This document discusses global business strategy and its impact on economic development. It focuses on the strategies adopted by Amazon for long-term success and how the company responds to changes in socio-economic and political landscape. It also explores the positive and negative effects of Amazon on economic development.
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Global Business Strategy Table of Contents INTRODUCTION.......................................................................................................................................3 TASK 1.......................................................................................................................................................4 How does the company respond to the changes in socio-economic and political landscape? Justify you answer with examples..............................................................................................................................4 Elaborate on the positive and negative effects of Amazon on economic development............................5 TASK 2.......................................................................................................................................................6 What global strategies have the company adopted to extend the long- term success of the company......6
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How does a global value chain analysis of the company strengthen its competitive advantage?.............7 Does the company reap any benefits from Global Partner Network and how sustainable are they?........8 TASK 3.......................................................................................................................................................9 Howdoesthecompanyformulatetheirbusinessstrategiesinresponsetothechallengesof internationalization?................................................................................................................................9 Willan impending Brexitaffectthe company you chose in terms ofOperations and Overall profitability? What is the role of international organizations in ensuring smooth international trade?. .10 CONCLUSION.........................................................................................................................................10 REFERENCES..........................................................................................................................................13
INTRODUCTION Global business strategy refers to the organisational actions or activities taken while to complete and expand in the global market. Strategy of global business related to pursue business products and services into international market by building plans for targeting growth beyond national borders in order to remain competitive in marketplace. Respective strategies related with the developing strategies to meet the organisational short term as well as longterm goals to effectively achieving objects (Cline, 2019). It is very potential for organization to get difference in national business development strategy in the competitive world by accessing requirements of consumers to remain competitive. For an organization it is very much important for an organization to access important knowledge and information to respond in positive manner in regards of socio economic and political landscape for gaining desirable outcomes. it has been analyzethatinsurroundingsmanykindsof changesoccursthatdirectlyimpactonthe organisational works and activities. While an organization operates in business environment they directly contributes in the economic development in both the positive and negative manner. in that regards analysis of aspects plays very important role in building strategies and tactics to remain competitive in the market place.To gain sustainability and gain higher level of profitability an organization required to enlarge their boundaries by using expansion strategies in potential manner. Value in product and services plays very muchimportant role, by using it organization can be able to influence the purchasing decisions of consumers. To pass the values to end users organization adopts the strong value chain in which products and services transport ina systematic chain (Nuruzzaman, Gaur and Sambharya,2019). To provide one of best products and services organization need to formulate organisational strategies and tactics by analyzing major challenges such assuperior competitor, economy downturns and many more. Respective report is based on the Amazon which is an American multinational technology organization focus on e commerce, cloud computing, digital streaming and usage of AI. Respective report is based on the major strategies adopted by organization while they aimed to expand in the international marketplace. To build strategies it is essential to respond changes in socio economic and political landscape. Further it elaborates the positive and negative effects in organisationaleconomicdevelopmentandvaluechainanalysisforgainingcompetitive
advantage. Finally it includes the benefits of global partner network and way of formulation of strategies in challenge of internationalization. TASK 1 How does the company respond to the changes in socio-economic and political landscape? Justify you answer with examples. Change in the global climate is one of the most critical challenge in front of an organization while the aimed to expand at global market place (Contractor and et.al., 2019). It is responsibility of marketers to accumulate necessary knowledge and information regarding changes occurs in external business environment and respond in positive manner by framing strategies andtactics in potential manner. there are various kinds of changes takes place in external business environment such as social, economic and political by using PESTEL analysis of specified region provide important information to put one of best efforts. There are no. of factors that pressurize an organization to operate at global level that is increase in global level competition. In context of Amazon