The Global Business Environment | India

THE GLOBAL BUSINESS
ENVIRONMENT

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Contents
Task 1: Globalisation............................................................................................. 1
Introduction............................................................................................................ 1
Factors responsible for globalisation.............................................................................2
Task 2: Political and Economic systems............................................................................ 2
Political systems...................................................................................................... 2
Economic systems.................................................................................................... 3
Task 3: Culture........................................................................................................... 3
Three cultural factors affecting the operations..................................................................3
Importance of culture in operational success....................................................................4
Task 4: Free Trade...................................................................................................... 4
Free trade policies impact on the operations....................................................................4
Implication of free trade policies.................................................................................. 4
Task 5: Protectionism................................................................................................... 5
Impact of domestic government’s protectionist policies......................................................5
Task: Ethics............................................................................................................... 5
Ethical issues faced by the multi-national companies.........................................................5
Corporate social responsibility venture..........................................................................6
Conclusion and Recommendation.................................................................................... 6
Advice about intricacies of legal environment..................................................................6
Conclusion and Recommendation................................................................................. 6
References................................................................................................................ 8

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Task 1: Globalisation
Introduction
Multinational business organisations face any types of challenges in different nations. This is
due to the external factors that lie in that nation. It is critical that firm makes strategies that
help them in facing these challenges. At the same time there are different factors that are
responsible for globalisation (Chung, et al 2010). There are certain other factors that are
having impact on the operations of the firm in any nation. In this report the ways in which
political, economic, cultural, free trade, protectionism, and ethics effects the operations of
Coca-Cola in India has been illustrated. In the last section the recommendation regarding
intricacies of the legal environment has been presented.
Factors responsible for globalisation
Some of the factors are:
 Technology: With the help of technology multinational companies can work in all the
parts of the world just by connecting with each other. Information Technology along
with internet helps an organisation to make coordination among the units in different
parts of the world (Poranki and AbulKhair, 2016). Data technology helps an
organisation to understand the challenges that might face by analysing the data that
they have accumulated in their business.
 Demand in the markets: Demand of the people at global levels is calling for the
companies to come in different market. With the help of the advanced media people
all across the globe are generating demands for the similar types of products (Belniak,
2015). This calls for companies to look for the new markets which help them in
improving their sales growth in the market.
 Political support: There are different types of policies that are made by different
governments in different parts of the world. They are opening their markets and
reducing taxation on the companies so that multinational firms can invest in their
nation. This is acting like an opportunity for the companies to look for the new
markets.