Impact of Climate Change on International Business

The assignment explores the impact of climate change on international business strategies, adopting an assessment model to measure its effects. It also examines several cases of oil firms affected by climate changes and their business strategies that have turned threats into opportunities.

THE IMPACT OF CLIMATE CHANGE ON
INTERNATIONAL BUSINESS STRATEGIES
“Dissertation proposal”

Table of Contents
RESEARCH PROPOSAL...............................................................................................................1
Introduction.................................................................................................................................1
Aim and Objectives.....................................................................................................................1
Rationale of the study..................................................................................................................2
Significance of the study.............................................................................................................2
Potential contribution to knowledge...........................................................................................2
Literature Review........................................................................................................................2
Research project specification.....................................................................................................4
Conclusion...................................................................................................................................5
Potential contribution..................................................................................................................6
REFERENCES................................................................................................................................7

RESEARCH PROPOSAL
Introduction
Climate change is known as one of the major challenge for international businesses that
impact on global economy to great extent. It is undoubtedly one of the critical theme for today, it
is fact that under the Business-As-Usual (BAU), changes in temperature can impact on world
economic output by 3%. Formal economic model states that if no action is taken by international
organizations then they may face huge loss (Oil Company Positions on the Reality and Risk of
Climate Change, 2017). It affects their business strategies because sudden changes in climate
can create issue for decision makers or strategies maker because they do not know level of
consequences that may arise in their organization due to climate change.
Oil and gas industry is one of the major contributor in economic development of United
Kingdom. Changes in population growth, ecosystems decline, reduction in natural resources etc.
can affect business operations of these firms (How Will Climate Change Affect The Oil & Gas
Industry?, 2015). Due to this, climate get changed and companies have to make new strategies in
order to run their business smoothly in the international market. As per the report of WRI 2011 it
has been shown that many of the firms have recognized climate change as strategic threat for
them and some of them recognize it as opportunity. But in both situations entities have to re-
design their business strategies so that they can sustain in the market and can turn the difficulty
from negative to positive.
Present dissertation is based on Petroceltic International which is a private oil and gas
development and production company. Study will discuss the impact of climate change on
international business strategies. Purpose of the investigation is to find out the factors that can
cause climate change in any geographical location. It will describe enterprise strategies of
Petroceltic International firm and will identify impact of climate change on its plan of action.
Aim and Objectives
Aim
“ To identify the impact of climate change on international business strategies; A study of
Petroceltic International firm.
Objective:
 To determine the factors that cause climate change.
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 To analysis business strategies that can support in operating business in any other
country.
 To identify impact of climate change on international business strategies of Petroceltic
International company.
 To recommend ways that can help entity in reducing negative impact of climate change
on international business strategies of Petroceltic International firm.
Rationale of the study
In today's era prices of oil and gas are changing frequently. The main reason of this is
changes in weather condition. Climate change impacts on oil firms badly and in such situation it
is very difficult for entities to be stable and run their business(How Climate Change is Shaping
the Future of Business, 2012). With the help of this investigation oil firms will get to know
factors that can affect climate change and level of consequence that can arise in business
operations. It will help in identifying necessary modifications in business strategies that can
support in turning climate change situation into opportunity for firms.
Significance of the study
Present dissertation will be beneficial for international organizations those which are
operating in other countries and getting affected by climate change. These entities will get to
know ways of turning threading situation in opportunity for them. With the assistance of this
investigation government will be able to make control over changing price of oil and gas. Study
will support in creating positive situation for these entities, by this way they will be able to
contribute well in economic development of nation (Reckien and et.al, 2014). By this way
authorities will be able to reduce currency fluctuation in the country and it will enhance import
and export business of the region.
Potential contribution to knowledge
Present research topic is impact of climate change on international business strategies. It
would be the first thesis on this subject matter. It will define the failure and success of oil firms
due to climate changes in the international market.
Literature Review
According to Nordhaus, (2015) climate change is big issue in UK and all around the
world. These changes are unavoidable, changing seasons, earlier blossom etc. can not be
avoided. In the present era oil and gas industries are in spotlight, GHS emission impact on their
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operations and creates threat for them. As per the view of Pauli, Gottfried and Grabherr, (2014)
green house effect is the major element that cause earth to be warmer due to this atmosphere get
changed. Green house gases such as CO2, methane, nitrous oxide, fluorinated gases affect the
environmental conditions. That increases temperature of the earth that creates situation of
climate change in the geographical location. Lee, Park and Klassen, (2015) has argued that
cutting down forests, burning coal are the major reason of climate change. That negatively
impact on the atmosphere and due to this global warming type of situations get arise in the
country.
Illustration 1: Gases that contribute to greenhouse effect
Source: (How Climate Change is Shaping the Future of Business, 2012)
According to Kaján and Saarinen, (2013) oil and gas firms have to run their business as
