Global Business Strategy Reports Assesment

GLOBAL BUSINESS
STRATEGY

Global business strategy 1
Contents
Introduction............................................................................................................... 2
The ways the company responds to changes in the socio-economic and political landscape.............2
Positive and negative effects of Amazon on economic development.........................................2
Global strategies adopted by Amazon to extend the long-term success.......................................3
The role of global value chain analysis in strengthening its competitive advantage........................4
Benefits from Global Partner Network..............................................................................6
Ways to formulate business strategies in response to the challenges of internationalization.............7
Role of international organizations in ensuring smooth international trade amidst the devastation of
COVID-19................................................................................................................ 8
Conclusion.............................................................................................................. 10
References.............................................................................................................. 11

Global business strategy 2
Introduction
It has become a major concern for the managers to decide on a global business strategy as a
trade-off between global incorporation and local receptiveness. The global incorporation is all
about a degree to which an organization is capable of using the same products and methods in
other nations. The local responsiveness is the degree to which an organization should modify
their products and approaches to encounter conditions in other nations. These two dimensions
result in global business strategies. This strategy can be described as business strategies
affianced by the administrations functioning in an international business atmosphere and
serving customers worldwide. The short-term goals behind the global strategy are to enhance
routine operations of the organization whereas long term goals are to ensure growth and
firmness of the organization and supremacy over the world. This report comprises the global
business strategy of Amazon.
The ways the company responds to changes in the socio-economic and political landscape
Amazon has disrupted the way people shop. Amazon is benefitted from the political stability
of the nations. It assists the company in making expansion and diversifying business in the
developed nations. For instance, Amazon has been able to expand its physical stores in the
U.S to complement its e-commerce business. The low unemployment is convoyed by wage
growth and it fuels inflation as businesses pass on the costs to the customers. Amazon has
interrupted traditional retail and its overhead costs are also suggestively lesser than other
retailers. It provides Amazon an edge to weaken rivals on the prices and function on a lesser
profit margin (Contractor, et al. 2019).
Amazon has conducted lobbying practices to deal with the negative implications of the
political factor. The company is increasing its lobbying budget in the US for almost 2 decades
now. The progressing incorporation of internet and internet-linked products and services into
several aspects of the lives of people has provoked advent of the cyber-crimes in various
forms. But the company is struggling with cyber crimes by several measures. These measures
differ from nation to nation (Ives, Jarvenpaa and Mason, 1993). Amazon is having security
measures that take place at every step taken by the users while using a website or application.

Global business strategy 3
Positive and negative effects of Amazon on economic development
The positive effects of Amazon on economic development have been realized from the points
stated below:
 Amazon is having positive effects on United States Jobs at the local and national
level. The company is having more than offset potential cannibalization of brick and
mortar retail employment.
 Amazon has made evolution and disruption in the retail market. It has made changes
in the way people shop online and physical stores because of the increasing e-
commerce (Guo, et al. 2019).
 Amazon has various fulfillment centers that have created various jobs. The company
is also a catalyst for robust job growth. For instance, Amazon has added jobs in the
transportation, utilities and warehousing sector (Johnson, 2016).
 Amazon’s maturation offers an enhanced buying experience, customer cost savings
unknown level of convenience. It has positively influenced the economic growth of
the employees of the company (Dicken, 2007).
The negative effects of the company have been observed in the form of:
It has been found that Amazon has demolished more jobs than it has formed. There are
quite less opportunities for employment, lower wages, and uneven employment because
of the dependence on temporary workers.
Amazon is recently marked with the ‘stranglehold’ on the U.S. economy. As evidence
from the annual report company of Amazon and its corporate website, it has been painted
as a dreadful portrait due to its influence on the economy (Forsgren, 2017).
Amazon has been able to disrupt traditional retail through lessening overhead costs and
passing savings to the customers which have ultimately lessen the profit margins of the
competitor companies. The decrease in the profit of competitors has resulted in
decreasing employee wages. It has been viewed that current unemployment rates are still
low in the last decade (Adaji and Vassileva, 2017).
Global strategies adopted by Amazon to extend the long-term success
Amazon initiated its business as an online bookseller with the ambitions to rule the universe.
With the expansion in its core footprints, the company is growing in the different segments.
The company believes in developing its strategies on the things which do not change.