Global Business Environment: Key Factors and Challenges

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1 ...................................................................................................................................1
Critically analyse the impact of key factors on the global business environment......................1
ACTIVITY 2....................................................................................................................................2
Determination of various key strategic challenges associated with operating in a global
environment.................................................................................................................................2
ACTIVITY 3....................................................................................................................................3
Critically evaluate the global market influences by using appropriate theories.........................3
Activity 4.........................................................................................................................................1
Influence of globalisation by analysing key barriers in doing business internationally............1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Business environment is a sum total of all internal as well as external factors that affect
the overall functioning and growth of an organisation. It is a factor that affects both performance
as well as long term sustainability of a firm. Globalisation on the other hand is a quite vast
concept which infuses a changing trend where all business concerns expand their business
operations on a global level and also serve needs of their customers (Black, Morrison and
Gregersen, 2013). Almost all companies are using this medium for their overall growth and
development. In present context, globalisation is studied for Siemens AG which is a global
multinational business entity. It has its headquarters in Munich, Germany with a total turnover of
£53 billion. It basically specialises in electricals and electronics business and operates in around
190 different nations. This report focusses on various factors of globalisation such as cost,
market, environmental factors etc. Also the challenges faced by company while expansion
process have been stated here. Lastly, a critical evaluation of barriers that affect business
operations at international borders have been mentioned.
ACTIVITY 1
Critically analyse the impact of key factors on the global business environment.
Business expansion on a global level is a major factor that affects growth and profitability
of a business entity. Globalisation has a number of positive impacts on businesses but they have
to face a number of issues and challenges in their initial phase in order to be successful. It
context of Siemens AG, it is the duty of manager to identify impact of various key factors and
accordingly formulate strategies and policies for achievement of goals and objectives within a
specified time frame. Various factors that affect due to globalisation have been stated as under:
Cost Factor: Cost is a monetary factor and plays a quite important role in business
expansion on a global level. In the present scenario, as business of Siemens AG is expanding
globally large amount of monetary funds are needed for investment purposes as well as
production process (Cavusgil and et. al., 2014). This sometimes happens to be a major challenge
for companies as it is not possible that a company may have exact amount of funds as required
for fulfilling each and every requirement. Benefits or advantages of cost factor are that it will
help Siemens AG in enhancing their productivity as well as profitability and also redeem their
brand image in competitive market.
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