Global Business Environment Assignment - Siemens

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1 ...................................................................................................................................3
1. Critically analyse the impact of key factors on the global business environment..............3
ACTIVITY 2....................................................................................................................................5
2. Critically analyse the strategic challenges faced by Siemens............................................5
ACTIVITY 3....................................................................................................................................7
3. Evaluate the global market influence by using the appropriate theories and model..........7
ACTIVITY 4 ...................................................................................................................................8
4. Critically evaluate the influence of globalisation on the Siemens by analysing the key
barriers in doing business internationally...............................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Globalisation can be termed as the process by which businesses organisations develop
international influences in order to operate the business at large scale. Global business
environment can be referred as the environment in different countries that influences the
environmental factors of the organisation. It mainly influences the decision-making and
capabilities to use the resources within an industry. The report is totally based on the globalised
marketing concept of the Siemens. This organisation will be aimed at achieving the higher
profitability in order to establish the different global market for the industry. This study will help
the learners in exploring the concept of globalisation in business context.
This report helps in determining the key factors that derive globalisation and also
accessing the complexities that are concerned with the operating a globalised market. Also, it
will draw a great attention towards the cultural, structural and functional influence of the
business. The report will also concentrate in expansion of the business activities of the Siemens
who is generally aimed at higher profits and sustainability in terms of globalised market network.
ACTIVITY 1
1. Critically analyse the impact of key factors on the global business environment.
Global business environment refers to reach the environment where company operates. It
includes geographic location, culture, politics, technology, rule, regulation, taxation, economy

and so on. While developing the business strategies, it is important to analyse all these factors.
There are some key factors such as cost, environmental, competition, market that affect
environment of global business.
Competitive factors: competitive environment is changing constantly for global
business. Existing and new competitor are implementation the new strategies for taking potential
market shares from Siemens AG. The profit and cost identification unveil the impact of action of
competitors. For example if bottom line profit is less of forecast due to revenue of one product is
below the cost (Akhtar, 2018). Due to this other competitors can reduce their product price and
customer would go to purchase from them. New entrants are always serious threat for Siemens
AG because they enter with innovative products that attract existing consumers and new
customer as well. It reduces the profits and revenue of company at global level. For example if
new competitor start their business near company's location it can attract the consumers.
Sometimes competitors enhance the potential of company by forcing them to launch new
products in order to rebound customers. It helps them to take risk to introduce new products
which can bring profit and loss as well.
Cost factor: In global business environment, there is different cost in different countries.
For example, manufacturing and production cost, selling cost of products, prime cost and
conversion cost, labour cost and so on. Such as labour cost is different in various country that
impact the business of company. Foe example if company want to start its business in other
country then they have to analyse various variable cost such as commission paid to sales
employees, labour wages, energy used in the production process, raw material used in production
process (Collings, Mellahi and Cascio, 2018). With this, salaries of management and employees,
insurance, business and rent rates on office premises and factory in other country. Such different
costs related to business affect Siemens positively or negative both.
If labour cost is law in any country then it would easy for company to make profit. But in
case of high labour cost they have to pay more to employees that can bring loss to company.
Environmental factor: these factor can affect many aspects of business. It includes
employees efficiency, customers willingness to buy products, availability of resources, crop.
Some environmental that can affect the business of Siemens are weather, pollution, climate,
availability of non renewable goods, climate changes, work place efficiency, existence of certain
biological species, availability of certain renewable goods, environmental related laws and