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Global Business Environment PDF
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Added on 2020-10-05
Global Business Environment PDF
Added on 2020-10-05
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Global BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................2TASK 1............................................................................................................................................3P1 Key factors which drive Globalization..............................................................................3M1 Critically analyses the impact that key factors have upon the global business environmentin terms of benefits and challenges........................................................................................5D1 Critically evaluation of global business environment, including the opportunities andchallenges faced by organization............................................................................................5TASK 2............................................................................................................................................5P2 Strategic Complexities associated with operating in a global environment......................5M2 Critically analyse strategic challenges in context of risk and diversification strategies andthe supply chain flow .............................................................................................................7TASK 3............................................................................................................................................7P3 Influences of globalization on organizational governance and leadership, structure, cultureand functions. .......................................................................................................................7P4 Influence of ethical and sustainable globalization on organizational structure ...............9M3 Analyse how stakeholder engagement and contribution can support positive employmentrelationship within an organisation......................................................................................10TASK 4..........................................................................................................................................10P5 Various ways through which decision making can work effectively in global context..10P6 Various routes to internationalisation an organisation may adopt, including key barriers11M4 Evaluation of key barriers in doing business internationally and recommendations toovercome it...........................................................................................................................13D2 Critique strategies that can be adopted by organisations operating in a global businessenvironment..........................................................................................................................13CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14.........................................................................................................................................................1
INTRODUCTIONGlobalization is a culture in which a country becomes less powerful when compared toother countries. It is a method of communicating with different countries and people to set up abusiness on an international scale. There are basically three types of globalization which arepolitical, social and economical globalization. Global market refers to doing business acrossboundaries in which a company takes a commercial advantage which includes global operationaldifferences, opportunities and similarities so that they can meet targets and objectives of globalmarket place. This report is based on meeting local needs is an important factor for performanceof a business in Siemens'. It is a global electrical and electronics business whose turnover is £53billion. Company is headquartered in Munich, Germany and its products are power generationtechnology, industrial and buildings automation, medical and many more. From Munich,executives oversee work carried out in name of Siemens across different countries. Thisassignment analyzed key factors of globalization and strategic complexities associated withoperating in global environment (Apăvăloaie, 2014). Influence of globalization and influencesof global market on an organization's structure, functions and culture is been discussed. TASK 1P1 Key factors which drive GlobalizationGlobalization refers to change in domestic activity according to geographical boundariesacross different countries and away from its own country. It is also defined as non dependence ofeconomies by medium of exchange of goods, services technology and capital across thecountries. This can also be termed as integration which can be observed by multinationalcompanies when they do their business expansion into different new regions. There are basicallyfour main elements which drive globalization which are cost, market, environment andcompetition. These are external drivers that impact crucial conditions for capacity ofglobalization within different countries and these do not have a control by firms (Axelrod andVanDeveer, 2014). Cost: Recently, as there is penetration in new markets and human capitals with help ofadvantage of cost drivers, a firm can have competitive advantage by providing economies ofscale through importing and outsourcing at higher quantities and determining importance of lowcost production. In context with globalization, increasing their capital will be helpful for many
international companies. Through this it has been analyzed that Siemens' is not capable enoughto provide other subsidiaries countries with economies of scale so its aim is to gain mileage frominvestment cost. Along with this advertisement and promotion should be done across countriesso that people can have knowledge and can learn about products and services available.Opportunities of cost will result in tough decisions related to markets, concentrating on productpositioning, customer segments and proper strategies to be followed while doing internationalbusiness. Siemens' provides products which are similar to their competitors but comparatively ata lower price which lead in investing in economies of scale and having control over costs thatincludes overheads, research and development and logistics (Belás and et. al., 2014 ).Market: Drivers in market which affect globalization involves factors like similarcustomer needs and transferable marketing where stepping up of global markets for brandedproducts has helped corporations to supply demands in new market place with its currentproducts. Nowadays customers are aware about basic topics such as education, lifestyles,income, aspirations and utilization of their precious time. Siemens' analyses customers indifferent countries who are willing to spend high and have a developed infrastructure. They donot provide products all over the world but they decide areas where can spend resource and doexpansion of their business. Company does regional grouping by selecting different regions andthen countries within them. Information from markets are helpful in conditions where anorganization is combining markets related to current structures and frameworks (Belás and et. al.,2015). Environment: Drivers in business environment that affect globalization involvesimitation of pollutants and wastage that is harmful for environment. With an increase in wealthand mobility information is rapidly transferring across different countries which eventually leadsto promotion of importance of globalization and revolutions of technologies that will increasedemand for products and services of an organization. The new bureaucracy allow companieswhich are born globally to easily enter and conquer in new market place and manufacture newproducts or change their strategies as per the requirements of a condition or situation. Siemens'should produce and manufacture electrical appliances which is Eco friendly and should makeproducts that can be recycled. They are making products which has less fuel consumption anddo not pollute environment (Carneiro and Brenes, 2014).
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