Global Business Management

Explore the factors affecting country competitiveness, Porter's Five Force analysis, World Trade Organisation statistics, and the impact of Covid-19 on the global economy in this study material on Global Business Management. Get access to solved assignments, essays, dissertations, and more on Desklib.

Global Business Management
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Table of Contents
TASK 1............................................................................................................................................2
Factors country competitiveness..................................................................................................2
TASK 2............................................................................................................................................5
Porter’s Five force analysis.........................................................................................................5
TASK 3............................................................................................................................................6
World trade organisation statistics...............................................................................................6
TASK 4............................................................................................................................................8
Covid 19 and Global Economy....................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Global business management is define as the process in which individuals come to know
about various aspect related to managing the business at global level (Ladegaard, 2011). It is a
way of managing the business operations at global level with effective use of resources in order
to become successful in the global business. The organisation chosen for this topic is TESCO.
The company was founded by Jack Cohen in year 1919 in London with the motive to provide
convenience to public in groceries and general merchandise. The topics covered in the report are
competitiveness factors of the countries, porter's five forces analysis, world trade organisation
statistics and situation faced due to Covid 19 and global economy.
TASK 1
Factors country competitiveness
There are various factors which are efficiency enhancers which determines the country
competitiveness (Peng, 2016). In context of UK the competitive factors are explain below-
 Higher education and training- With the advancement in technology the need at
workplace is increasing and becoming complex due to which the demand for higher
education and training has increased. The education and training policies and practices
changes on the bases of activities of the economic, political, social, culture and
technological in the country. The training of safety and health professionals differs from
country to country on the bases of needs of the working population along with the
available resources and the structure of the country. High education and training helps in
understanding the changing environment in order to satisfy the needs and desires of
people and they are able to adjust with the changes.
 Goods market efficiency- Market efficiency is define is the process where market price
play important role that is reflects the relevant information. Market efficiency is the
ability which helps in providing the maximum opportunities to the marketers to sale their
products with the motive to increase its profits and to reduce the transaction costs. In
context of UK stock market it is one of the most efficient market as it is heated topic of
debate in concern to academics and practitioners. In market efficient the past prices are
not useful in determining the future price but is required and relevant in determining
current prices.
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 Labour market efficiency- The efficient labour market refers to the market which consist
of employees which match the workmen according to their skills and capabilities.
Moreover with work they able to enhance their efficiency where as it motivate them and
provide them various incentives and rights. The skilled and efficient labours are very
important asset for the economy as they support in developing the economy of the
country. In context of UK, the labour force there is most efficient in terms of productivity
and use of latest technology based machines which helps them in attaining their goals as
well as goals of organisation.
 Financial market development- It is one of the important factor which helps in enhancing
the economy of the country. The motor drives the economy, being where overflow
units meet deficiency units and arrange differing types of budgetary understanding.
The target of monetary market improvement is, thusly, to upgrade the capacity of the
cash related market to act productively as a middle person (Cuervo‐Cazurra, 2011). A
productive money related market is unified with appropriate profundity and
expansiveness, that's on the gracefully side, there's a good scope of monetary
instruments, offering selections of backers, credit hazards, then on to satisfy all
classes of resource interest. On the interest side, there must be sizable venture
interest from different sorts of speculators, with various danger bring hungers back.
Likewise, an honest variety among guarantors and speculators for the foremost part
achieves an honest blend of market sees, prompting a functioning trade of budgetary
resources (Kowalkowski, Kindström and Brehmer, 2011). A profoundly fluid
budgetary market intrinsically can oblige enormous and shifted issuance of
cash related instruments with least value impact. Here, budgetary instruments are
often immediately traded at sensible expense. Effective clearing and settlement
framework may be a key supporting element that helps lower exchange cost.
