Global Business Sustainability: Moving from Manufacturing to Digital Transformation

This article discusses the concept of global business sustainability and the shift from manufacturing to digital transformation. It explores the role of internationalization, competitive advantage, and the impact of digitalization on manufacturing processes. The article also highlights the importance of SMEs in driving digitalization and the various frameworks and strategies involved in global business sustainability.

GLOBAL BUSINESS
SUSTAINABILITY

ABSTRACT
From the years ago, the customer prefer non green products as well as services. Now a
days the company focuses on offering environment friendly products to its customer in order to
satisfy them(Dyllick and Muff, 2016). Th e environment of company is dynamic in nature so that
it emphasised on offering superior quality products that imposes positive impact on behaviour of
customer. The main objective of Global business sustainability is to provide the opportunities
that effect positively on environment. Therefore, it provide healthy environment to its employees
that helps in increasing satisfaction level of its customer. It assists them to boost productivity as
well as profitability level in the business organisation(Rezaee, 2016.). There are different
theories given in this report such as Michael Porter, product life cycle and so on for explaining
the stages of product within business organisation. In addition to this, there are various strategies,
plan and procedures that are different from other rival firms in competitive marketplace(Galea,
2017). There are different approaches that assists business in doing work effectively to achieve
future success and growth of company. In assistance of this, it also described issues and
challenges faced by the business organisation. Along with this, it has been analysed the per
capita income as well as level of education for further growth and development of market.
Beside from this, political instability imposes negative impact on business activity and functions
in the marketplace(Chang, 2016). Due to environment changes the business organisation changes
its operations from simple manufacturing activities and function to digital technology for a
longer period of time. The main focus of every company is to provide quality products and
services to its customer in order to gain competitive advantage over rival firms. In addition to
this, the business changes its operation from simple to digital manufacturing technology. The
organisation adopt different approaches for accomplishing productivity as well as profitability
level(Rezaee, 2018). Due to implementation of advanced technology the organisation provides
unique as well as specific products and services to its user for satisfying them. They provides
products and services that do not harm to the environment which imposes negative impact on the
society(Ledgerwood, 2016). In present context, the taste and preferences of consumer is changes
so it is necessary for company to implement advanced technology for providing unique products
to its user. It also include several case studies such as new business model as well as reverse
cycle for gaining global environment sustainability within marketplace(Rezaee, 2017).

Table of Contents
INTRODUCTION...........................................................................................................................4
Main body .......................................................................................................................................4
Nation trade ...........................................................................................................................4
How it Enhance competitive advantage.................................................................................4
Internationalization.................................................................................................................5
Developing a sustainable competitive advantage and retaining it.........................................6
How to utilise ‘Digital’ on internationalise and internalisation process................................6
Business to business framework.............................................................................................7
Consumer to consumer framework........................................................................................7
Role of SMEs ........................................................................................................................8
Roles of internationalization..................................................................................................8
Digital frame and competitive advantage...............................................................................8
Global strategy and manufacturing process ..........................................................................9
Role of strategic thinking.......................................................................................................9
Cultural/knowledge factors....................................................................................................9
Infrastructure........................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global business sustainability is a relationship between social, environmental and
financial factors present in local atmosphere of business. This can also be defined as policy of
organisation for goring green or using green products. Green product are those which are
generated without harmer local environment or by helping outside environment to grow.
Sustainability can only be archived by an organisation if it use all these factor in combined form.
Global business sustainability is arise when firm use green products at global level. In this essay
we will include all the models and frameworks which will help firm from moving to digital firm
from manufacturing unit and analysis its impact on long term on business. Various frameworks
and theories will also analyse hear for effective use of firms resource and getting there target
fulfil.
Main body
In this essay the main focus is on tendency for organisation to move form simple manufacturing
to digital formation investment within long period of time. The question related to the cases of
slow growth and stop of function will also identified.
Nation trade
When two nation exchange good and services for mutual benefits that is called as
national trade . These trade are the main purpose of ensuring regular supply of products and
services in nation(Sambhanthan and Potdar, 2017). Now the question is arise that what is the
need of national trade or why the nation trade. This question have a good answer which is stated
below:
Why the nations trade ?
There are number of reasons why nation trade. This is because it helps them in matching
demands of its citizens. A nation unable produce all things which its citizen consume this
because scarcity of resources, so it have to use resources of other. These resources cant be used
directly so it import products. Some time nations trade for establishing sound relation with other
nation for mutual benefits and transfer of culture.
How it Enhance competitive advantage
This tendency of firm to move from manufacturing unit to operate in digital formation
investment will definitely lead it in competitive advantage this is because firm will get benefit og

