Global Business Environment

This document analyzes the key factors of cost, market, environment, and competition that drive global commerce and trade. It also critically analyzes the impact of these factors on the global business environment in terms of benefits and challenges. The document further explains the complexity of strategic challenges faced by Tommy Hilfiger when operating in a global environment, supported by specific examples. It also critically analyzes strategic challenges in the context of risk and diversification strategies and the supply chain flow.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1. Analyse key factors of cost, market, environment and competition that drive global
commerce and trade................................................................................................................3
Covered in Poster...............................................................................................................3
M1. Critically analyse the impact that key factors have upon the global business environment
in terms of benefits and challenges........................................................................................3
Covered in Poster...............................................................................................................3
PART 2............................................................................................................................................3
P2. Explain the complexity of strategic challenges faced by Tommy Hilfiger when operating
in a global environment supported by specific examples.......................................................3
M2. Critically analyse strategic challenges in context of risk and diversification strategies and
the supply chain flow..............................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Global business environment is being considered as state of affair, where companies
majorly performs operations across borders. Organisations while operating business it is required
to consider both internal along with the external factors that might impact in both negative and
positive manner. Along with this, firms that are being chosen in present context, Tommy Hilfiger
and Tommy Hilfiger that are looking forward to expand their business at global level.
P1. Analyse key factors of cost, market, environment and competition that drive global
commerce and trade
Covered in Poster
M1. Critically analyse the impact that key factors have upon the global business environment in
terms of benefits and challenges.
Covered in Poster
PART 2
P2. Explain the complexity of strategic challenges faced by Tommy Hilfiger when operating in a
global environment supported by specific examples.
If it is talked about Tommy Hilfiger, company goes through a range of complexities in
context of strategic business environment (Black, Morrison and Gregersen, 2013). This means,
while performing business at international level Tommy Hilfiger has gone through various issues
in regards to supply chain management and so on. Some of complexity of strategic challenges
faced by Tommy Hilfiger are given underneath:
Complexities within the international supply chain management :
Supplier Complexity is said to be one of the crucial element which impacts negatively
upon a company like Tommy Hilfiger while developing and maintaining strategies to overcome
the complex and often serious issues associated with local sourcing. On the other hand,
technology turnover along with the company mergers are the two things that could help Tommy
Hilfiger in improving the overall benefits for the business company.
Impact of international trade law :
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It is being analysed that, not all the countries carries same law and does trading in the
same manner, a business country is doing. It means that, as supply chains expand into more
varied global customer markets, substantial variations in existing supply chain processes must
occur. Rapid changing international trade law might impact heavily upon Tommy Hilfiger's
profit and productive margins. This could be understood with a good example, where inflation
rate of a particular country got increased, that means Tommy Hilfiger would also require to make
alterations within its policies and so on (Cavusgil and et. al., 2014).
Economics of globalisation :
It is being found that, the requirements for sustainable action schemes are undergoing
fundamental alteration as a consequence of the quickly increasing complexity of world's
economy (Laudon and Laudon, 2015). This could be understood with a good example, where
government of a country changed economic policy-making approach, which changed the whole
scenario of working capacity of a business organisation like Tommy Hilfiger.
With the help of above mentioned information, it can easily be said that challenges that
pose for risks for Tommy Hilfiger could be anything from business supply chain management,
rapid changes within the laws and so on.
M2. Critically analyse strategic challenges in context of risk and diversification strategies and the
supply chain flow
If it is critically analysed then, then it can easily be said that there are ample number of
strategic challenges in context with both risks and diversification strategies along with the supply
chain flow like natural disasters, politics, electronic attacks, and economical conditions like
recession could directly make the business company like Tommy Hilfiger much more reliable
towards suppliers (Ferraro and Briody, 2013). With the help of this, it can easily be said that
organisation’s needs could easily be fulfilled right on time. Along with this, without a robust
supply chain an organisation could effectively look into all the disruptions, that might impact
upon overall services offered by the business company to its customers.
On the other hand, supply chain diversification basically, mitigates all the risks that are
present within the business environment, and these basically keep themselves in making sure that
Tommy Hilfiger is having a diverse supplier base or not (Kasemsap, 2014). With the help of this,
maximum benefits could easily be gained by Tommy Hilfiger in regards to supply chain.
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CONCLUSION
With the help of above mentioned report, it can be concluded that company would
require to keep its focus upon strategic strategies made by them, because it could directly help
organisation in reaching to new heights in specified time frame.
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REFERENCES
Books and Journals
Black, J. S., Morrison, A. J. and Gregersen, H. B., 2013. Global explorers: The next generation
of leaders. Routledge.
Cavusgil, S. T. and et. al., 2014. International business. Pearson Australia.
Ferraro, G. P. and Briody, E. K., 2013. The cultural dimension of global business. Upper Saddle
River: Pearson.
Kasemsap, K., 2014. The role of social networking in global business environments. Impact of
emerging digital technologies on leadership in global business. pp.183-201.
Laudon, K. C. and Laudon, J. P., 2015. Management Information Systems: Managing the Digital
Firm Plus MyMISLab with Pearson eText--Access Card Package. Prentice Hall Press.
Lee, S. M., Olson, D. L. and Trimi, S., 2012. Co-innovation: convergenomics, collaboration, and
co-creation for organizational values. Management Decision. 50(5). pp.817-831.
Ramamurti, R., 2012. What is really different about emerging market multinationals?. Global
Strategy Journal. 2(1). pp.41-47.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Simic, V. and Dimitrijevic, B., 2012. Production planning for vehicle recycling factories in the
EU legislative and global business environments. Resources, Conservation and
Recycling. 60. pp.78-88.
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