The Global Business Environment

THE GLOBAL
BUSINESS
ENVIRONMENT

Table of Contents

INTRODUCTION
Business operate in the turbulent environment that constantly chances and leads to
diverse impact in the performance. In order to sustain in the global business environment
effective decision are taken by exploring the opportunity as well as threat that exist in the
external environment. Preparation of adequate strategy by gaining the deep insights enhances the
probability to attain success and get the benefit of competitive advantage. Further, the term
globalisation may positively and negatively affect the operation by enhancing the opportunity as
well as global competition (Black, Morrison and Gregersen, 2013). So the internal manager need
to have foresight vision in order to tackle the situation and explicitly cater long term advantage.
For the better understanding Volvo cars has been selected which is the part of Automotive
industry and cover the global market successfully. The company engages in the activity which
are associated with the production and sales of heavy vehicles like buses and truck. To cater the
existing demand the company has become revolution by modifying the technology and coming
up with electric cars to cover the potential market successfully. The essay focuses to shape the
existing policies by making the necessary precautions for future in order to gain the long term
competitive advantage. Along with that focus is given to identify and exploit the opportunity
available in the external market to gain the profitable situation effectively.
MAIN BODY
A. “Electric vehicles in Europe: gearing up for a new phase?
Business environment refer to the surrounding that consist of diverse factors like
competitive pressure that can affect the ability of firm to operate in the external condition. It
basically involve the various major forces that direct affect the profitability of firm. So the
successful organisation analyse the external changes or force and promote the upcoming
changes. Accordingly, the car manufacturing company which is Volvo can shape its process that
leads to the sustainable development.
Further, application of Porter's five force model is the strategic model or frame work that
determine the significant forces which can be the strength of company if it inculcate the strategy
properly and leads to competitive advancement. It simply determine the attractiveness and
profitability that differ from one region to another. So the Volvo car company need to understand
diverse phases and can effectively shape the functioning of firm. It involve forces like Threat of