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Global Business Environment Is The Environment Of Global Business

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Unit 18: Global Business Environment INTRODUCTION 1 ACTIVITY Level 1 1 Critical analysis of impact of key factors over business 1 ACTIVITY 2 3 Analysis of strategic challenges faced by Siemens 3 ACTIVITY 3 5 Critical evaluation of global market influence and organisational structure and culture of global business 5 ACTIVITY 4 8 Key barriers of business in doing business internationally 8 CONCLUSION 10 REFERENCES 11 INTRODUCTION Global business environment is the environment whichincludes businesses of different countries along with the influencing factors of home country effecting their decision making process

Global Business Environment Is The Environment Of Global Business

   Added on 2020-10-05

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Unit 18: Global BusinessEnvironment
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Table of ContentsINTRODUCTION...........................................................................................................................1ACTIVITY 1....................................................................................................................................1Critical analysis of impact of key factors over business.............................................................1ACTIVITY 2....................................................................................................................................3Analysis of strategic challenges faced by Siemens.....................................................................3ACTIVITY 3....................................................................................................................................5Critical evaluation of global market influence and organisational structure and culture ofglobal business............................................................................................................................5ACTIVITY 4....................................................................................................................................8Key barriers of business in doing business internationally.........................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
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INTRODUCTIONGlobal business environment is the environment which includes businesses of differentcountries along with the influencing factors of home country effecting their decision makingprocess in order to use the resources and capabilities held by them. Siemens AG is a multinational company which manufactures electrical and electronics products in all over the world.The study will include a critical analysis of key factors' impacts over the business, a criticalanalysis of all the strategic challenges faced by the company. Further, it also includes acomparison of Siemens with other business organisation for evaluating the global marketinfluences by using McKinsey 7s model and a brief analysis of key barriers for performingbusiness operations in international business market along with recommendation for thecompany in this regard.ACTIVITY 1Critical analysis of impact of key factors over businessThere are numerous key factors which impacts the business of the Siemens such as cost,market, competition on global market, business environment, etc. they have both positive andnegative impact on the organisation. This impact over Siemnes can be effectively analysed withthe help of poerter's five forces model.Porter's five forces model:Threats of new entryA profitable market always have a threat of new entries in the market. This threatincreases when it is determining with the context of global market. This threat leads in reductionof profitability of the market along reduction of market share in the global market. Although, this threat canbe reduces by the Siemens by developing and adopting effectivestrategies in the global business of the company (Zhao, 2016). Before making such strategy,company need to analyse various factors. Managers of the company need to take decisions as perthe change in environmental factors of a country. Rapid growth in population may lead inincrease in sales of the business, as Increase in population can result in increase in demand of theproduct of the organisation. 1
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Development of business strategies accordingly may help the company in building strongplans for it through which they can prevent the business from the new entries and sustain its inthe global market for long time.Threats of substitutesLack of customer satisfaction always result in substituting the customers towards othercompany's product. Siemens always need to make frequent research over the market of theproduct. It helps it in innovating the product as per the demand of customers and develop newproducts according to the latest market trend as wel (Mathooko and Ogutu, 2015)l. It would helpin sustaining the customers with the company for long time at global level. Which willautomatically reduce the risk of substitution of customers towards other company's product. Itcould help the company in increasing its profitability in global market.Supplier's bargain powerIt shows the power of suppliers to increase the cost of raw material. Cost efficiency of theSiemens provides it a huge benefit to reduce the requirement of fund in the business. On theother hand, inefficiency in the cost can become the greatest challenge for the business operationof the company. Increase in cost directly effects the increase in selling price of product.Customer's bargain powerCustomers always have a power to bargain the price of product or services. This power ofcustomer leads in decreasing the price of the product internationality. Which directly effects theprofitability of company. Siemens can reduce this power by providing them the best quality ofproduct along with some unique features for which it can make the customers to pay any pricefor the product manufactured by it.Competition rivalryLevel of competition is always high in the global market. Due to inclusion of largenumber of electronic and electrical manufacturing companies at global level, Siemens need toface higher level of competition in the market. Further, for the purpose of its rapid growth in the international market, its managers needto develop and innovate the strategies and plans by analysing all the strategies of the competitorsin available in the market. Development of strategies in this way will lead in facing thecompetition in the market effectively. It will also help the company in its rapid growth in theinternational market.2
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