 Technological readiness and market size- Technology readiness refers to the
understanding of people regarding technology and how they can use it in order to get
better results. Basically the technology readiness is base on various factors which are
innovation, optimisation, insecurity and discomfort. During the foremost recent decade,
technological advances including portable trade, online media,
and telephone innovation have affected virtually every shopper's life. In spite of
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expanded dissemination of those advances, advertising research actually
focuses thereon clients' utilization of innovation isn't a given. Recently, researchers
have progressively considered the a part of client qualities in clarifying innovation
use which provides advertisers bits of data into which clients are well on the thanks
to utilize explicit advances. One quality variable that has gotten huge consideration
in late examination is innovation preparation. In any case, since the dimensionality
of TR and its impact on innovation use is so far not satisfactory within the writing, a
meta-examination is required .Fourth, since the TR record has been applied in
several settings to clarify innovation use, we evaluate the impacts of relevant
arbitrators. We centre especially around significant mediators that supervisors can
control. The market size of UK is quite big that it is one of the fifth largest economy
on this globe where business unities has wide scope and opportunities to establish
their business and make them successful.
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Illustration 1: Global competitive report 2019

TASK 2
Porter’s Five force analysis
The motive behind conducting the Porter’s five force analysis is to provide the information
related to the marketplace so that company can better understand its industry and can take
corrective actions accordingly (Aronczyk, 2013). Tesco is the market leader in UK and this
analysis help them in better understanding of marketplace.
 Bargaining power of the buyer- Tesco is providing wide range of products and services to
its customers with the motive to satisfy their needs and desires. From the research it has
been evaluated that the bargaining power of the buyers is low in UK as population is not
organised and easy shift to any other brand or substitute. In content of grocery the
bargaining power of customers is high, hence Tesco has set its price low which has
benefited them as they able to gain amount of profits (Chand and Tung, 2014).
 Bargaining power of suppliers- In context of Tesco, they are operating at large scale with
wide range of products and services and mainly focusing on UK marketplace. The
company is quite old has more than 2200 suppliers where they negotiates hard with its
supplier sin order to earn high profits as they are already providing products at very low
price in comparison to its competitors.
 Threat of new entrants- The company has very low threat from new entrants that is
company is quite old and able to satisfy its customers with its range of products. The
customers will prefer Tesco over any other substitute as they able to gain the trust of
customers by providing quality products at affordable prices. Tesco doesn't have to stress
over any new participants as it appreciates economies of scale and has its own centre
capabilities. In like manner, would-be contenders might not have enough cash,
admittance to conveyance organizations, and skill to investigate the store business in the
UK by the same token.
 Threat from substitute products or services- The company has very less threat from
substitute products and services as they offer a large variety of products to its customers
and sell majority of substitute products under its brand name.
 Rivalry amongst existing competitors- The company is facing high competition in
marketplace due to which they have to formulate various strategies in order to maintain
its position in marketplace. The best strategy of company is to provide products at
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possible low cost in comparison to its competitors which has helps them in attracting
large number of customers (Fitzsimmons, Miska and Stahl, 2011).
TASK 3
World trade organisation statistics
World trade organisation is established in year 1995 as international institute that is responsible
to look at the oversees activities that is trade activities among nations (Scarborough, 2016). The
commodity item take for decision the trade activities is food. The international trade has changed
over the past due to following reasons-
 With the improvement in the domestic and international transportation the things have
changed that is earlier ships, hourses, carriage , etc are been used as the transportation
mediums. With the advancement in the technology and betterment the introduction of
railways, buses, transportation through air and many such factors have taken place.
 Advancement in the communication process that is earlier with the help of letters
communication take place but now with emails, video conferencing, telephones the
effective communication take place. Moreover the improvement in the logistics and
supply chain technology has helped in bring the changes in the old methods of trading in
order to make the process fast and effective.
