Global Business Environment Contents
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Added on 2020-06-05
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Global Business Environment Contents INTRODUCTION 3 TASK 1 3 P1: Key elements of cost, market, environment and competition that drive global commerce and trade 3 TASK 2 5 P2: Complexness of strategic challenges faced by organisation while operating in global environment 5 TASK 3 5 P3: Cause of globalisation on organisational governance and leadership, structure, culture and functions 5 P4: Effects of ethical and sustainable globalisation on organisational functions 6 TASK 4 7 P5: Various ways through which decision making can work effectively
Global Business Environment Contents
Added on 2020-06-05
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Global Business Environment
ContentsINTRODUCTION.................................................................................................................................3TASK 1.................................................................................................................................................3P1: Key elements of cost, market, environment and competition that drive global commerce and trade...................................................................................................................................................3TASK 2.................................................................................................................................................5P2: Complexness of strategic challenges faced by organisation while operating in global environment.......................................................................................................................................5TASK 3.................................................................................................................................................5P3: Cause of globalisation on organisational governance and leadership, structure, culture and functions............................................................................................................................................5P4: Effects of ethical and sustainable globalisation on organisational functions...............................6TASK 4.................................................................................................................................................7P5: Various ways through which decision making can work effectively in global context................7P6: Assorted routed to internationalisation which can adopt by BMW, including key barriers.........8CONCLUSION.....................................................................................................................................9REFERENCES....................................................................................................................................10
INTRODUCTIONGlobal business environment refers to a situation in which various organisations operate its business functions in order to compete with their rivals and sustain in competitive market for longer period. Here, the management play an important role to determine all such factors which affects their sustainability as well as profitability, globalising a company meansexpanding business to different countries in order to capture large market share and attain strong brand image in competitive market. BMW, a multination company which deals in manufacturing automobile and motorcycles is taken for the purpose of preparing this report. The project covers the key factors that drive global commerce and trade. Along with this, complexity of strategic challenges has been also covered under this report. The project report also summarises the effects of globalisation on firm’s decision making process and different barriers which may affects company’s profitability (Acar, Kadipasaoglu and Schipperijn, 2010).TASK 1P1: Key elements of cost, market, environment and competition that drive global commerce and tradeGlobal environment is important to understand by the management of every organisation irrespective of the size whether small, medium or large which help them in expanding their business operation in different places. Such environment includes factors which affects company’s profitability and goodwill in market. In order to expand business operation in different countries, the management may find difficulties and challenges that may related with competitor’s legislations, taxes, lots of barriers etc. But it can be possible when the managers should consider all aspects related with cost, market, competition etc. through which they can achieve sustainability in market at international level. Thus, it is essentially required for the management of BMW to first analyse environment exist in different countries and accordingly make an effective decision regarding expansion of business operations (Banerjee,2010). Some aspects or elements which need to be considered are as follows:Competition: It is such a factor which brings challenges and problems towards an organisation while expanding business operations at international level. It may affect it profitability and productivity as well. Therefore, it is important for management of an organisation to carefully analyse the strategy, working style, technology etc. which are currently used by their competitors. It can help them in making an effective decisions and plans in order to compete with them in more effective and efficient manner. Through this, they can provide products and services to the customers and implements changes according to the needs and preferences of customers. BMW, German company which deals in manufacturing automobile and motorcycles thus it is important for them to make innovative changes in their products which adds extra value to products. At the moment, the company have analysed that South Africa is the better place where they can expand their business as South Africa. It can be also being identified that there are lots of automobile manufacturing companies who operate its business operation in South Africa more successfully.
Cost: To expand business to different countries, the management must require to identify all such elements through which they can reduce cost of products and services. This may help company in attracting and influencing the buying behaviour of customers. As BMW produces expensive automobiles products due to which they mainly targeted people having higher income which can afford to buy their products. It must require by management to provide the information about the value added features thy offered in their automobile products. Through this, they may attained loyal customers and achieve good brand image in market (Budhwar and Debrah, 2013).Market: While expanding business to different countries, the management may find difficulties in understanding the culture and environment in which they will operate in future.Thus, the management need to analyse such environment and culture critically and accordingly make plans and strategies which help them in executing business decision in more effective and efficient manner. There are huge amount of risk arises due to high completion, purchasing power of people etc. which may affects the chances of achieving growth and success of business in new areas. R&D team of BMW need to conduct research in order to find out which country will beneficial for company to expand. On the basis of collected information, the management need to make plans and strategies to build new production plant after understanding the customer’s purchasing power, competency etc.Environment: There is another important element which is required to consider by the management of firm in order to operate business more smoothly. Environment includes internal and external which affects business operation either in negative or positive way. Internal environment includes the elements present within an organisation such as employees,culture, funds etc. whereas external environment includes political, social, economical etc. which affects their decision of expanding business to different countries. For this, the management need to conduct SWOT and PESTLE analysis through which they properly evaluate such factors that made huge impact on business at international level (Carroll and Shabana, 2010).Therefore, it is essentially required for BMW to understand all above elements before thinking to open new manufacturing plant in new places such as South Africa. Through this, the company can able to achieve competitive advantages and attained strong brand image across worldwide. Thus, it can be achieve only when the company improved their products through implementing valuable changes. Therefore, the management of BMW should required to make an effective decisions and strategies related with alteration of products, identifying foreign cultures and tax systems etc. through which they can easily set up their new store in different countries. As BMW company offers expensive automobile vehicles dueto which it is important for management to move their business operation to such developed countries where the citizens has more purchasing power. They also need to plan a strategy to attract customers to show their interest in purchasing company’s products. Such strategies include marketing strategies through which the marketing manager can easily communicate with the people and tell them about the features and luxury services they provide with their products.
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