Gagandeep Kaur: Global Business Environment Management Report

This report, prepared by Gagandeep Kaur for Federation University, analyzes the global business environment and its impact on organizations. It begins with an introduction to the global market and the importance of understanding both internal and external environments, utilizing the PESTEL model for external factor identification. The report identifies challenges faced in international management, including political, economic, cultural, and legal factors, and emphasizes the need for strategic approaches such as Porter's generic strategies (cost leadership, differentiation, and focus). A case study of Qantas highlights specific challenges and opportunities within the airline industry, including competition and strategic decisions. The report discusses opportunities in the international market, such as increased customer reach and market expansion, along with the importance of effective decision-making in areas like brand investment, service improvement, and market penetration. The report concludes by emphasizing the need for proper management in the global market to overcome challenges and achieve financial success.

Running Head: GLOBAL BUSINESS ENVIRONMENT MANAGEMENT
Global Business Environment Management
Name of the Student: Gagandeep Kaur
Name of the University: Federation University
Student Id-30376604

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Introduction
According to Ehret, Kashyap and Wirtz (2013), global business environment said to be the
global market exists in countries all around the world. The global environment is different from that
of the home country. The environment to some extend influence the organization in the decision
making process in respect to use of resources and capabilities. The two different environment,
which is present in the market, are internal along with external environment. The PESTEL model
help the organization to identify external environment along with the external factors that are
responsible. This will automatically help the business organization to operate their business
globally as well as can earn profit from the business (Cavusgil & Knight, 2015). The business firm
need to possess the knowledge about the international business market and should segregate the
market accordingly. This will automatically help the business to expand in the market. Proper
planning need to done before trying to expand the market globally. This is possible if the
organization is able to recognize the business environment, which prevails in the market globally.
The social environment, which prevails in a country, should give importance by the organization
before expanding their business in the global market. The culture along with the local language
should know by the organization to run their business efficiently and effectively (Amankwah-
Amoah, 2016).
Challenges faced
The challenges in respect to the environment, which is being suffer by the organization, in
respect to the international management are political, economic, culture as well as legal. The legal
and political challenges, which the company face, are economic community along with stability in
government, global trade as well as incentives. The factors need to be address by the company
effectively and efficiently before entering the international market (Lewis et al., 2017). Individual
beliefs, values, symbols, language and culture along with symbols need to be taken care, as they are
the cultural factors.

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The toughest challenges faced by the organization is the knowledge and dealing capabilities
of the cultural factor, which prevails in the environment. The company also keep in mind the
political as well as legal aspect, which is present in the environment along with the economic
condition (Lasserre, 2017). To manage such factors high skill is required to perform well in the
international market.
The strategies, which is adopt by the company, should be able to help the company growth
process in the market. Porter’s generic strategy will help them to grow and sustain in the market.
Cost leadership strategy enables the company to identify the sources where cost can be reduce by
them in the long run. This will make the company more cost efficient in the market globally
(Dyllick, 2015).
The differentiation strategy will help the company to become unique in nature in the market
so that they can compete with their competitors. The customer will be attract more towards the
company if their product is innovative as well as unique in nature than the other competitive
organization. This will enable the organization to earn huge sum of profit along with that the
company will be able to enter the market and sustain at the same time. Lastly, focus strategy should
be adopt in the process by the company. With the help of this, the company is able to segment the
individuals as well as group whom they want to target in the market, which will automatically
narrow down the competition in the market and help the company to sustain and grow in the market
(Wood, Logsdon, Lewellyn & Davenport, 2015).
Qantas suffered immensely in the past few years, as there are big airline competitors in the
market of the Middle East namely Etihad and Emirates who use their location in the advantage of
their company. The two competitors are providing one stop as well as direct airline service to
different location, which help them to compete in the market. Along with the competitors, the local
airlines are also the ones who are constantly providing competition to the company. Qantas are
traditionally into airlines service, which make them provide better services than the other

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competitive brand. This make the company much more attractive especially to the Australians. Still
the company is unable to make any profit, as the prices are comparatively high compare to the other
brands. This make the company to fall into a dispute, which came into existence in the year 2010.
The company faced a decrease in the labour size. In the same year, the face a natural disaster, in
that situation they were unable to conduct the transportation. This cost them a huge amount of
money in the same year.
Opportunities
International market uplifts the organization to earn profit from all over the globe by
expanding their business as well as branch. The number of customers are so large in number that in
the international market the organization or the company can reach to them quite easily and
conveniently. The company will automatically sale their product or service to vast customers,
which will help them to earn huge sum of money (Anthony et al., 2015).
The existence of the brand can be enhance with the help of this opportunity. The customers
will come to know more about the brand. The product or service potential can tested by the
organization, which will automatically help them to understand whether the product or service is
going to do well in the market or not (DeCenzo, Robbins & Verhulst, 2016). The strength and
weakness can be identify with the help of this opportunity. This will enable the company to develop
their product and services in such a way that all the weakness are eliminate by the organization.
The organization is able to grab large number of customers if the organization look after the
money the customers are investing and value them. If the company give value to the customer’s
money by providing quality product or service, the customers with the help of word of mouth to do
the promotion of the company. The organization need to adopt different promotional activities as
well to promote their brand in the market so that customers are aware of the brand. Proper
penetrating strategies need to be adopt by the company so that the company can penetrate the

