence the business environment of the cross-
border organisations are communication process, the cultural differences between the nations
involved in the cross border business, educational level and income level of the countries
involved. The attitude towards imported products and the attitude of the nations concerned
towards the customer service as well as the product quality are also the main contributing factors
in the policy formulations. The social factors also is a key pointer for the sales of the products
since it largely shapes the choice and interests of the customers A company will thus, set an
import relationship with an international organisation only when it finds that the product is
socially accepted in the region. For example, Pepsi Co communicates largely through ads that the
people can relate through the festivals of their region and thus form a sense of belongingness
(Vecchiato, and Roveda, 2010).
Economic factors: the policy formation of cross border organisation is largely depended on the
economic factors. The inflation rate, the value of currency, the public debt as well as the
strengths of the economic performances contributes to the policy formulation largely. The
relationship between the two countries is related to the inflation rate. It has been noticed that a
country with a consistently lower rate of inflation has an increased purchasing powers. This
again affects the changing interest rate and currency values. Since a large public debts brings i
higher rate of inflation, such countries become less attractive for foreign investors.
Political: the political factors that may influence the policy and strategy of the global
organisations are the risk of violence, the political uncertainty that in turn leads to economic

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uncertainty, confiscation, nationalisation and forced violence that may lead to the tumultuous
situation in any business. Since the political factors are the most unpredictable influences, the
investors generally try to refrain from investing in a politically unstable country. Again the
government’s involvement in the trade unions and the other trade regulatory factors also affects
the strategy formulations.
1.C) Role of domestic, national and multinational interest in strategy making:
The strategy making policies must include the procurement of the national as well as the
multinational interest for all the partners and companies involved. The domestic interests include
the conditions of labours, the economic growth, adhering to the regulations of government and
the increase of the market size (Guo,2007). The business interests can also operate in terms of
trade associations as well as employee association. Any company must see to the fact whether
the merging, acquisition or partnership is catering to the primary domestic interests like the
proper work environment and wage for the employees and labours, or that the domestic laws are
maintained in the course of business. The catering to the domestic interests will attract more
employees in the area. Again, the protection of the natural environment and the resources also
focuses on the domestic interests. The national interests, however, refers to the protection of
social responsibilities, the growth in the national GDP, the rate of employment all over the nation
and the protection of national laws and regulations (Elis,2012). The policy thus, must be
formulated so that the partners concerned can achieve these interests in order to make it
acceptable to the stakeholders. For example, a country where Tobacco Consumption is banned
by terms of law will not attract a foreign investor of any cigarette Company. Similarly, the
multinational interests refer to the flourishing of business in the various nations. For example,

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Microsoft though offers the same software programmes globally but, has to adjust those
programmes with the aim of matching to the local language.
2.A) Policy positions of partners in Organisational Strategy:
In the implementation of the strategies, it is important for the partners to have a balance of
power. The partners generally stick to some positions regarding the strategy implementation,
where:
The partnership will have social and political acceptance
The sense of ownership remains strong (Payne and Frow 2006)
The partners generally stick to the position where the agreements are based on recognised
responsibilities, the joint obligations and commitment from each partner.
The different wings in an organisation have different policies. The cross border or a global
organisation must keep in mind that the working programmes are typically based on the
strategies chalked out and implemented and a proper consultation is done with the local actors.
The partners also must have the policy of having a common determined objective and they must
implement a strategy structure that would follow the objective and target.
The policy positions of partners help the organisation in the proper functioning of every
wing in it. The different sectors in the organisation will know their tasks and responsibilities and
thus, will have a definitive nature of cooperation.
2.B) Conflicts among Stakeholders and solutions:

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Stakeholders for any organisation are of two types, namely the internal and the external
stakeholders. While the former implements and decides the policies, the later faces the
consequences or result of the policy. Thus, it is inevitable that conflicts would arise among them.
The common conflicts between the stakeholders are:
The expectations of project stakeholders often bring in some wary situation for the project
managers and can usher in dangerous organisation people of the consequences. Project
stakeholders, according to the conventional definitions can be either the people or even the
organisations (Beaulieu&Pasquoro, 2017). Before discussing the challenges that a project faces
due to the needs of the stakeholders, it is important to first identify the major issues of conflicts.
According to Thamhain and Wilemon, the seven potential sources of conflicts are,
1. Schedule Conflicts
2. Conflicts regarding priority
3. Technical conflict
4. Conflict over the administrative principles
5. Personality Conflict.
6. conflict regarding the cost.
One of the major challenges that the project face in resolving the above mentioned or any
additional conflict is the majority of the people’s resistance to changes. If a tangible product is
being made it is assumed that things and opinion will change with the passage of time and this
will evaluate the business process. further recommendations regarding the improvement of the