cost reduction which will lead in increase number of customer as well profit of firm. cost of firm
will decrease because it will shift to digital formation which sell its product directly to its
customers and will get aid of elimination of mediators. And removal of mediators will decrease
cost of firm and act as competitive advantage to firm. There is also a advantage to firm that it
have good supply change management because of this tendency so firm have sound and
motivated distribution channel in firm.
Internationalization
It is the process of going beyond boundary of country for selling new designed product
which is made for sell outside permanent market where firm sale its products.
Internationalization is the process where firm what to its business operations to different nations
on international scale(Amankwah-Amoah, 2016). The needs of internationalization is arise
when firm has reached at the peak of its operation in domestic market and now it want to grow
more for earning more profit.
Methods of internationalization
There are various methods of internationalization which a firm can use for its growth in
global business some of them are stated below:
Licensing: In this method of internationalization of firm by use of licences . This is used when
there firm is dealing in restricted products or products need permission for selling in particular
nation. Firm needs licence from the government of that particular nation for funding its
operation.
Franchising: In this method firm use name of other brand by taking its franchise. Business use
the name of other brand without purchasing patent rights of franchisor. This is the most common
use type as it requires less cost and have great impact on firm cost as it require less capital
investment for growth of business in other market.
Acquisition: It is that type of methods in which large turnover firm small firms in different
nations. This method require huge capital investment because purchase of firm is costlier process
, but this method have also benefited as company can use brand name as well as patent of other
company and can get benefits of well established distribution channel of purchased firm.
Joint venture: Joint venture is popular method of internationalization of firm which work by
combining two or more firms for mutual benefits to operate in different countries. It includes

sharing of resources of both firms for joint operations. The benefit of this method is that firm can
analyse market condition where it want to work.
Exporting: This method includes internationalization through exporting the products of
organisation . This is good method of internationalization as firm can introduce its product to
new market without incurring plant cost and also aid firm in running its current business by
manufacturing products.
If firm an organisation want to expend its operations then it should choose right method
for its internationalization(Peattie, 2016). It depends upon firm size and tendency that which
method it choose but if firm have tendency to change its operation and want to be digitally
formation company than it have to choose exporting as method of internationalization this is
because firm have specialization in manufacturing of products so it will be benefited for firm to
get close to its objective of forming there company digitally strong.
Developing a sustainable competitive advantage and retaining it
There are different type of sustainable competitive advantages which can be used by firm
for its growth. The first step is to understand the market and its different segments and identify
the loose points of firm on which firm can get maximum benefits for its development. The next
step is to understand what customer want from organisation and how firm can fulfil their
requirement. This will aid firm in reading customer behaviour and attracting them towards
organisation products(Ershadi and Dehdazzi, 2019). The third step is to ensure that different
services provided by firm are unto date and firm have to make regular check on these things they
can help firm in getting more reach to customer. Identify strength of firm and using resources
adequately and properly lining up all theses resources for achievement of organisational goals.
Establish better structure in organisation for facilitating smooth flow of information and
establishing good communication.
How to utilise ‘Digital’ on internationalise and internalisation process
There are various ways which firm can use digital on there internalisation and
internationalization these are:
Changing determinants of competitive advantages: Digital have there main use in gaining
competitive advantage a sit aid firm in motivation itself because these goods get fit to the
requirement of customers and will satisfy them in large amount this will also help in maintain

regular customers as products become more attractive when they get digitalize so it will also
work as competitive advantage for firm. They also strengthen the value chain.
Reduced transaction costs: Digitalize product also aid firm in there internationalist as the
products become more standardize and there is good communication between internal and
external department of firm which reduce the chances of wastage of resource this also benefit in
improving customer services which will decrees costs just because of new software and
automation in working process.
Reduced asset and location specificity: It does not help business in in increasing its assets and
also decries wide location of business but this will not impact upon profitably of organisation
and will remain as competitive advantages for firm.
Outsourcing and offshoring: it is the main part of organisation where it can compensate for
their resource bound by outsourcing and offshoring parts of their value chain and can remain
gainful because they are allowed to standard up rapidly, while not being chained to capacities of
physical factories(Nickols, 2016).
Business to business framework
It is that framework where organisation sales its product to other business unites .it
consist of three types of persons manufacture , wholesaler and retailer . There may be more then
three party, but for classification only three parties will be used. This type of business transaction
flow with further sale of goods and services not for self consumption. The person who sale
product to ultimate consumer will become retailer in this chain. A change seeking organisation
should focus on this type of transaction as it will benefited them in digitalization of there product
as it aid them to reach there target of digitally transformed company by promoting their products
in market.
Consumer to consumer framework
In this framework there is transaction between consumer to consumer. This transaction
are done on the basis of goods and services which are not manufacture by the person itself or it
can said that it is the process of selling products which are pre manufacture and just sell because
of some small amount of money benefit, these is not common part of business transactions.