per the culture, climate of particular location. If there is sudden change in the atmosphere then
they have make immediate modifications in their operational strategies so that they do not face
loss. Geneva Association, (2014) has argued that machineries used by the entities, operating
methods are much more depended upon the geographical location. When organization operate its
business in the international market then they have to adopt technologies as per the requirement
of this era. This strategy support the firms in running their operations in the international market
smoothly.
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Illustration 2: Impact of climate change on investments
Source: (Oil Company Positions on the Reality and Risk of
Climate Change, 2017)
According to Kriegler and et.al, (2014) Adapting for green economy is the report of WRI
which was released in the year 2011. In this report it has been shown that climate change is the
strategic threat for oil and gas companies but few of them are able to redesign their strategies in
order to give response of these risk of climate change. These changes in strategies have helped
the entities in increasing their revenues and due to this, prices of oil get stable for that time
duration. Pätäri and et.al, (2016) has stated that climate change affect long term business interest
but firms are thinking broadly and making external changes in their strategies in order to turn
risk into opportunities. Author has stated that increasing temperature can help in manufacturing
solar panels that would increase demand for clean energy. On other hand as per the view of Lee,
Park and Klassen, (2015) continuous changes increases cost of oil and gas industries and due to
this their business strategies get failed to give good return to the organization. In such situation
company has to close their business from the geographical location until climate gets changed
again.
Research project specification
Research philosophy:
In the present dissertation research will take the support of positivism philosophy. In this
method individual will test the hypothesis in order to find out the results. It will support in
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generating link between climate change and its impact on international business strategies.
Research approach:
Scholar will use the inductive approach in the present study. It will be suitable for the
present research topic because by this way it will be able to develop interconnection between
developed hypotheses and different theories (Reckien and et.al, 2014). With the help of this tool
individual will be able to test the hypotheses and will get final outcome.
Data collection:
Data will be collected from primary and secondary both sources. Both these sources will
assist in gathering in-depth information about the impact of climate change on international
business strategies.
Data analysis:
Present study is quantitative so researcher will use SPSS tool for data analysis. SPSS will
be better option for the present research because by this way accurate results will be gathered by
the entity in this respect (Oil Company Positions on the Reality and Risk of Climate Change,
2017).
Reliability and validity:
Secondary data sources will give reliable information to the scholar so that individual
will get desired results. Investigator will pay attention on ethical aspect and will not break any
norm in any condition. Individual will collect data from authentic and reliable sources so that
individual can get optimistic results.
Ethical consideration:
Before asking questions with the respondents' researcher will sign consent form with
them so that further complications can be avoided. In addition, individual will not commercially
use this information, it would be only for current dissertation (Reckien and et.al, 2014).
Conclusion
From the above discussion it can be concluded that climate change is the biggest problem
in front of oil and gas companies. It impacts on their business strategies to great extent. But firms
those which are operating in international market convert threats into opportunities and make
necessary changes in their existing strategies. That supports in sustaining in the market for longer
duration. Companies are trying to make effective control over their operations so that they do not
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get affected by climate change, though it affects their operations badly but by making changes in
their operations Petroceltic International firm can create opportunity for itself.
Potential contribution
Researcher believes that present dissertation is first thesis which highlights impact of
climate change on international business strategies. The finding of this study would be first step
and it would encourage other scholars to conduct further investigations on the same topic.
Furthermore, literature will define several cases of oil firms that has been affected by climate
changes. It will also describe their business strategies that has turned threats into opportunities.
In addition, current dissertation will adopt assessment model for measuring impact of climate
change on international business strategies.
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REFERENCES
Books and Journals
Geneva Association, 2014. The Insurance Industry and Climate change-Contribution to the
global debate. The Geneva Reports. 2(1). pp.1-152.
Kaján, E. and Saarinen, J., 2013. Tourism, climate change and adaptation: A review. Current
Issues in Tourism. 16(2). pp.167-195.
Kriegler, E. and et.al., 2014. A new scenario framework for climate change research: the concept
of shared climate policy assumptions.Climatic Change. 122(3). pp.401-414.
Lee, S. Y., Park, Y. S. and Klassen, R. D., 2015. Market responses to firms' voluntary climate
change information disclosure and carbon communication.Corporate Social Responsibility
and Environmental Management. 22(1). pp.1-12.
Nordhaus, W., 2015. Climate clubs: Overcoming free-riding in international climate policy. The
American Economic Review. 105(4). pp.1339-1370.
Pätäri, S. and et.al., 2016. Global sustainability megaforces in shaping the future of the European
pulp and paper industry towards a bioeconomy. Forest Policy and Economics. 66. pp.38-
46.
Pauli, H., Gottfried, M. and Grabherr, G., 2014. Effects of climate change on the alpine and nival
vegetation of the Alps. Journal of mountain ecology. 7.
Reckien, D. and et.al., 2014. Climate change response in Europe: what’s the reality? Analysis of
adaptation and mitigation plans from 200 urban areas in 11 countries.Climatic
change. 122(1-2). pp.331-340.
Online
How Climate Change is Shaping the Future of Business, 2012. [Online] Available through:
<http://www.wri.org/blog/2012/05/how-climate-change-shaping-future-business>.
[Accessed on 26th June 2017].
How Will Climate Change Affect The Oil & Gas Industry?, 2015. [Online] Available through:
<http://keystoneenergytools.com/blog/how-will-climate-change-affect-the-oil--gas-
industry-1>. [Accessed on 26th June 2017].
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Oil Company Positions on the Reality and Risk of Climate Change, 2017. [Online] Available
through: <http://www.uwosh.edu/es/climate-change/oil-company-positions-on-the-reality-
and-risk-of-climate-change>. [Accessed on 26th June 2017].
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