Unit 18 Global Business Environment - Assignment
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Unit 18: Global Business Environment
IntroductionBecause of reduced prices, and lower costs generally, better efficiency or product creativitybusinesses may succeed in all industries. The 'choice' is usually presented in civil aviation asone between either low costs or high quality / service innovations.(Jarvis 2014)Nonetheless,airlines are constantly having to perform on all three factors as, in an unsound setting, thecycle of imitation is becoming quicker, and rendering it impossible for each carrier to retaincompetitive advantages on the basis only of service efficiency or product developments.P1Mauritius Air, which accounts for 76% of its domestic output and 56% of foreign output in2008, is the largest airline in Mauritius. Air Austral, headquartered in Reunion, Air France,Emirates, South AfricanAirways and British Airways, and were the top international air linesserving Mauritius in 2008. (Jarvis2014) In 1995 the British and U.S. governments decided tochanges to the original Bermuda II arrangement to require additional airports that effectivelyderegulated most of the United Kingdom-US. However, the privileges of seventh rights fortransport services are very unusual. (Corke2006) In addition, certain factors must beconsidered: cost, market, environment, and competition:Cost –In addition to clear cost factors such as delivering and innovation tracking forlogistical tasks, the Company should also be paying for cost elements in its marketing,financial and business divisions.R & D –Perhaps overseas, what operates well in a nation does not work. Enterprisesmust examine facilities, society, and community in order to survive.Exchange Rates –Leading international companies need to exchange the foreigncurrency of the host country with the legal tender of the foreign country.(Jarvis 2014)The transfer scene will only wobble within seconds, though, so money dealing can beexorbitant so dangerous.Tax –International corporations are subject to international market taxes.Intentionally, the governments of several countries established a low tax rate to enablecompanies to open to enterprises inside their territories.Population –In one nation or market, the potential client population varies greatlydepending on the product or service that a company market.Income –Many eyewitnesses agree that wage level is a key model to determine thetarget markets.Marketing Trends –Market patterns offer industry and the economy logicalmeaning by depicting existing behaviours and their budgetary development.Projections –The majority of market analyses also include a sector which shows thecompetition of the company with a similar evaluation applied to the researchcompany.Rivalries –This are the main external element that can affect a company's strategy.(Jarvis 2014)Environmental regulations are a business' obligation to the rules,legislation and other regulatory instruments dealing with the environment.Environmental Policies –They are the main external element that can affect acompany's strategy.(Jarvis 2014)Environmental regulations are a business' obligationto the rules, legislation and other regulatory instruments dealing with theenvironment.
To open its activities in Mauritius, British Airways, BA must take care of theseconsiderations:Costs - Even though there is no coverage by the private office, Mauritius is wellpositioned on all different indexes and, for ease of loan, followed by the World Bankand the IFC. In terms of investor protection, this also works well across the board.Tax rates in Mauritius are competitive, despite being expensive.(Jarvis 2014)Peryear there are seven episodes, which usually require 168 hours for recording.Workers' taxes on the National Pension Fund (NPF), combined with company incometax – 20percent rate – and VAT levied at a comparable amount, are among the mostrepetitive factors.Markets – Etihad airways is now Mauritius' largest foreign airline, with a total of over25% share of all seat capacities worldwide. Following Etihad, Mauritius now has 14other international flights including 8 European airlines and 5 African airlines.(Jarvis2014)Many other international airlines have recently begun to fly in Mauritius.Environment – Mauritius' main environmental problems include water contamination,soil erosion and conservation efforts. Wastewater and traditional farming substancesare sources of water pollution.(Jarvis 2014)The urban areas of Mauritius generate0.085 million tons of solid waste annually. Soil erosion is caused by desertification.Rivalries – The main rivalries are – Qatar Airways, Etihad Airways, Kenya Airways,Indonesia Airways, and so on.Although the population is small because there is strong pressure, British Airways inMauritius will still do business as its revenue is strong.(Jarvis 2014)British Airways willbenefit from the reality that customers have large salaries and can afford to travel. BritishAirways will eventually launch a business in Mauritius.P2The supply chains cover businesses and the planned operations. Make a good or service,convey it and use it. Companies depend on their distribution networks in order to allow themto survive and prosper. Every company fits one or more supply chains and has a task.(Jarvis2014)The Supply Chain managers organize the development, distribution, position, andtransport of the supplier supply chains to achieve the best balance of market responsivenessand expertise.Each manufacturing process has its own single set of requirements on theindustry and operational challenges, but for each situation the problems remain largelysimilar.Production - What is the consumer wanting items?(Jarvis 2014)How many items should besupplied and by when? This activity comprises the development of master production plansthat consider plant capacity, workload balance, quality assurance and replacement ofmachinery.Products/Services Focus - A plant that concentrates on a commodity conducts variousoperations to generate a specific product line from the manufacturing of differentassemblies of such parts.Operations Focus - A functional technique is focused only on the performance of afew tasks, for example simply creating a selected group of parts, or simply carryingout the assembly.
Inventories - Whose stock will be kept as fresh, semi-finished and completed commodities?The basic function of a related to the supply chains is to serve as a shield against insecurity.(Jarvis 2014)Nevertheless, the inventories may be costly, in which stock rates and reorderpoints are ideal. There are three key decisions to be made with respect to inventory formationand carrying:Cycle Inventory – Firms will generate and acquire in large properties so that thebenefits economies of sizes can be achieved.(Jarvis 2014)This is the amount ofinventory expected to meet price of the product in the time frame between thepurchases of the product.Safety Inventory – If the prediction of requests is carried out with perfect accuracy,then the only inventory needed is a cycle inventory. This inventory should be carriedout in a complete way.Seasonal Inventory – This is a stock formed in expectation of coherent costs increaseat times of each year.Location - How should development and stock storage facilities be located? Where are thecheapest places for manufacturing and stock storage?(Jarvis 2014)Must current or newservices be used? When such decisions are made, they determine the possible paths for theproduct to be delivered to the end consumer.(Jarvis 2014)Managers need to consider severalfactors that recognise with a place, including costs for installations, work costs, availability oflabour, infrastructure conditions, taxes and duties, and proximity to suppliers and customers,when making their investment decisions.Transportation - How should inventory be transferred to another location in the productionprocess? Shipment by oversea or rail is considerably cheaper but generally requires greatertravel time and more complexity. This volatility needs to be accounted for by the handling ofhigher sales volumes. When it is easier to choose the transport system:Shipping – It is cost-effective and is often the most inefficient form of transportation.It can be used only between places near rivers and marinas.Railing – This mode can also be used between places that are represented by rail lines.It is economically effective but it can also be inefficient.Pipeline – They can be extremely productive, but are limited to liquids or gasesproducts such as water, oil, and gas. They are also very successful.Truck – They are a quick and truly flexible transportation method. There may betrucks anywhere.Planes – They are fast and open to transportation. It is often the costliest method andthe range of airport services is very restricted.Electronic Shipment – It is the fastest way of transportation and is genuinely adaptedand cost-effective. Nevertheless, for transport of certain types of products, such aselectricity, data and products made from information, such as music, illustrations, andtexts, it must be used.Information - Which details will be stored and what data should be shared? The pledge ofimproved integration and improved decision-making lies within timely information. Withgood data people could make efficient choices about how to generate or how much to findstocks as well as how to travel them greatest.