Role of SMEs
SME have important role in growth of manufacturing company in shifting towards
digitalization in there process. These roles are defined below:
Engaging customers: Digitalization helps SMEs in managing there customers . If small scale
firm chose the tendency of promoting its objectives through digital use than it will get maximum
benefit of it(Norzailan, Yusof and Othman, 2016). The organisation which keep changes it
operation will survive more and digitalization is back need of company.
Optimising processes: SMEs will also get befit of digitation in form of improvement in there
structure . This will also motivate there process and will bring optimising approaches in
organisation. Which will move towards achievement of organisational goals and objectives for
long run.
Transforming products and services: this have also a role in transforming organisation products
which will further benefits to organisation . This will improve the product design and improve its
quality which ultimately leads in formation of different image of firm and will access new
market for firm product it will also increase trend of firm in market where it can use digital
concept for changing there operation and perform for better outcome by surviving for long
period of time.
Roles of internationalization
Internationalization play many roles in transforming the organisation and helping it to get
the access to new market and adopting digitalization in its operation for changing its tendency
for manufacture to digitally. Internationalization works as a change agent in organisation which
help it in adopting new techniques and increasing of large scale operations of firm. These large
scale operation bring opportunities to change business function and adopting new ones which
help firm in getting work done and change the organisation with the help of effective methods.
Digital frame and competitive advantage
Digital frame have various competitive advantage which will beneficial for organisation
while they are working in organisation. Advantages are help firm in getting more profitability
and growth in business enterprise. If company have well managed digital framework it will aid it
in future when firm is planing to expend its operations internationally. It will also help firm in
getting new areas to explore and get new techniques to manufacture there product . Company
have tendency to explore new market but it have to maintain its capital requirement where digital

frame work can help it to explore global market with its implementation on working of
organisation.
Global strategy and manufacturing process
Global strategy are those which are used by business firms for expectation of there
operations to global platform . These strategies are set of rules and regulations which help firm in
getting excess to global market where it can sell its products.
Manufacturing process is that set of function which are used to produce product. There is
close relationship between global strategies and manufacturing process. Combination of both
will facilitate organization to use is function and responsibilities and will also aid in facilitating
firm a path to digitally transform itself form manufacturing to self owned firm.
Role of strategic thinking
Strategic thinking is that idea or way of thinking in which manager of firms think in a
strategic direction for achievement of organisational goals and objectives this will help the firm
in working with effectiveness for increasing work efficiency.
There are different roles which a strategic thinking have to perform in an organization.
Strategic thinker have main roles of providing vision, strategy and tactics for the organisation.
Vision is the primary role of it as it provide clear vision of firm objectives. strategy and tactics
are those two roles which provides clear guidelines to organisation that how they can achieve its
targets.
Cultural/knowledge factors
Cultural factors are those which includes thinking, ideologies, ways and behaviour of
different person present in external and internal environment of organisation. There is huge
impact of this on organization which is on the way to change its operations and work toward
bringing new cultural changes in firm.
Knowledge factors are those which are related to knowledge ability of firm or
organisation where it can understand the needs of its customer and can full fill them by studying
there behaviour. It have direct impact on firm as it will decide there ability to service. Firms
which are wanted to increase there operation scale must have to mange there knowledge.

Infrastructure
Infrastructure can be defined as combination of all resources, leaving and non leaving
things which help organisation in running operations while working for achievement of its goals
and objectives. Infrastructure is the main factor which help firm in development and profitability
. If firm is profitable in long run than firm have to mage good infrastructure. It will also solve
problem of rigidity in structure of organisation this will done by building good infrastructure in
organisation. It have also help in controlling cost and wastefulness expenditures as with better
infrastructure company can use its resources more effectively. This will also help firm in getting
excess to new market as solid functioning will help them in managing other function.
CONCLUSION
It can be concluded form above mention information that firm can use many operations
for its internationalization. There are number of methods which can use by firm. New methods
for innovation and managing their operations with the motive of growth and finding new
opportunities. There are various types of factor which can influence firm in getting competitive
advantage ., some time there may be slow growth of manufacturing units but they will transform
with the time passes on and can convert in fully self owned units . This will also increasing there
motivation which ultimately increase there profit ability and long run growth opportunities.

REFERENCES
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