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product can also be implemented. The major challenge is that the stakeholders are likely to react
differently against these changes according to the degree they are affected by the change.
Solution:
A Business Analyst wants to ensure that the right problem is solved and not the perceived
problem. They can use the ‘The 5 'W's technique – Who, What, Where, When and Why?’ to
identify the root problem. Once the problem is identified, create a problem statement.
A good problem statement will:
 Identify the problem, opportunity or challenge
 Identify who is affected by the problem and what the impacts are
The organisations can also provide a platform for resolving those conflicts. The circle of
reflection process is one of the most effective one. The management can play the role of
facilitator in that case.
The management can also hold an updated analysis of the stakeholder and plan for the
communication process.
2.C) Organisational Model supporting Integrity:
In general terms, the integrity in an organisation refers to the functioning of the organisation in a
consistent manner keeping in mind the values and purpose of the organisation. The main
problems that can disrupt the integrity within organisation are the changing ethical climates,
perceptions of unfairness in the treatment of the employees, responsibility diffusion and role
conflicts. The organisations can:

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1 .Identify the appropriate value : each person has separate set of ethical values. It must be taken
into account that the personal values do not clash with the organizational values. In many cases it
has been seen that employees are influenced by the words of the CEOs and try to enact
accordingly (Gunkel, M., Schlaegel, Rossteutscher, and Wolff, 2015). However, this can distract
the values and thus it is necessary to ensure that the values are built into all the decisions of the
organisation. The flow of equality in ideas and organisational vision will usher in the integrity.
2. OCTAPACE: this is an acronym for openness, consistency, trust, authenticity, pro-action,
autonomy, collaboration and experimentation. The incorporation of these ideas in an
organisational strategy will boost u the integrity as the main aim of this system is the all round
human development in an organisational structure.
3. Mapping ethical Culture: the ethical culture can be said to be the conglomeration of certain
values that underlines the mission and vision of the organisation. Since the performance of a
global organisation has a large geopolitical and social spread, they have to deal with a large
variety of corporate culture. Mapping the ethical culture and determining the particular culture
will incorporate the integrity.
3.A) Key Economic Drivers:
In order to conduct the external and international business in the right manner, it becomes
critically crucial for an enterprise to ensure that it is being able to successfully identify the Key
economic drivers which help it in conducting the different business operations and also go a long
way in seeing to it that they are essentially able to gain success (Binder 2016). Hence, the key
economic drivers pertaining to this business can be stated to be as follows:

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Inflation: The Inflation can be understood to be one of the key drivers to change as it contributes
towards successive business practices. If the inflation of the economy can be mentioned to be
considerably high then in such a case, the business operations are severely affected.
Corporate Earnings: The corporate earnings can be mentioned to be another key economic driver
for trade (Guo 2017).
Geopolitical Disruption: The disruptions in the countries where the business takes place can be
largely understood to be another driver of economic change. With respect to this, the
impeachment of Trump along with the climate change can be stated to be a driver of change.
Tax policies: The tax policies can be essentially understood to be another driver affecting
business operations considerably.
3.B) Impact of existing Policies:
The new cross border trade and related activities have a comprehensive influence on the existing
policies and the strategic commitment. In such a scenario, it is essential to mention that, as the
business environment has become rather comprehensive in nature, it is integral for the different
enterprises to plan accordingly and come up with strategic solutions. Hence, due to globalization,
the business policies have become more considerate regarding international trade, they take into
consideration foreign currencies and lastly the risk management has been moderated accordingly
as well (Gunkel et al. 2015). The international business and related operations have brought
about a modification of the tax rates as well and the manner in which the businesses are
generally financed. Hence, in consideration of this, the new policies look out for these aspects in
order to ensure successful operations.