theyoperate at world wide level and in that regards need to understand the changes in economic environment in potential manner. the another factor is social changes that helps to organization to bring changes in their existing products and services. in context of Amazon they analyze that people are more techno oriented and wants to standardized their life. In that series they deal from online mode and access to artificial intelligence. To remain always competitive organization put one of their best efforts in conductingresearchanddevelopmentandadaptationoftechnologicaladvancetoolsand techniques. Due to liberalization and globalization in the marketplace all companies can be able to trade in all over the world that not only helps to serve large no. of consumers but also helps in gaining higher level of profitability (Cuervo‐Cazurra, Mudambi and Pedersen, 2019). To prosper business at international landscape Amazon all favor to build networking with other international organization to remain competitive in business environment. In 2017 It has been reported by Federal Trade commission that they approved the merger in between Amazon and Whole foods market that helps to access the large no. of consumers and gain higher level of profitability positively. In economic changes consist of advent of Brexit that impact the business activities of all businesses in adverse manner. in that aspect to overcome from the aspect respective
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organization always remain focused on the maintaining employer brand. They never raise price of their products and maintain adequate availability of their products that helps in fighting from adverse situation potentially.The very important example of social changes in the consumer purchasing behaviorand actionstaken by respective organization torespond in positive manner. while Amazon grow in the 90s largely give thanks to emerging and growing print book market and their dominance in online sales. In the 2004 first Kindle e reader began by Amazon and then released various iterations of Kindle. Respective product now dominated by e reader market by edging out competing products from Barnes & Noble, Kobo and many more. Elaborate on the positive and negative effects of Amazon on economic development. Economic development refers to the growth in living standard of people of a nation from the low income economy to higher income one (Cusumano, Gawer and Yoffie, 2019. While the quality of life improve that known as economic development that is very much potential for organizations as their profitability relies on it. Economic development directly affect the business of an organization in both positive and negative manner that are as follows: Positive effect: Economic development proved very beneficial for each and every class such as for government, communities, organization as well as individual as they get higher level of profitability and opportunities in positive manner (Fritscher and Pigneur, 2020. In context of Amazon from the economic development they reap number of benefits such as job creation that contribute in their accomplishing organisational goals as well as contributes in economy in potential manner. presently they employed 798000 employees from almost all over the world. In that regards they can be able to get talented personnel that directly contributes in achieving objectives (Gawin and Marcinkowski, 2019. The another important advantage of economic development consist of industry diversification by lessen down the region’s vulnerability towards a single industry. It not only contributes in providing no. of opportunities but also providessustainabilityin the wider marketplace.The exampleof economicdevelopment positively on UK is ongoing evolution and disruption on retail market, in context of both
physical and online that resulted increased e commerce that helps to enhance market base. The potential kind of manifestation of Amazon effect that is ongoing consumer shift to shop online. In context of Amazon they diversified their field in many sphere such as they deals in ecommerce, artificial intelligence, virtual reality and many more. In that regards they can be able to gain the large market share and sustainability of market in positive manner. Negative effect: It has been analyze that there are no. of adverse impact of economic development on the organization and also for individuals (Lavery, S., 2019. It has been analyze that economic developmentisresponsibleforpollutionanddestructionofenvironmentthatenhance responsibility of organization to invest more in CSR activities that takes so much time and costly matter. It creates health challenge that negatively spread the publicity of people that create pressure on organization that impact on their level of profitability and sustainability. Due to polluting rivers, vegetation and many more activities that directly influence the consumer decision making, in that regards it is very much essential for respective organization need to invest more money on attracting consumers towards purchasing their products and services. it has been analyze that due to development of economy it enhance the inequality in the income in which richer become more richer and poor become more poor (Sako and Zylberberg, 2019). Respective disparity in economy influence the purchasing power of consumers and not able to purchase organisational products and services. in that regards it is very much potential for an organization to build strategies and tactics in order to balance the economy by own work and activitiesin order to remain competitive in marketplace. In context of Amazon to protect the environment focus on sustainable packaging of products and new fleet of electric delivery of vehicles helps to build distinctive image in marketplace.The adverse impact of Amazon on economic development consist of in 2015 Amazon become the first organization that abandon the structure that allowed to divert their sales and profits away from the UK market.It means respective organization booking their sales through UK as profits are taxed.
