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Global Business Environment Case Study

Added on -2020-11-23

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INTRODUCTIONGlobal business environment refers to environment in different sovereign countries areexogenous to home environment of firm and impacting capabilities of decision making andresource use. This is classified in to internal and external environment. In this study, SiemensAG case study will be used. It is global electronics business that operate its business in Germany.In given report will mention regarding key factors of market, competition, cost which drive thetrade and global commerce (Black, Morrison and Gregersen, 2013). There will be discussionabout influence of globalisation on leadership, functions, organisational culture and governanace.Impact of the sustainable globalisation and ethical on the different organisation functions will bediscuss here in a detailed manner. TASK 1P1 Key factors of cost, market, environment and competition that drive global commerce andtradeGlobalisation is trend where people as well as countries become minimum influential incontext to cross national bodies. Global commerce is trade among the firms in various countriesor trade between countries. It is selling and purchasing of products among sovereign nations. Itpermit the countries to take competitive advantages in some areas while reducing thedisadvantages in the other areas. The global trade and commerce both developed more and alsoallowed the firms in less populated regions in order to compete against those which are based inthe more populated regions. Siemens is a multi-national firm and it operate its business in around190 separate nations. It is global leader in electrical engineering and electronics. The main aim ofthis firm is to meet needs of range of the global markets (Botha, Kourie and Snyman, 2014).Under this, some of the key factors mention below that drive the global commerce and trade:Cost- Under this, sourcing the efficiency as well as costs are different from one countryto another and international organisations can take the benefit. Enhancement in investment ismotivator for several global organisation. Under this, Siemens use cost cost to conduct thepromotional activities or advertisement at the large scale to aware people about availability ofproducts and services. The cost factor many be applicable less for services which are mainlybased on people and need to recreating element of service factors in many locations. In order to1
conducting the global trade, there will be involvement of more costs in activities such asproduction, labour cost, advertisement etc. Market- Customers in an advanced economies are more same in context to lifestyles,income, education etc. This factors consists needs of consumers, transferable marketing etc.where emergence of the international market for products has enable the forms to cater needs inthe new markets with existing goods (Burke, Trahant and Koonce, 2012). Under this, Siemensfirm search ready customers in the countries with more buying power as well as better developedinfrastructures. When Siemens conduct business at global level then there is a requirement todetermine preference and demands of consumers in a better manner. Environment- This is combination of the external and internal factors. The constraints ofenvironmental factors are large but external and out of control of an industrial enterprise and alsotheir agreements. This environment factors consider cultural, economic, legal and political whichdevelop the impact of on the global trade and commerce. It is necessary for the Siemenscompany to consider all these factors at the time of conducting business globalise. For an example- When globalise business, economic environment develop its directaffect on business. For this, it is necessary for company to conducting an investigation on globalcountries, firm should consider the investment rates, interest and inflation rate. Competition- It is a powerful force in several service industries. To extent that theconsumers which operate in all around the world to know value the international serviceprovision, company may be more obliged to follow its main competitors in new markets inaddition to protect position in the existing markets (Cavusgil and et. al., 2014). Under this,growing the trade among nations with Foreign Direct Investment has helps to enhanceinterdependence between firms and countries to aware the firms about new rivals. It is necessarythat firm should develop strategies deal with existing competitors in global commerce. TASK 2P2 Complexity of strategic challenges faced by organisations when operating in a globalenvironment supported by specific examples Managing the business in global environment is a main task for business. In this presenttime period, firms are more grappling with the constant change from rise of economicnationalism, increasing economic activity in the emerging markets, enchaining the regulations2

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