This article discusses the emerging trends in the global business environment and their impact on organizations. It explores the role of the managerial team, employees, and human resource department in the internal business environment. Additionally, it examines the influence of external factors on current business trends.
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Trends in Global Business Environment1 TRENDS IN GLOBAL BUSINESS ENVIRONMENT Student’s Name Course Name Professor’s Name University Name City, State Date
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Trends in Global Business Environment2 Introduction There are various emerging trends in global business environment in the current epoch. In this case, a business environment is both an internal and external factors that affects the normal operations of a business. Additionally, every business is affected by both its own factors such as workers and the external factors such as politics. Apparently, the internal environment entails the factors that have a direct impact to the business. Just to mention, the impact should be related to the daily activities of the organisation. Customers, suppliers and the competitors are the main factors that revolve around an internal business environment. Also, the shareholders and employees are considered as the internal factors of a business environment. The internal business environment needs factor that would result to success in the business. Contrarily, as the external business environment, the organisation has the mandate of control over the internal factors that affects a business environment. The paper seeks to identify various trends in global business environment as illustrated below. Research Questions This study will attempt to answer the following research questions: 1.What is the role of the managerial team in the implementation of the internal business environment? 2.Do employees have any strength in an internal business environment? 3.How cantheeffectiveness of an organisation improved within the human resource department? 4.Doesthesegments of the external business environment has target on the current business trends?
Trends in Global Business Environment3 Literature Review Gomes and Romão study reveals thatthe role of the managerial team is essential in the internal factor of the business environment .Organisational culture is built through the managerial strategies (Gomes and Romão, 2017:10). In most cases, firms would provide a formal structure with its goals and objectives. Effectiveness of communication and the values of employees are some of the cultural implications based on management approaches. Romero and Vernadat study explains thatemployee’s strength is a basic factor of an internal business environment (Romero and Vernadat, 2016: 10). These employees must be hardworking and talented for the sake of the success of a business. Motivated employees would produce better results in an organisation as compared to unmotivated employees. The employees will produce a better result. According to the study carried out byAmarasena , A., 2017. Current trends in the international business environment.Universal Journal of Management,5(8), pp.381-394, is the core article for further research which states that theeffectiveness of an organisation can be improved within the human resource department. The workers are designed to work together on the ideas and objectives. Strengths have a positive impact on the environment whereas weakness produces harm on the business. The outside factors can influence a business in one way or another. The strategic goal scans also affect the organisations objective. External goals can enable other factors to achieve a strategic plan. The external factors might include competition and technological changes within the organisation. According to the study ofZhang, Loh and Van Thai, thesegments of the external business environment has target on the current trends (Zhang, Loh and Van Thai, 2015: 140).
Trends in Global Business Environment4 Findings Apparently, it has been found out that there has been a tug of war between macroeconomic fundamentals on the current trend. Apparently, there have been predictions about the collapse of globalization due to a wave of economic nationalism. The flat world has dominated the global business dissertation. Basing on Philip Bastian DHL Global index, the world ended 2017 from globalisation (Nikitina and Lapiņa, 2017: 57). However, 2018 had brought out new obstacles that resulted from tariffs to blocked achievements. The outcome was a change playing ground rather than ending the business competition. Smart business ideas relay on the accurate perceptions of the business environment. The management of a business should include a clear view of how globalization is trending. For instance, the growth across most of the world fuelled the DHL Global Index to higher levels. In this case, trade potions increased making people to flow across national borders (Nelson and Grayson, 2017: 50). Just to mention, this happened last in 2007. General In 2018, the global trends in the business environment formulated major policies threats which turned from rhetoric to reality. Tactfully, there was a tit for tat increase in tariffs due to the disputes that arises from the United States and their trade partners (Gomes and Romão, 2017:10). Countries were strict on screening foreign corporate takeovers. Immigration was clamped down by the rules put in place to reduce free trade. Apparently, other developments begun to affect various international flow but trade continued growing with a decline in foreign direct investment. Market integration has been limited in absolute terms. The foreign operations of