TASK 2 What global strategies have the company adopted to extend the long- term success of the company. Expansion at global level plays very much important role for an organization as it proved beneficial in enlarge business opportunities by expanding existing products into new places. In context of Amazon they adopted all the four strategies of Porter’s Generic strategies one of them is market development (Tirdasari, Indrawan and Fahmi, 2019). Respective strategy is directly related with the exploration of ne markets by using existing products and services in order to remain competitive in the market place. Respective organization primarily started with the US, Currently it has country specific sites in 13 countries that includes Canada,UK,china and India. In addition to they also using Prime free same day and Prime free one day services that are available in more than the 8000 countries and towns. Amazon’s prime now services is available in more than the 100 cities in approximately in 9 nations. To enlarge business opportunities respective organization build or create various kinds of strategies and tactics in order to reach at desirable goals and objectives that are as follows: Prime as the hub of wheel:In their product Amazon prime was first consider as an incremental improvement in values of their products and services in form of free shipping. While launching the Amazon prime he claimed that prime occupy the 100 million subscribers to making the one of most successful loyalty program of time (Amoako and Dartey-Baah, 2020). By magnifying its usage of prime proved as a barrier to entry for other companies.In that regards they by adding unique propositionin theirproductsand servicesinorder to remaincompetitivein the marketplace. The another important segment of their strategy includes the home delivery of products and strong supply chain logistics that helps to deliver one of best products and services to the end user in effective manner. by putting pressure on their competitors by exceeding expectations of their consumers to be delivered products within the 48 hours. E commerce providers by creating strong network for satisfying coast to coast demand of their consumers in potential manner.
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How does a global value chain analysis of the company strengthen its competitive advantage? Supply chain plays very much important role for an organization as it assist to reach at large no. of consumer base by optimize their needs and wants in potential manner. in context of Amazon retailers learn from them in regards of supply chain strategy, since the organization aimed to launch their own delivery network known as a la Fedex and UPS. In their supply chain network for reaching at large no. of consumers consist of sell on Amazon marketplace possess varied fulfillment options such as Amazon sort, package and ship products from their fulfillment centers. In context of Amazon by made shift in the way communicate inventory demand to their vendors by adding some sort of adding new features such as probability level demand forecast. In that regards vendors make forces to bring some sort of critical decisions that largely impact on their stock levels of Amazon (Ancarani, Di Mauro and Mascali, 2019).There are no. of components of Amazon distribution strategy that includes warehousing, delivery, technology and manufacturing that complete the whole supply chain in order to gain the desirable outcomes. Does the company reap any benefits from Global Partner Network and how sustainable are they? Global partner network is one of most important aspect that helps to enlarge business opportunities and gain sustainability into the market place. Respective factor enables to reach at large no. of nations to serve the consumers in positive manner. The AWS partner network (APN ) is one of global partner program for build technological advancement and consulting business for leveraging Amazon Web services to serve consumers in one of best possible manner. Respective tool proved beneficial for organisations to create, market and sell offerings by giving one of best products and services, technical and marketing assistance. Respective tool is provide assistance to run business in the most environment friendly manner that helps to build distinctive imagein mind of consumer and directly contribute to gain sustainability in business environment.In addition to environmental benefits directly associated with the smoothly running applications in cloud for achieving the 100% renewable energy consumption at global infrastructure (Paul and Rosado-Serrano, 2019). The Amazon web service business development
team of individuals is the form of leaders and consumers that collaboratively working for individualsandbusinessestomovetheircomputinginfrastructureandvariouskindsof applications in the AWS cloud. Respective global network provides the broad range ofglobal compute, storing capacity , database, analytics of information, their application in the wider market by deploying services. by using respective platform organization can be able to move in faster,inlowcostandenlargebusinessoperationsthatdirectlycontributesingaining sustainability in potential manner. Amazon help to leading organisations such as Pinterest, discover by developing the strategic cloud solutions to deal with growth in short period of time in potential manner. at last it can be said that AWS partners and alliances is one of most fast growing and strategic part of business that contribute directly in gaining desirable outcomes TASK 3 How does the company formulate their business strategies in response to the challenges of internationalization? For an organization it is very much important to enlarge business opportunities in the wider marketplace by analyzing environment and situations may occur (Humbeeck, 2019). In context of Amazon which is one of leading organization in sector of e commerce and deals with large no. of consumers. To remain always competitive in the marketplace respective organization formulate business expansion strategies by evaluating major challenges. . in context of Amazon they are very much caring and passionate for their consumers to serve them in one of best manner. As per the Amazon CEO Jeff Bezos their consumers are very much loyal for them until the anybody offer the better services to them. while internationalize their productsthey by redefining the consumers taste and preferencesshould overcome from the challenge. By redefining they can be able to match organisational products as per the consumer choice and preferences in potential manner. by setting goals and objectives that is very important for retailers that guides their retailers to reach at large no. of consumers in potential manner. the goals are obsession towards consumers rather than the competitors focus , bring innovation on regular basis, commitment towards the operational excellence in order to provide one of best experience to the end users. the last attribute that is long term planning and thinking that helps to
