International Business Environment: Analysis and Impact

International
Business
Environment

Table of Contents
Introduction:.....................................................................................................................................1
TASK1:............................................................................................................................................1
P1: evaluate the business techniques used to analyse the international business environment :
................................................................................................................................................1
P2: Assess the impact of globalisation and international trade on national economies.......2
M1: An exploration of the organisation structure of the business operating in global and
international markets..............................................................................................................3
D1: An evaluation of the risks involved in operating in the international environment......4
TASK 2:...........................................................................................................................................4
P3: analyses the micro-macro environment of international business organisation..............4
P4: Assess the benefits, opportunities and challenges of globalisation and international trade
of the organisation..................................................................................................................6
M2 An assessment of the extent to which working in international environment impacts on
the success of individual business organisation.....................................................................7
TASK 3:...........................................................................................................................................7
P5: Analyses the implications for the businesses of the cultural and regulatory diversity in
international markets..............................................................................................................8
P6: Importance’s of the corporate social responsibility and sustainability in supporting
business success:....................................................................................................................9
M3: Evaluate the potential conflict between the corporate strategy and ethical social and
sustainable responsibilities...................................................................................................10
D2: Compare and contract management approaches to sustainability in business origination.
..............................................................................................................................................10
Conclusion:....................................................................................................................................11
References:.....................................................................................................................................12