The factors which has affected the trade are future data, changing taste of customers, buying at
open, the political disability and many more (Voegtlin, Patzer and Scherer, 2012). An individual
may be anxious to purchase or sell stock "at the open" at a great value, prospects information
will give the individual a superior thought of whether that will really be conceivable. Record
prospects cover the significant market lists. They begin exchanging before the securities
exchange and are a generally excellent pointer of what the financial exchange opening will
resemble. A great deal of purchasing and selling normally happens inside the main hour of the
exchanging day. The initial hour of exchanging is essentially the first occasion when that most
market members need to enter or leave the stock, which can undoubtedly create higher-than-
normal exchanging volume. The social media and blogs too has effect on trade activities. The
web has changed the manner in which individuals contribute, just as the way the general
population everywhere gets news; thusly, if a web author or columnist spreads a bullish or
bearish article about an organization all through the exchanging day, this can hugy affect its
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stock. All financial specialists should attempt to scrutinize the web and visit significant news
entrances for the duration of the day, to check whether there are any conceivably market-moving
reports in the public area.
Importing activities and the exporting activities have effect on the international trade practices
(Milhauser and Rahschulte, 2010). Importing and Exporting are methods for Foreign Trade.
Unfamiliar exchange is completed in products and enterprises – which incorporates imports,
sends out, and the equilibrium of unfamiliar exchange – is introduced independently for
merchandise and for administrations. The absolute imports, fares, and equilibrium of unfamiliar
exchange are introduced as outlines of products and enterprises.Sending out alludes to the selling
of products and ventures from the nation of origin to an outside country. While, bringing in
alludes to the acquisition of unfamiliar items and bringing them into one's nation of origin.
Moreover they are important as Exporting and importing develops public economies and extends
the worldwide market (Henry and et.al., 2015). Each nation is blessed with specific focal points
in assets and aptitudes. For instance, a few nations are wealthy in normal assets, for example,
petroleum products, wood, fruitful soil or valuable metals and minerals, while different nations
have deficiencies of a large number of these assets. Furthermore, a few nations have
exceptionally evolved frameworks, instructive frameworks and capital business sectors that grant
them to participate in complex assembling and mechanical developments, while numerous
nations don't.Imports are significant for organizations and individual buyers (Keegan, 2017).
Nations like Ellen's frequently need to import products that are either not promptly accessible
locally or are accessible less expensive abroad. Singular purchasers additionally advantage from
the privately created items with imported segments just as different items that are brought into
the nation. Regularly, imported items give a superior cost or more decisions to shoppers, which
helps increment their way of life.
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Illustration 2: World Trade Statistical Review, 2017
TASK 4
Covid 19 and Global Economy
In the midst of the Covid pandemic, a few nations over the world turned to lockdowns to
"smooth the bend" of the disease (Jankalová, 2012). These lockdowns implied keeping a large
number of residents to their homes, closing down organizations and stopping practically all
financial movement. As indicated by the International Monetary Fund (IMF), the worldwide
economy is relied upon to shrivel by more than 3 percent in 2020.Due to the fall in movement,
worldwide mechanical action has been influenced. Oil costs fell further in March as the
transportation segment, which represents 60% of the oil interest, was hit because of a few nations
forcing lockdowns. IMF ventures a diminishing in food costs by 2.6 percent in 2020, brought
about by gracefully chain disturbances, outskirt delays, food security worries in locales
influenced by Covid-19 and fare limitations.
In the lockdown time frame, while the cost of oats, oranges, fish and arabica espresso has
expanded, costs of tea, meat, fleece and cotton have declined. Further, the decrease in oil costs
has squeezed the costs for palm oil, soy oil, sugar and corn. A serious level of vulnerability
encompasses this estimate, with both potential gain and drawback dangers to the standpoint. On
the potential gain, better news on immunizations and medicines, and extra strategy backing can
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prompt a faster resumption of financial movement. On the drawback, further floods of
contaminations can invert expanded portability and spending, and quickly fix monetary
conditions, setting off obligation trouble. International and exchange strains could harm delicate
worldwide connections when exchange is extended to implode by around 12 percent (Potgieter
and Coetzee, 2013). The flare-up of pandemic Covid-19 everywhere on the world has upset the
political, social, monetary, strict and budgetary structures of the entire world. Bigger monetary
issues are related with the current and expected future interest for oil converting into changes in
oil costs because of diminished financial exercises driven by the COVID-19 pandemic (Lasserre,
2017). Expected overabundance gracefully was additionally liable for critical value decreases. In
the event that lower than anticipated oil costs proceed, many oil-subordinate economies may
contract following decreases in exchange and speculation. Stuns to the work markets will be
serious, particularly for nations reliant on movement.
