Environmental Analysis of Global and International Businesses

INSTITUTIONAL AFFILIATION(S)

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Table of Contents
Introduction.......................................................................................................................................2
Challenges faced by international companies...................................................................................2
Benefits of internationalisation and globalisation.............................................................................3
Environmental analysis......................................................................................................................3
Application of environmental analysis in global businesses..............................................................4
Conclusion.........................................................................................................................................4
References.........................................................................................................................................5

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Introduction
The rapid growth of markets through globalisation and technological revolution has
become an important topic for discussion among contemporary organisations where business
managers and chief executors are considering implementation of internationalisation in their
current practices. The augmentation of digital technologies has been spurred through unique
attributions of data that provides principle input and productivity in many international
companies (Passaris, 2006). In other words, tangible and intangible products like consumer
goods and services and exchange of information through internet and outsourcing has linked
local markets with cross-border activities in successful manner.
Challenges faced by international companies
While dealing with cross border activities, global managers and CEO has to face
many challenges. Political challenge brings high complexities in operations as business
environment in diversified countries differs from each other. Even legal issues like
governmental regulation and trade policies of different countries hampers consistent trading
among diversified units. Cultural difference is most important problem faced by international
businesses, however, many business primary concern becomes transferring their operation in
diversified regions. Economic differences also contribute to challenges as different country
may vary in standard of living that may cause problems in currency conversation and
exchange fluctuations. Language barriers issues are also encountered by global managers that
often results in misinterpretation of information’s. Marketing infrastructure differs from one
place to other which challenges marketing facilitation. Along with these, other challenges like
trade restrictions, high investments and difference in trade practices challenges global
managers while considering international trade and globalisation process (Gatignon &
Kimberly, n.d.).