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3.C) Ways of unexpected operational fundings:
The various unexpected operational activities which might take place during the global
organizational policy and the strategic commitments can be stated to be as follows:
Labor problems: The enterprise may undergo a considerable labor issue and in line with this, the
firm would be required to fund these ways through its net cash.
Risk in operations: Another risk which may be faced by the enterprise can be stated to be the
issues relating to the risk in daily operations (Bodnaruk, Manconi and Massa 2016). The various
risks in this scenario faced by them can be dealt with by funding such operations with their cash
reserves or by taking assistance from parent company.
Environmental issues: The firm may be faced by issues relating to the natural disasters which
may take place in the country and lead to scenarios which may not be favourable for the firm.
However, the enterprise may be required to see to it that, it is being able to meet with the needs
of its overall operations in the right manner.
4.A) Review of the theories on strategic planning:
The theories of strategic planning in organisations can be traced back in three distinct categories
namely, the industrial era of 1950’s till 1970’s, the entrepreneurial era of 1980;s and the present
era of globalisation. The last era needs a distinct mode of strategic planning since this is the time,
when the maximum of global or cross border organisations are emerging. Beard& Dess argued
that in the present time, the industries are aiming at entering into an already doing business. thus,
the strategic planning are done after reviewing the possible opportunities and threats of the

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business and thus, the corporate growth strategy is an ideal approach. When the global set up
lacks in any competencies the stabilisation strategy helps in coping up the matter.
Since the global organisations deals with many cultural and economical differences, these
models of strategic planning are ideal for dealing with the differences of opinion and
environment. Wright et al argues that the retrenchment strategies, stability strategies and the
combination strategies maximises the resource of the organisation. These strategic models also
help in altering the prevalent mode of business and in turn benefit the management in developing
variations of the subsystems within the organisation.
4.B) Effective ways to improve communication and co-ordination:
The global organisations have to understand the diversity and include them in their planning
process for successfully implementing the communication process. They have to focus mainly on
the strengthening of bonds and encouraging collaborations. The following can be done for
boosting up the communication process:
1. Focusing on the team building: The companies must have quality professionals who will help
in guiding the team in connecting with the other partners. For example, the company can heir
good translators for the smooth running of communication so that the members in the team are
benefitted (Shenkar, Luo, and Chi, 2014). Again, everyone must be given the opportunity to
participate in the discussion.
2. Trying activities that are different: in being a successful global organisation, the companies
must display that their bond are beyond just verbal communication. They must also be flexible
enough to try out some out of the box activities for overcoming the diversities.

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3. Creating cross-departmental teams: the organisations can also focus on creating a diverse
council with members across various forces that do not in general get the opportunity to interact.
This would give them an idea of the cross-cultures and will have the opportunity of
brainstorming, strengthening both the teams and their knowledge on diversity.
Section B:
5.A) Social and political trends influencing Global Organisational strategies:
1. Quick growth of the emerging markets: the main factors that affecting the long or short term
business strategy planning is the stabilising labour market (Czinkota, Ronkainen,2009). This
helps the government in keeping a buffer and reduce the chances of collapsing. However, the
global management has to still, look into factors like stability, cultural cohesion, and corruption
level before venturing into the market.
2. the use of data analytics: as a result of the digital revolution, the executives of the global
market have the accessibility towards more connected devices and thus are open to various data.
the data analytics generate informations and thus the management can gauge the sales or the
popularity of the products or the target audiences.
3. Instant access of products to consumer: consumers also are in present era increasingly
connected . Thus the global business must consider the fact that the consumer have the option to
switch their preferences. The strategy will then have to be made keeping in mind the
competition.
4. Technological innovations: the rapid technological innovations and the wide internet access
also affect the strategy formulation.

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5.B) Future trends that can affect the business strategy:
1. softening of US economy:
2. US China relation:
3. Rapid internet access (Olcott,2009):
4. increased use of chatbots
5. preference of nature fuel:
5.C) Better strategic planning Recommendations:
1. Knowing the territory: the companies have to know their territory of operation and then must
be able to differentiate their value proposition to the exact locations.
2. The companies must refrain from the freezing of their strategy. They must be flexible enough
to deal with future problems (Setnikar-Cankar, S., Seljak, J. and Petkovšek, V., 2013).
3. must keep ample amount of time to sit with the partners and construct a suitable conceptual
base.
5. They must build a co-ordination and cohesion among the cross-cultures and identify the needs
of the stakeholders.

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