Risk Factors in China and UK International Business : Report

Added on - 21 Jul 2020

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International Business: Riskfactors that influencing Chinaand UK business
ABSTRACTThis report is all about identifying all the risks factors that are affecting the existingbusiness of UK and China on a global level. International business is the major aspect of thecurrent research report as it target major country's market such as United Kingdom and china.Walmarthas been chosen in the research study which has higher skills in terms of technologythat boosted its current market share and in turn increases its overall value in the externalenvironment. Walmart faces both political or geopolitical risks which is affecting its entireperformance. Market share of Walmart is higher than large number of stores of this entityenhances its value in front of the external business environment. Legal regulations are followedby this entity will be helpful for them in order to improve their existing performance.
Table of ContentsCHAPTER 1 INTRODUCTION....................................................................................................1Background.............................................................................................................................1Aim.........................................................................................................................................2Objectives...............................................................................................................................2CHAPTER 2 LITERATURE REVIEW..........................................................................................3Gap analysis............................................................................................................................7CHAPTER 3 RESEARCH METHODOLOGY..............................................................................9Research questions.................................................................................................................9Data collection methods.........................................................................................................9Data analysis.........................................................................................................................10Evaluation.............................................................................................................................10CHAPTER 4 DATA ANALYSIS................................................................................................12Discussion.............................................................................................................................12CHAPTER 5 CONCLUSION AND RECOMMENDATION......................................................14Conclusion............................................................................................................................14Recommendation..................................................................................................................14REFERENCES..............................................................................................................................15........................................................................................................................................................18
Topic-To identify the political risk faced by UK and China businesses during tradeCHAPTER 1 INTRODUCTIONBackgroundCurrent research report is based on identifying all the risks factors that are affecting theexisting business of UK and China on a global level. The major aspects covered in the wholereport is international businesses as it target major country's market such as United Kingdom andchina which is higher in terms of technology that boosted its current market share and in turnincreases its overall value in the external environment (von der Heidt, 2015). Assessment of theexisting market is essential for the external users in order to invest in the current market asinvesting in strong market will in turn increases its overall sales and the revenue. Image of thebusiness will be created easily by catering all the services to the consumes in order to capturehigher market share.Retailsector has chosen as common organisation that exists in both thelocation as it is located on a global level which helps in ascertaining the actual condition ofinternational business.The current condition of an entity will be easily determined by achieving desired aimsand targets within a given span of time. Risks is regarded as the common factor incurred in everyenterprise whose efficiency will be judged by an entity owner in their business which helps instrengthening the current business.Firms operating in retail sectoris required to change theirtraditional practices according to the external market changes as in this way the worth of anentity will get increases (Zhilong, Bowen & Yu 2015). Role of an entity is important for anenterprise as this helps in generating higher sales and the revenue in short span of time ascompared to the existing market rivals. Risks are associated with an entity need to be recognisedby an employer by analysing their performance in relation to several parameters set by them inorder to grab higher market share. Risks will be minimised by an entity owner by emphasises onthe desired aims and targets which enhances the quality of services offered by them to all itsstakeholders.Negative factors are taken as one of the important parameters in order to improve thecurrent business performance of an entity as their desired aim is to grab higher market share. Thecurrent business condition of an entity will get improved with the passage of time when anemployer emphasises on the desired needs and expectations (Wood, 2015). Existing business1
condition are analysed properly in order to target higher market share as global entity whosurpasses its domestic boundary require unique skills in order to maintain its survival for longtime in the current business.AimTo Identify risks factors that influences UK and china businesses on global levelin respect toretail sectorObjectivesTo evaluate factors that might create risk for businesses like WalmartTo analyse the position of retail industry across the globe.To determine measures that retail sector employs to control riskTo recommend ways that can improve risk management aspects within organisation2
CHAPTER 2 LITERATURE REVIEWFactors that might create risk for businesses like WalmartAccording toWu & et. al., (2015)which observesthat being a large industrythey arerequired to manage all its operations in the best suitable manner. Satisfaction of customer's needsand expectation will be helpful for an entity in order to create loyal customers. Risks will beascertained by an entity as this would affect the entire financial as well as non-financialperformance of an entity over a certain period. Risky factors are required by determined as theretail sector is large industryin both UK and China businesses that may influence its existingmarket share to be affected with the wrong usage of information on global level. Basic factor ofrisks faced by an entity is higher level of competition faced by an individual operating their firmby offering unique product or services in the external business environment.Caraway (2016)has asserted that risks is always negative for an entity as it affected thecurrent status of an entity which gets disturbed due to the heavy imposition of external marketpressure. Political risks is one of the risk faced byretail sectoras governments of a country willintervene in the every business decision taken by an entity. The impact of the political risksaffected an entity for long term as every legal reform launched by an entity will restrict theexisting actions of the business concern. Political decision's and its stability needs to be analysedby an entity in advance as this would affect its entire business performance.Launching of any new products or services in the existing market require prior approvalof the government by taking legal licensing and permission in order to implement their decisionwithout any burden in the external market. An entity is required to analyse its actions in relationto the external party's aims and targets which needs to be completed within a short span of time.Political risks incurred in the external environment of UK and China are required to beascertained by Walmart as this would affect all it investment requirements of a business.Investment in the Walmart gets reduces when heavy duties and legal reforms created by the legalauthorities of both the countries. Global enterprise are required to follow all the rules andregulations that facilitate their firm in enhancing their existing business by targeting higheraudiences in the business environment.Another risks facedby retail sectorin relation to the geopolitical segments whichincludes that Walmart faces challenges in terms of supply chain management. Export and import3
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