(Solution) Global Business Environment Assignment
Added on 2020-12-30
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Global Business environment
Table of ContentsINTRODUCTION .....................................................................................................................3TASK 1 ....................................................................................................................................3P1 Key factors of cost, market, environment & competition ................................................3TASK 2......................................................................................................................................5P2 Explain strategic challenges .............................................................................................5M1.Impact that key factors ....................................................................................................6M2. Strategic challenges in context of risk and diversification ............................................6D1 Global business environment .........................................................................................7TASK 3......................................................................................................................................7P3 Influences of globalisation ...............................................................................................7M3 Stakeholder engagement .................................................................................................9D2 Strategies .......................................................................................................................10TASK 4 ...................................................................................................................................10P5 Different ways of decision making ................................................................................10P6 Routes to internationalisation .........................................................................................11M4 Key barriers ..................................................................................................................12CONCLUSION........................................................................................................................12
INTRODUCTION Global busiess environmnt is important for an organisation to perform its businessactivities at global level so that it can generate more revenue. In this report chosenorganisation is Siemens which deals in electrical and electronics business, it is incorporatedin Germany. The aim is to capture more market share by globalisation. It covers the varioustopics such as: key factors of cost in context to globalisation, market & environment, strategicchallenges, market influence on company’s culture, structure and functions. Influences ofethical and sustainable globalisation on organisational functions are also discussed. Apartfrom this effect of globalisation is also analysed on organisational decision making andstrategy. TASK 1 P1 Key factors of cost, market, environment & competition Globalization is concept which helps the companies to expand its business. Itintegrates national economies through trade, capital flow, investment, technology etc.Through it Siemens can grab more market share in other countries and generates moreincome. There are various factors which can affect cost, market, environment andcompetition.Cost factor: An organisation can focus on economics of scale by which it can produce goodsin bulk so that cost per unit can be minimized. Siemens can apply this concept and useinnovative technology so that its production expenses will reduce so that price of finishedgoods can also be decreased. As a result it can lead in the market by providing electronic itemat reasonable value so more number of consumers can purchase it. So that company cangenerates more value as profits. Siemens can enter in newly industrialised countries wheretransportation system has advanced and labour cost is low. It helps the organisation to expandits reach and minimum labour expanses can reduces the overall cost of product. As a result itcan produce products at reasonable price and generate more income. It is related toglobaltrade and commerce.As comapny invest 3.925 dollars in reseach & development in the yearyear so thta it can analyse that what steps should be taken so that cost of production can bereduce and organosation can generate maximum profits.
Market drives: Company can choose those industrialised nations in which per capita incomeof people is high so that their style can be superior. Due to which they can afford the highervalue of electronic items and Siemens can maximize its sales. As a result they can grab moremarket share and increase its revenue. It can increase its distribution channel in variouscountries so that company’s products can reach to more number of consumers. So thatmarket presence will maximize and it can increase its revenue and untapped areas can becovered by organisation.Siemens can advertise their brand so that more number of personscan be aware from the products of organisation. As a result brand image of company canimprove and it help to the corporation to increase its goodwill and it maximize the trde andcommerce of organisation. As organisation is a prominent market of medical diagonosticsequipment & its medical health care departmnet generates approx 12 % of corporation's totalsales. Government drivers: All countries have different tariffs as per rules and regulations ofgovernment and its policies. Siemens can target those nations in which tax rate is minimumand less legal compliances so that it have to pay less tax. As a result revenue of companydoes not get affected. It can enter in those countries where government allows privatisation sothat it can take benefit of it and start its own business. As a result it can earn more profits.Forexample, it Siemens does not follow envirnmental law than it can cannot adjust in the cultureof other countries.Competitive drives: It can enter in those markets where competition is less so it anopportunity for it to grab more market countries in which less competition so that it cansurvive in that nation for a long time. Siemens can try to create competition by providingquality products at reasonable price. As a result it can create monopoly in the market and earnmaximum profits. It can generate more revenues by brings innovation in its technology sothat efficiency and productivity can be maximized. So that it can capture and lead in themarket. These all factors drives to global trde and commerce. To beat the competition itmakes joint venture with Zhushou which belongs to China so that it can produce AC driveelectric locomotivtives. It is beneficila for the growth of comapny and it can exopand itsmarket share.
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