Global Business Environment and International Strategy Report

Table of Contents
INTRDOUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Global Business Environment can be described as a term which includes various internal
and external factors. It can be described as the environment in various independent countries
with factors that can affect the decision making process of organization. International strategy
plays a very important role in defining goals, understanding various market dynamics, and
studying resources and analysing the international market. It helps a business environment to
search for prospective markets, and plan strategies. The present report covers the brief discussion
about UBER company in its domestic market and overseas market. The report involves the
market place of US which is a dominant market for Canadian goods receiving more than three-
quarters of Canada's merchandise goods in a typical year. The other marketplaces of North
America involves Canada, United States, Mexico, Central America and Caribbean. According to
Mike Peng, Globalization involves the close integration of peoples and countries of the world. It
is also important that there are three ways of understanding globalization.
This case is an example of FDI. The FDI offers the firm the increased control over its
international business operations, as well as increased profit potential(Griffin, Pustay). There are
three methods for FDI which involves greenfield strategy, acquisition strategy or brownfield
strategy and participating in joint ventures. The conduct of IB operations depends on two factors
which involves objectives and the means by which it intends to achieve them. The operations are
affected by two sets of factors which involves physical, social and competitive. In context to
Company, it followed a comprehensive model of Diversification which involved Product and
geographic diversification strategy. There are four strategic choices which are based on the
integration-responsiveness framework which involves home replication, localization, global
standardization and transactional strategy.
MAIN BODY
Various cultural values that attributed to the failure of the company between two countries-
UBER is an American service provider in mobility sector started in 2009 with its
headquarters in San Francisco, California, U.S. It offers services like ride-hailing, package
delivery, freight transportation, couriers and food delivery. In the past decade, the company
explosive growth and controversy made it to the most emerging fascinated company. In context
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to both the countries it involves the concepts of high context and low context refers to the way
people communicate with each other in different cultures. In context to china, there are people of
a high context culture as they are tend to be more important in long term relationships and
loyalty and involves fewer structures and rules in a place. The culture of china involves
unspoken information which is transferred by default during communication. In context to
United State, it follows a low context culture and involves people who are very task oriented,
succeed closely in term of rules and qualities and tend to have short-term relationship. Various
researchers have identified culturally clear clusters of nations where each cultural cluster mirrors
a shared religion, history, economic development, territorial proximity and other
factors(Agustriyana and Pringgabayu, 2019).
Both the countries in each groups share an emphasis on three or four cultural values
where language being one of the common ones which can be diverse on other values. Cultural
clusters ate considered to be useful starting points and moreover within each nation individuals
differ in the amount of which they can adopt the dominant culture accent of their country. In
context to china, it involves high context culture that favours to be collectivist with large
interpersonal relationships that have a social hierarchy where the message have instead profound
meanings whereas in context to USA, it involves a low-context culture that tend to be
individualistic with limited interaction among people and thus the communication is clear and
direct. The difference in culture affects a great deal of issues, cultural differences, business
values, attitudes and even ethical issues. Due to globalization, international marketing should be
well aware of the cultural differences in order to make strategic decisions and leaving aside the
criterion of self-reflection(Bernstein, 2020).
In order for the UBER company to start its operations in the china market, it is very
important for them to understand the chinese culture and various differences in culture that
affects the behaviour and personality of people. Because of globalization, the international
marketing should be well aware of the cultural differences in order to make strategic decisions.
The United states Anglo involves Anglo Cluster which is the highest-scoring nation on
individualism. The Anglo Charge profile involves a lofty personalised goal orientation, where
rewards are as said by merit and individual-achievement purposes holds the priority more than
collective bonds and family. In context to China, the Confucian Asia cluster is defined as a
strong historical influence of Confucian Ideology. This type of cultural worth profile describes
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