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Trends in Global Business Environment5 multinational organisations across the globe constitutes to only 9% of the world’s output (Cullen, 2017: 235). Discussion The existing contrast of global flows running close to all time but still underperforms basing on the managers expectations. There has been a difficulty in succeeding across borders and distances but the same barriers that contain international flows have increased the rewards for companies that strive to overcome them. They are various strategies that should be put in place by business leaders for the sake of achieving success (Cavusgil and Knight, 2015:10). The strategy includes how to compete, where to compete, how to organise, and how to engage better with society. Firms with marginal competitive positions are more vulnerable when globalization continues to stand. As the policy business factors continue to shift, a business should avoid the temptation to respond to each kind of development. The organisation should have a sufficient advantage over its competitors in order for the company to stay longer in the market. Apparently, a strategic retreat might be necessary. More so, an organisation should consider whether they need to rebalance across the time frame on the international strategies. Aggregation and arbitrage creates value among most countries (Brătianu, 2019: 113). A company is advised to strategies before making a decision on the kind of approach the want to settle for. The current trends of the business environment suggest that many firms should prefer aggregation in the reliance on arbitrage. The United States and the Canadians had an agreement of reducing the opportunities for arbitrage in the automotive manufacturing by reducing the labour cost per hour (Boso, Adeleye and White, 2016: 30). The adaptation would increase the geographic reach of aggregation and
Trends in Global Business Environment6 arbitrage. In the case, there is a reduction in the economies of scale or a decline in foreign inputs. There will be a need of boosting adaptation through localization when the barriers to globalization increase. However, there will be need for localization in order to increase a comparative advantage over other competitors (Amarasena, 2017: 381). Any person with a cautious mind will admit that comparative advantage is the most important factor that cannot be sublimed as far as competition is concerned. Company has to consider the option of retreating from other markets. In this context, where to compete is the most vital factor that cannot be sublimed. Conclusion In conclusion, trends in the global business environment have enabled the improvement on the performance of most organisations across the globe. The internal and external factors should be considered for the success of a business. The most important factor to be considered in the global business environment is competition. Competition can cause the failure of a business at any given level. Apparently, companies must make sure that they have the comparative advantage over other competitors in the market. Unhealthy competition has caused the failure of most companies across the world. The internal business environment needs factor that would result to success in the business. Therefore, as the external business environment, the organisation has the mandate of control over the internal factors that affects a business environment.
Trends in Global Business Environment7 Recommendation for Further Research It is therefore, recommended to carry on a further research on the study by Amarasena , A., 2017.Current trends in the international business environment.Universal Journal of Management,5(8), pp.381-394, which reveals that theeffectiveness of an organisation can be improved within the human resource department. In this case, the workers are designed to work together on the ideas and objectives. Strengths have a positive impact on the environment whereas weakness produces harm on the business. Therefore, this would answer the research question of howthesegments of the external business environment has target on the current business trends.
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Trends in Global Business Environment8 Reference List Amarasena, A., 2017. Current trends in the international business environment.Universal Journal of Management,5(8), pp.381-394.Retrieved From: <http://www.hrpub.org/journals/article_info.php?aid=6250> Boso, N., Adeleye, I. and White, L., 2016. Africa-to-Africa internationalization: Emerging trends and key issues. InAfrica-to-Africa internationalization(pp. 3-34). Palgrave Macmillan, Cham. Brătianu, C., 2019. Book review: Dima, AM (Ed.).(2018). Doing business in Europe: economic integration processes, policies, and the business environment.Ekonomia i Prawo. Economics and Law,18(1), pp.111-115. Cavusgil, S.T. and Knight, G., 2015. The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization.Journal of International Business Studies,46(1), pp.3-16. Cullen, G., 2017. Educating business students about sustainability: A bibliometric review of current trends and research needs.Journal of Business Ethics,145(2), pp.429-439. Gomes, J. and Romão, M., 2017. The Balanced Scorecard: Keeping Updated and Aligned with Today´ s Business Trends.International Journal of Productivity Management and Assessment Technologies (IJPMAT),5(2), pp.1-15. Nelson, J. and Grayson, D., 2017. Global trends and motivations driving the growth of corporate responsibility coalitions. InCorporate Responsibility Coalitions(pp. 46-51). Routledge.
Trends in Global Business Environment9 Nikitina, T. and Lapiņa, I., 2017. Overview of trends and developments in business education. InProceedings of the 21st World Multi-Conference on Systemics, Cybernetics and Informatics (WMSCI 2017)(Vol. 2, pp. 56-61). Romero, D. and Vernadat, F., 2016. Enterprise information systems state of the art: Past, present and future trends.Computers in Industry,79, pp.3-13. Valentini, C., Kruckeberg, D. and Starck, K., 2016. The global society and its impact on public relations theorizing: Reflections on major macro trends.Central European Journal of Communication,9(2). Zhang, A., Loh, S. and Van Thai, V., 2015. Impacts of global manufacturing trends on port development: the case of Hong Kong.The Asian Journal of Shipping and Logistics,31(1), pp.135-159.