International Business Environmental

Added on - 06 Jan 2020

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INTERNATIONALBUSINESSENVIRONMENTAL
Table of ContentsINTRODUCTION...........................................................................................................................4Main Body.......................................................................................................................................4CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12Books & Journals...........................................................................................................................12INTRODUCTION...........................................................................................................................1
INTRODUCTIONIn the present era, every company desires the long term stability and growth in themarket. There are very huge competition in the current market so as firm requires to developsuch effective business strategies and policies by which they sustain in the market and competewith rival in an effective manner. In order to earn the maximum profitability and stability in themarket, expansion of business in the other country is the best criteria for the organisation.International business is process under which organisation engage with the international market.In a simple term it can be said that international business is a commercial transaction that occuracross country borders(Acs, Szerb and Autio, 2016). The following report provides the depthknowledge and understanding about the international business environment. In addition to this,various concept, terminology and theoretical models associated with international businesspolicies and strategies has been also addressed with respect of the EU manufacturing company.Moreover, relationship between national and organisational culture has also studied in thisassignment.MAIN BODYInternational business is the best way to enhance the profitability and market share bysale the product and services across the boundary. In a simple term it can be said that while anycompany sale its product and services across the country border then it is known as theinternational business. The organisation which is deal with the global business then it has to facethe various kind of challenges related to currency, policies, regulation, code of conduct, culture,technology, financial investment and so on(Caganova, Cambal and Weidlichova Luptakova,2015).Thus, it is very important for the corporation which go to expand its business at globalmarket that it must effectively assess and analyse the market condition.A.E. Bush & Partner is a specialist in wholesale suppliers of reveneered chests and linenpresses etc in exotic woods. It produces the high quality and luxury furniture for office as well ashome used. The major objective of this organisation is to deliver the high quality and luxuryfurniture to customer and gain the large number of customer attraction, Market share andprofitability. It aims is to become the number one furniture manufacturing corporation in theworld as currently it is working in the UK. In order to get an excellent outcomes and highestprofitability and market share in the market, company is continuously make an effective effortsin field of innovation, technology, manufacturing, production, marketing etc. Now the managing
director of the A.E. Bush & Partner is thinking to expand its manufacturing furniture business inthe international market like India and Brazil. The managing director is quite confused to makedecision regarding investment as whether to set up a new£50 million production site in India orBrazil(Ferrell and Fraedrich, 2015). In order to expand the business in these countries related tothe £50 million production, cited venture required to analyse the international businessenvironment of these countries. There are various kinds of components which affect the businessactivities and function of the A.E. Bush & Partner in the global market. For analyse the businessenvironment, PESTLE model can assists to the cited venture. Following are description of thismodel-Political factor-This is one of the most influencing component which affect the businessactivities and function of the business enterprise. A.E. Bush & Partner company havre tounderstand and follow the all rules, regulation, code of conduct, legislation, policies andpractices which have developed by the Indian government while it enter in the indianmarket for expand is furniture business (Global Business Environment. 2016). India havestrong political system and there are various political parties which have taken part in thepolitics. In the India the taxation system of the government is well developed anddesigned and people have to pay the income tax, service tax, property taxes and salestax(Hitt and Xu, 2016). A.E. Bush & Partner company have to follow all taxation rulesand regulation related to the business. Different policies, practices, government rules andregulation may largely affect the business operation of A.E. Bush & Partner in the Indianmarket. If A.E. Bush & Partner will operate its business in the Brazil country, then it hasalso faced the challenge related to the corruption because in the Brazil there are big issuerelated to the corruption. Hence , it is very important for the company to make effectiveanalysis of the political environment.In the new market India and Brazil there are hugerisk related to the political factor, under which different kind of rules, regulation andlegislation may affect the business operation of the cited venture.Economical factor-Economic factor is another major component which have to analyseby the company. It includes the rate of interest, recession, inflation, economic growth,exchange rate etc(Ajmal and et.al., 2017). As per the research it has been founded thatthe economic situation of the India is string so A.E. Bush & Partner have not needed tomake extra efforts to generate revenue. India has done remarkable success in doing the
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