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barrier and enter the market, which will automatically help them to earn hug sum of money (Castka
& Corbett, 2015).
The company can earn other benefits in the international market. The money earned by the
company is earn internationally which provides a chance to increase the GDP of the country.
Therefore, there lies a chance where an individual as well as government will be empower with the
help of the resources and capital that is being earn extra during the process. Due to the unsaturation
of the market, there is chance of expansion in the market. The cost of the labour is quite less
compare to the other market structure (Epstein, 2018). Due to the vastness of the market in
international market so the cost of natural resources which is use to run the business is low compare
to the home market.
As there is constant development in the technology in the international market so, the
company can use different technologies to attract the customers to earn huge sum of money. The
cost in the structural development is comparatively less in this type of market (Zhong, Newman,
Huang & Lan, 2016).
The company can locate the opportunities that are there in the market for the Qantas in the
airline service industry to generate revenue and become popular among the customers. The
company being in an airline industry can introduce both economy and business class flights. The
number of customers are increasing gradually so there is a lot of scope for the company to earn
more from the market globally. The frequency can also increase by the airline company to generate
revenue. By the end of the year 2015 the price of the fuel have decrease drastically which create an
opportunity for the company to earn huge sum of money. The number of flights should be increase
to earn more from the market.
Decision making
The company can earn huge amount of profit from the international market. If the
organization wants to earn huge amount of profit and to do a successful business, the company

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need to take certain decision, which is helpful for the organization to grow in the market (Lee &
Lee, 2015). There are few critical decisions, which the company need to take in order to earn huge
amount of profit from the market, and they are as follows:
For the betterment of the product as well as service, the company need to invest in the
brand. The acquisition of new customers and the retention of the old as well as the new ones can
only done, if the organization is investing in the brand for the improving the quality of the product
or service (Artinger, Petersen, Gigerenzer & Weibler, 2015). As Qantas is there in the airline
industry, so the company need to invest more in the service as well as in the infrastructure, so that
they can provide quality service to the customers. This will help the company to attract new
customers and retain them in the future.
There should be improved service, which should be provide to the customers. The quality
service will satisfy the customers to go for the same company or brand repeatedly. This will
improve the image of the company within the customers and help them to grow in the market
(Stadtler, 2015). In case of Qantas, the improvement of the quality should be improve by the
company to attract the customers. This will automatically make the customers happy with the
services provide by the company. The introduction of frequent flights and the change in the price
will also improve the customer base of the company.
The communication plan, which taken by the company, should be properly and effectively
structured in such a way that the customers are aware of the company’s services that they are
providing to the customers. The more the customers are aware of the new services the more they
will get attracted to the brand (Bals, Kirchoff & Foerstl, 2016). Qantas took effective way of
communication to make the customers aware of the fact that they are providing quality services, as
they are into the airline industry so service is important for the company to provide to the
customers. This will ultimately help the company to increase the customer base of the company and
help to earn huge amount of profit in the end.

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The organization should structure a plan in such a way that they can penetrate the new
market to grow in the international market. The organization should not remain constant in one
sector or else the company will not be able to grow in the future (Holling, 2017). Qantas has done
quite well by entering into the airlines, as it is the fastest growing sector. This will help the
company to grow in the market and to earn huge amount of profit. The company can earn huge sum
of money through other ways and through other sector. Therefore, the company need to penetrate
the market so that they can obtain customers. This will automatically help the company form a
huge customer base so that they can earn money in the end. Thus, it is important for the company to
capture new market so that they can earn huge profit.
Conclusion
It is conclude in the end that in the global market proper management is important in the
global business market. This will help the organization to grow in the market and earn huge sum of
money. There are challenges, which the company will come across; they need to acknowledge them
in such a way so that they can overcome in the near future. There are ample amount of
opportunities in the global market for the company to sustain, develop and earn profit from there.
To achieve the target the opportunities should be utilize in an effective way. If the organization as
well as the employee achieve the target, then they get motivated to work even more hard. Lastly,
the brand need to take proper and effective decision so that they get recognition in the market and
can earn huge sum of money as profit. This will help the organization to form a customer base and
huge market share from the market. Therefore, it is important for the company to structure correctly
and properly the organizational structure so that they can do well in the market and can earn profit
in the end.

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