International Business Environment Assignment - Ford Motor Company
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Added on 2020-12-09
International Business Environment Assignment - Ford Motor Company
Added on 2020-12-09
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International BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Business techniques used to analyse international business environment.......................11.2 Impact of globalisation and international trade on national economies...........................3TASK 2............................................................................................................................................42.1 Analysis of micro and macro environment of Ford Motor Company..............................42.2 Benefits, opportunities and challenges of international trade and globalization..............6TASK 3............................................................................................................................................73.1 Implications for businesses of regulatory and cultural diversity in international markets73.2 Significance of CSR and sustainability in supporting business success..........................73.3 Potential conflicts between corporate strategy and ethical, social, sustainableresponsibilities........................................................................................................................8CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
INTRODUCTIONInternational Business Environment (IBE) is a multidimensional concept which includescultural differences, political risks, legal and taxation issues and exchange risks (InternationalBusiness Environment, 2017). In the present assignment, chosen organisation is Ford MotorCompany which is a multinational auto-maker of America headquartered in Dearborn, Michigan,U.S. This report covers evaluation of business techniques used to examine IBE and impact ofinternational trade and globalization on national economies. It also includes analysis of macroand micro environment along with evaluation of benefits, challenges and opportunities ofinternational trade and globalization. At last, significance of CSR and sustainability in businesssuccess and potential conflicts between ethical, social responsibilities and corporate strategy aredefined in this project. TASK 11.1 Business techniques used to analyse international business environmentIn today's competitive business environment, it is very necessary for organisations toanalyse the surroundings in which they run their operations. This assists businesses in attaininghigh growth and success. In analysis of international business environment, different tools andtechniques are used by businesses which are defined below: SWOT analysis:It is the tool used by businesses to analyse strengths, weaknesses, opportunities andthreats exist in internal and external environment of a particular enterprise. It includes collectionand delineation of information about intrinsic and extrinsic variables which may have influenceon business. It allows manager of firm to synthesize insights acquire from internal analysis ofstrengths and weaknesses of business with those from evaluation of external threats andopportunities (Tools for International Business Environment Analysis, 2017). Benefits:Helps in identifying future goals. Focuses on key external and internal variables affecting the firm. Disadvantages: No prioritization of variables.Factors are delineated too broadly. 1
Porter's five force analysis:Porter's five force model uses five forces to identify industry profitability and shapecompetitive strategy of company. It classifies and analyses key forces that affects intensity ofcompetition. This tool helps businesses in formulating strategies to enter into internationalbusiness environment. These forces determine structure and level of competition in an industry.A sector with having few suppliers and buyers but many substitute goods, low barriers to enter,more competitors will be considered as less competitive and therefore, not so attractive becauseof low profitability. The five forces includes in this tool are: Threat of new entrants. Bargaining power of customers.Bargaining power of suppliers. Threat of substitute.Industry rivalry. Benefit:It gives a comprehensive framework that assists in thinking about competitive forcesincludes within simple business structure. Disadvantage:It is incomplete as it doesn't address broader issues of business in multi-channel,multinational and multi product marketplace. PEST Analysis: It is the analysis of economic, political, technological and social factors in firm's externalenvironment, which can influence its performance and activities. It is a model of macro factorsutilized as environmental scanning element of international business management. This toolhelps organisations in understanding business position, potential, market growth and decline anddirections for operations. Advantages:It assists to create an objective view of new environment when entering a new market,region or country. Helps in reducing impact of potential threats to company. Disadvantages: It requires constant reviewing and revising by management. 2
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