Illustration 3: COVID-19 and international trade: Issues and actions. 2020
CONCLUSION
From the above study it has been concluded that high education and proper training play
important role in carrying the operations of business as quick and effective results are been
drive by the company. Moreover employees require less time in knowing and learning new
facts as in business environment changes take place uncertainly. The use of Porter’s five
force model help the business unites in understanding the prevailing trends in marketplace
so that they would be able to take correct steps and formulate the business strategies in order
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to deal with them. It helps in identifying the strategy of competitors, buying behaviour of
customers, the entry of new business in the same industry and many more factors. The
international trade activities play important role in developing the economy of the country.
With the advancement in the technology and high living standards of people the changes in
trade activities have drive effective results. Moreover Covid 19 has adversely effect the
business operations and the economy at globe level where even develop countries has faced
many difficulties related to finance and has bring negative impact on the overall economy at
global level.
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REFERENCES
Books & Journals
Ladegaard, H.J., 2011. ‘Doing power’at work: Responding to male and female management
styles in a global business corporation. Journal of Pragmatics. 43(1). pp.4-19.
Peng, M.W., 2016. Global business. Cengage learning.
Cuervo‐Cazurra, A., 2011. Global strategy and global business environment: The direct and
indirect influences of the home country on a firm's global strategy. Global Strategy
Journal. 1(3‐4). pp.382-386.
Kowalkowski, C., Kindström, D. and Brehmer, P.O., 2011. Managing industrial service offerings
in global business markets. The Journal of Business and Industrial Marketing. 26(3).
pp.181-192.
Aronczyk, M., 2013. Branding the nation: The global business of national identity. Oxford
University Press.
Chand, M. and Tung, R.L., 2014. The aging of the world's population and its effects on global
business. Academy of Management Perspectives. 28(4). pp.409-429.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Fitzsimmons, S.R., Miska, C. and Stahl, G.K., 2011. Multicultural employees: Global business’
untapped resource.
Voegtlin, C., Patzer, M. and Scherer, A.G., 2012. Responsible leadership in global business: A
new approach to leadership and its multi-level outcomes. Journal of Business
Ethics. 105(1). pp.1-16.
Milhauser, K.L. and Rahschulte, T., 2010. Meeting the needs of global companies through
improved international business curriculum. Journal of Teaching in International
Business. 21(2). pp.78-100.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Jankalová, M., 2012. Business Excellence evaluation as the reaction on changes in global
business environment. Procedia-social and behavioral sciences, 62, pp.1056-1060.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Potgieter, I. and Coetzee, M., 2013. Employability attributes and personality preferences of
postgraduate business management students. SA Journal of Industrial Psychology. 39(1).
pp.01-10.
Henry, C. and et.al., 2015. Entrepreneurial leadership and gender: Exploring theory and practice
in global contexts. Journal of Small Business Management. 53(3). pp.581-586.
Online
Global Competitiveness report. 2019.[online.availablethrough:<
https://www.weforum.org/reports/how-to-end-a-decade-of-lost-productivity-growth>]
World Trade Statistical Review. 2017.[online.availablethrough<
https://www.wto.org/english/res_e/statis_e/wts2017_e/wts17_toc_e.htm>]
COVID-19 and international trade: Issues and actions. 2020.
[online.availablethrough<http://www.oecd.org/coronavirus/policy-responses/covid-19-and-
international-trade-issues-and-actions-494da2fa/>]
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