International business environment | assignment sample

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INTERNATIONALBUSINESS ENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3Task 1..............................................................................................................................................3various business techniques used to assess international business environment........................3Influence of globalization on national economies......................................................................5Organizational structures used by companies.............................................................................6Risks impacting international operations....................................................................................7Task 2...............................................................................................................................................7Micro and macro environment affecting international business.................................................7Positive & Negative Impacts of International Business.............................................................9Task 3.............................................................................................................................................10Importance of corporate social responsibility and sustainability in international business......10Conflicts between corporate strategy and social responsibility................................................10Difference between management approaches...........................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONBusiness environment is the mixture of varied factors which have a direct impact on theorganization and its operation. In short, business environment highlights the influence of variousexternal and internal aspects present in environment in which the business operates. TESCO is awell known retailer and groceries company headquartered in England, UK and established in1919.This report provides a brief about various business techniques used to assess internationalbusiness environment, Influence of globalization on national economies, Organizationalstructures used by companies, risks impacting international operations, micro and macroenvironment affecting international business, opportunities and threats of globalization, impactof international environment on business organization, significance of corporate socialresponsibility, conflict between corporate and sustainable responsibilities and comparison ofdifferent management approach towards sustainability.MAIN BODYTask 1various business techniques used to assess international business environmentPESTLE analysisPolitical factorsPolitical factors involves government policy, political stability of the country, labourlaws, foreign trade etc. These factors plays a dynamic role for the international businessenvironment which are involved in trading across the world. Because these businesses deals inwide range of countries, the stability of that country's government is highly essential for thecompany as an instability would lead them to become nationalized. Apart from this, theirproperty might be confiscated. For example Being an automobile company, The powerful impactof Brexit had affected lands rover in a great way which might led them to close their plants.Economic factorsThese factors encompasses Exchange rate, inflation rate, unemployment rate, interestrates etc. Considering the different interest rates, exchange rate becomes an important factor forthe organizations who are planning to expand their business on international platform. Forexample a country having high interest rates would definitely affect the spending of consumerson luxury goods which would turn out to be a nightmare for companies. Land rover when
decided to to extend its chain through Pashley cycles in US in 2005, that time US was sufferingfrom fiscal deficit as well as low employment rate due to which the company suffered hugelooses over its cycles.Social factorsPopulation rate, consumer attitude, lifestyle, health consciousness attributes comes underthe social factors. Beliefs and values of people guides the organization the means of doing thebusiness and hence these factors plays a remarkable role for the organizations to understand themindset and demands of the customers housed in different countries. For example TESCO,keeping in mind the issue of obesity, introduced nearly 350 fat free dairy products containing 0%fat and 8% sugar to aids their customers in leading healthier life(Luthra, 2016).Technological factorsWith the rapid emergence of globalization, technology has become disrupting factor formost of the industries. Over few years, importance of technology has revolved around theoperations of most of the companies therefore factors such as degree of innovation, automation,research and development must be considered by the organizations while expanding or openingnew business. After facing the downfall in technological advancement, TESCO made a hugeinvestment in R & D and launched RFID technology in order to enhance the experience of instore for their customers(Phadermrod, 2019).Legal factorsLegal factors includes discrimination laws, employment laws, consumer protection laws.The legal framework of a country stimulates the success or failure of the organization. A firmbefore entering into n new market must carefully assess the legal environment of particularcountry as this will impact its survival in the same. For example In 2011, 20 workers ofSainsbury went on a strike claiming employer's discrimination among them based on race,colour, sex. Sainsbury was also found guilty for misleading its investors and paying 12 million toresolve legal action.Environmental factorsInfluence of climatic and weather changes on the organization is imperative. Each andevery country has different environmental standards as well as laws which affect the revenue andprofitability ratio of the company at large. For example UK provides tax benefit to the companies
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