Introduction:
The international business environment is associated with different business movement
which are performed beyond the national borders. The international business is refers as a
organisation that purchase and sales the goods and services across the two or more national and
international boundaries. In the another words it can be stated that international business
environment is a commercial activities at the global markets . it includes the movement of good,
capital, employees and technology , importing and exporting activities , cross-borders
transactions in the intellectual property like patents, trademarks and copyright through the
licensing franchising and management contracts. The international business is a deal done by the
organisation at global levels to accomplish the objective by the way of export, import and foreign
direct investment. Under this report, the Tesco is a retail organisational operates its business
activities at the international levels and gain the profits margin by dealing groceries and general
merchandise items in all over the world. further there will be discussion on the impact of
globalisation and international trade on economic and affects of micro-macro environment on
the international business (Alcácer, Cantwell, and Piscitell0 2015)
TASK1:
P1: Evaluate the business techniques used to analyse the international business environment :
There are various different tools and techniques which helps in analysing the international
business environment and how these models helps in performing the activities in the most
effective and productivity manners . There are change in the economic policies of the different
countries which affects the business and liberalisation of international trade and capital which
helps in expanding the operational activities.
There are different ways some of them are PEST and PESTEL analysis, SWOT analysis,
Porter’s five forces model and Global competitiveness index which helps in understanding the
business at the international levels. In the context of Tesco, organisation uses different tools to
understand the international business so that they can expand their operational activities.
Porter’s five forces model: this tool uses five forces which helps in determining the
profitability of the business and shape the performances of the firm competitive strategy. It is a
framework which classifies and analysis the important forces that affects the intensity of
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competition in the international levels and its profitability levels in the business. These fives
forces are:
Thread of new entrants: this forces helps in determine whether it is easy or not to enter in
the particular industry and global market. If the industry is profitable there are few barriers to
enter which increase the rivalry in market place. The chance of recent entrants is low for the
reason that agencies have to make investments extensive economic assets to establish their
presence within the retail marketplace. A high level of market saturation is any other factor that
forestalls organizations from coming into this market section. The threat of new entrants is high
when:
 Low amount of capital is needed.
 Existing organisation can do little to hit back.
 There is less government regulation.
Bargaining power of suppliers: here strong bargaining power permits the seller of
goods to sell the product at high price and low quality to its customer. The bargaining power
of suppliers is as an alternative low in view that Tesco substances meals and non-meals
objects from extra than 1,000 providers all around the globe. Thus, Tesco can effortlessly
negotiate product costs, whilst choosing handiest those components that offer products of the
very best pleasant.
Bargaining power of customer: under this condition buyer demand low prices for the
goods and services with good quality of product when power is strong in market. The
bargaining electricity of customers is likewise noticeably excessive as the switching expenses
inside the retail industry are low. Hence, customers can without difficulty switch to every
other retailer if they are now not glad with Tesco’s product variety, customer support, or
pricing coverage. Nonetheless, Tesco serves more than eighty million customers on a weekly
foundation. This reality barely reduces customers’ bargaining energy.
Threats of substitutes: here the buyers find substitute product for the goods and services
from another completive company. The danger of substitution inside the retail enterprise is
medium. On the one hand, the fundamental substitutes of massive retail chains are small
convenience shops and organic stores that don't pose any severe hazard to Tesco’s monetary
sustainability. In addition, because of the economies of scale effect, Tesco can provide the
identical items at an inexpensive rate, making them extra attractive to clients. On the opposite
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hand, customers should purchase non-food product from different famous retailers inclusive
of Zara, H&M, or Gap.
Rivalry- The UK retail marketplace may be very aggressive on account that there are
various enterprise that operate on this phase. The main opponents compete over merchandise,
charges, and promotions, making the extent in their similarity quite excessive.
Tesco faces the extreme competition of his direct competition, inclusive of Asda,
Sainsbury’s, Waitrose and Morrison, who compete between yes at the price, products and
promotions of intermittent shape. Therefore, it's miles important to emphasise that Asda is one of
the main competition in this phase with an boom of quota of market of 16,6 % to 16,eight %
throughout the financial year 2010 / 09, whereas Sainsbury’s has validated an growth of 16,1 %
from 15,8 % and Morrisons to 11,6 % of 11,3 % across the equal duration (PESTEL and five
forces analysis of Tesco. 2021). The gradual increase of the marketplace means essentially that
those quotas of whenever essential marketplace of the opposition there was intensified the
competition of the marketplace, that's threatening the placement of leadership on the market of
Tesco. • In the rural zones, wherein the most nearby grocery store can be a positive distance, a
few primary purchasers are attracted with the aid of the retailers like Somerfield and Co-op.
Shops of tough bargain as Aldi and Lidl have taken ownership of the marketplace in instances of
recession. During 2008 there registered a growth of the promoting of greater than 25% . Global
competitiveness index also helps in analysing the international business environment by
evaluating the international standards and norms and evaluating the political and economic
stability of the respective country government and trade policy also affects the international
business to higher extends in the market (Buckley,, Doh, . and Benischke, 2017).
P2: Assess the impact of globalisation and international trade on national economies.
Globalization is refers to a process which is based on the international strategies aims to
expand the business operational on the international levels and was spontaneous by the
facilitation of the global communication due to use of advance technology , better socio-
economic factors, environmental developments. The globalization helps in achieving the
organisation in the most effective manners as good and services are easily transferable among the
different countries from time to time. The international trade refers to the process where
exchange of goods and services are carried out between the different countries to expand their
business at global levels. Here products are exchange from one country to another country as it
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helps in expanding the business at the international levels. With the references of the Tesco
company, this company servers different countries and tries to expand and grow their business
at international medium
The goal of globalization and international trades helps in the organisation to get the
superior competitive position in the different countries with low operating cost to gain larger
number of consumers which helps in increasing the national economic of various countries as it
provide a way to enhance the gross domestic product (GDP), Industrialization in different nation,
improving the Human development index (HDI). The international trade allows the countries to
expand their markets for good which lead to greater competition in the nation with competitive
prices which brings cheaper product and services home to the customer. .the globalisation and
international trades helps in allowing countries to be wealthy at the national economic as it use
labour, capital and technology in the most effective and productivity manners. There is free
trade and protectionism trade among the countries as free trade helps in trading freely at the
global scale with the effective demand and supply in the nation. Protectionism holds some
regulation of international trades which helps in proper working to the markets at national and
international levels and it can be in the form of tariffs, subsidies and quotas. (Faruquie, 2015)
M1: An exploration of the organisation structure of the business operating in global and
international markets.
Every international business organisation has its own organisation structure which helps in
effective operational activities. Some of them are discussed here,
Initial division structures: this type of structures is common in subsidiaries firms which
provide consultants and financial firms. Export firms involve the technologically product and
manufacturing unit. And on-site manufactures uses this structures to cut down the cost.
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