International Management : PDF

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International ManagementPractitioner 2
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3Example 1...................................................................................................................................3Example 2....................................................................................................................................6Final analysis of change in global environment of EY...............................................................9CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONGlobalisation comes from an English word which refers to the internationalisation ofbusiness and its services or products.This report briefly describes and shows the results andimpacts of financial globalisation crisis, which occurred in 2008. Due to increase in excess creditgrowth in international markets. Further, described the situation of organizations before and afterthe crisis in context with Ernst and Young. EY is one of the leading firm providing services toother companies across the world like auditing of tax reports, financial accounts, balance sheets,etc. EY functions as a link between other companies which are also a separate legal entitiesregistered in their country. The study is conducted by taking two examples in consideration, firstrepresents the situation of company before crisis and other represents condition or situation aftercrisis. Final analysis on change in business environment of businesses is done on the basis of EYcompany to show their operations of company and effects of crisis on business after crisis.Example 1Before the crisis of 2008 Ernst and Young had a historic development and expansionaround the world in the era of globalization. In 2002 EY over ruled many of the ex- ArthurAndersen functioning all over the world except in UK, China and Netherlands. From verystarting EY was merging all of its firms from ancestors into one and was continuously expandingits markets all over the world(Arestis and Singh, 2010). Globalization had a good impact on EYin terms of expansion, in 2006 EY became the only member of the big four to have two memberfirms in United States. These changes in company by expansion and growth lead company toheights of success. Pest analysis in context of example is as follows:Political factors:At that time company has faced many issues in their politicalenvironment before the crisis of 2008. Expansion of company took a great turn in 2002and 2006 when company took over Arthur Andersen all over the world except somecountries. Laws such as employment laws, consumer protection laws, taxationregulations, environmental regulations, etc. were affecting company's operationscrucially and organization needs to look over them continuously. Following politicalfactors are important for the company to implement strategy of growth and expansion:Government stability is important for the company to provide their services inthat country without any issue. Non stability of government in any country can
make company suffer great losses and loss of business with the firms of thatcountry. Stable government helps companies to understand norms and regulationof that company.Employment and operational law: Company should be aware of the employmentlaws of the country where the employee is being employed, to prevent any kindof judicial proceedings. Company should also have a brief understanding ofoperational laws of the country where the office of company is being situated forsmooth functioning of business.Tax regulations: Regulation act should be analyse thoroughly to enable companypay right amount of tax to the government of that country. Every country hasdifferent tax regulations act in respect to their law, organization need to followthem all(Beck, 2018).Economic factors:For continuing expansion and growth of company without anyissues in economic environment of the business, some factors were taken care of likeinflation rate, taxes, exchange rates, globalization of other companies, etc. these allfactors were important to consider. Economic areas often indicate areas where moredescriptive information is needed. To be unaffected by economic factors company, needto consider these following factors:Inflation: Inflation can result in increased rated of products and services.Company should keep a sharp eye on chances inflation to avoid loss in business.As inflation can result in decreased sale of goods and services, to avoid suchsituation company need to form some strategies to fight with problem ofinflation.Taxes and Duties: Tax reforms by government should be studied well of thatcountry where expansion is going to take place of the company to understandworking practices and reforms.Cost of living: This could be the important factor for EY for enablingoutsourcing for growth of the company(Fujita and Thisse, 2013).GDP and GNP: Gross domestic products and gross national products are to beconsidered before overtaking any firm by the company.
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