grasp the emerging needs and wants of consumers to build loyalty in their mind in potential manner (Humbeeck, 2019). in their both online and offline stores they only focus on the selection, pricing and convenience to the end users so that they can take appropriate kind of purchasing decisions. To eliminate the challenges while operate at global level organization structured the through research and development that assist in providing detailed information regarding facts and figures to remain competitive in the business environment. By framing objectives that elaborated in front of retailers for gaining important kind of insights and insights fortheminordertoimprovepotentially.Afterbuildingbusinessobjectivesandgoals organization they by using various kinds of tools analyze the business environment and factors that directly influence on their business performance in adverse manner (WILLMOTT, 2019). respective factors directly contributes in modifying their strategies and tactics in order to gain the desirable outcomes. in that series they pay attention on recruiting one of best candidates by opting best selection process by which can gain potential outcomes from their teammembers. Retailers by choosing the test and learn approach that helps to improve the customer experience that not only contributes to learn from the consumers but also able to position in better manner within the retail environment. To eliminate concern of budget or staff resources they test the campaign at small scale to lessen down the negative impact. Will an impending Brexit affect the company you chose in terms of Operations and Overall profitability? What is the role of international organizations in ensuring smooth international trade? Brexit is the UK’s decision to leave the European union bring challenges in front of Amazon to emulate as it bring changes in the British tariffs and custom regimes, FX rates and policies of immigration, effect economic development and disposable income of consumers (Kartajaya, Kotler and Hooi, 2019). In that series it lead more complex the organisational supply chain management and complexities in negotiation is very uncertain in today environment. In between the hard and soft exit in environment the trading position of UK in respect of UK and for rest of world take varied form. After observing all radical changes majorly in the supply chain they started the remediation strategy to lessen down its adverse impact.Sourcing and procurement of Amazon firstly impacted due to Brexit and face scarcity of both skilled and non skilled workforce. As varied kind of changes take place in labour laws and immigration occurs high level of labour cost and that impact directly on their level of profitability.
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CONCLUSION From the above report it has been concluded that global expansion plays very much important role for an organization as well as individuals as it provides new opportunities to explore. While operate at global level it is very important to build strategies and tactics by considering various aspects such as internal business environment, external environment and many more. To supply products and services to the enduser required the strong supply chain network to reap important kinds of outcomes. To become successful it is very essential to access the challenges in path of progress and build strategies to overcome from them so that potential outcomes should be achieved. To coordinate business activities at international market it is necessary to access the economic downturns such as Brexit in UK marketplace as it impact on each and every aspect of organization. It has been evaluated that organization need to analyze the both positive and negative impact of economic downturns on their business to build strategies in order to take appropriate kind of decisions that proved beneficial for each and every individual in potential manner. While an organization expand their business activities in international market encounter various kinds of challenges, in that regards it is very much potential to analyze the changesthatoccurswhileexpandbusinessactivities.Togaindesirableoutcomesfrom employees it is very much potential for an organization to provide adequate knowledge and information to employees so that they can contribute one of their best efforts in organisational development and enhancement in potential manner. by scheduling training and development organization can gain desirable outcomes. It has been recommended that operations of Amazon expand continuously based on the business opportunities in business environment as well as by evaluating the organisational strengths. In regards of Amazon they commence into the e commerce sector that is very much wide in nature majorly in the high growth economies. It has been analyze that they need to diversify their business to expand the business against the industry specific risk in order to gain desirable outcomes. further they need to develop the new kind of partnership to expand their businessoperationsandreinforcetheirmultinationaloperationsinagainstthelevelof competition and strategic related challenges for gaining large market share in potential manner. It
has been analyze that organization have to commence their business in nations where presently they are not working for enlarge business opportunities in potential manner.
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