Global Business Environment Analysis: A Case Study of Alpha Motor Corp

This essay provides a detailed analysis of the global business environment's impact on Alpha Motor Corporation, an American electric vehicle company. It explores major cultural risks the company might face in China and Korea, such as language barriers, differing customer preferences, and varying labor laws. The essay also examines Alpha Motor Corporation's comparative and competitive advantages, including its unique product features, marketing skills, and cost-effective manufacturing in China. Furthermore, it discusses how country industrial policies, factor conditions, related and supporting industries, and internal industry rivalry contribute to the company's potential success in these markets. The conclusion emphasizes the importance of thorough analysis for companies entering foreign markets to minimize losses and maximize profits.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Major culture risk .......................................................................................................................3
Comparative and competitive advantages...................................................................................4
Country industrial policy, factor conditions, related and supporting industries and internal
industry rivalry contribute to Alpha Motor Corporation success ...............................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Global business environment refers to the environment of other countries, where different
factors impact the environment of that country and influences the decision making of the
business. To operate in foreign lands, companies should know the social environment of that
country and the culture of that company (Hamilton and Webster, 2018).
Alpha motor corporation founded in 2020 is an American auto mobile company,
headquartered at Irvine, California. The company deals in electric vehicles and aims to “Move
humanity” which means that they are moving to carbon neutral future by making electric
vehicles accessible to all. They are currently serving in the United States only.
MAIN BODY
Major culture risk
Cultural risk refers to the risk that are faced by businesses that operates in other countries
due to the difference in language, customs, norms and the preferences of the consumer. If these
cultural differences are ignored by the company the result of which may be loss in the market
share, return on investment may be low or negative, legal challenges and termination of contracts
(Morrison, 2017 ).
The cultural risks that Alpha Motor Corporation might face at China are pro employee
rights, language risks, jet leg risks, customer risks and many more. Pro employee rights may risk
the company because if any employee does anything wrong than action cannot be taken by the
company due to favourable employee rights of China. If any action is taken than company needs
to be prepared with a strong story so that they can defend at China's labour bureau.
Language risks may be faced by the company because every country has its own
language and dealing with customers, employees, suppliers and many other stakeholders of the
business has a risk associated with it. Also, preferences of the customers are different in every
country. In china consumer preference to purchase the car is from those brands who are well
established and have the brand name.
Other risk that company might face will be that understanding of local business practices
as different countries have different kinds of roads. So they need to make the vehicles according
to the requirements of the roads of china. Also they may face the risk of adapting different
management practices according to the culture of China. As, China has different work culture

compared to the United States and when the same work culture is applied in China market it
might get failed.
The cultural risks that Alpha Motor Corporation might face at Korea are that they may
face the risk of identifying new opportunities, risk of not understanding how to conduct business
there, risk of failing to determine the culture differences and failing to adjust global business
models. As the company is new, it needs to make its presence fell at Korean market early
because the auto mobile industry there is very big having its own manufacturer. So to take the
opportunity they need to cross various cultural issues like the issue of language and customer
preferences i.e. what customers prefer at Korean market (Ferraro and Briody, 2017).
Another risk company might face is language risk. Like when the company enters the
market than they need to communicate with various stakeholders like consumers, suppliers,
labours, government and many other. So to communicate with them perfectly company should
know the gestures that are important in the communication. Also, when company starts
marketing its product it should know that they are not hurting the people of Korea in terms of
culture, religion and their beliefs.
Another risk company might face is that getting employees from United States to work
there. As the employees of United States do not know the culture of Korea so they may face the
risk of getting transported back due to language barrier and due to culture barrier.
Company can deal with these risks by studying the culture environment of that area
before entering the market. This will help the company in mitigating its losses because company
will get to know what are the culture barriers that they can face while entering the China and
Korean market. Also they can come up with those products which are the need of the market and
what the people of that market prefer. They should also keep meeting with the employees who
will be working with them so as to identify what culture issues they are facing and they can rule
out a strategy for the same (Hamilton and Webster, 2018 ).
Comparative and competitive advantages
Alpha motors has the wide range of electric vehicle with unique features and designs that can
give competitive advantage to company operations. The mentioned company heavily invested in
its research and development program that succours alpha motors in beat their competitor.
Company follow very unique approach towards making its customer base. Such as, its marketing
skills, product presentation skills as well as product unique features gives their operations

competitive advantage. Company has made its brand image in USA market in a very short span
of time with its Cadillac ATS sedan and others toy car launch. Company new launch WOLF +
TM offers an unique tent structure in its car that other EV companies are lacking. Therefore,
it could help into setup the strong customer base in china and Korea. The tent loaded truck can
attract the design enthusiast customers towards using their product. Due to lower opportunity
cost the mentioned company could easily shift the target audience towards using its attractive
products.
The operation and management team of alpha motors can attracts the market by
promotional marketing tactics for its toy car products. Since the company manufacture effective
EV vehicles with extraordinary range that's only few markers is providing in the competitive
market. Hence, this could gives the given company operations an edge in its upcoming
performing market. Company wins various awards for its product like top coupé winner 2021
awards, that can enhance company marketing strategy in international market. Further, the
manufacturing cost can be an advantage for company to sell its product on low price in a new
market because alpha motors EV products manufacture in china that cost the company less.
Thus, for establishing the identity company can sell its product in a low price range in compare
to others available options in market (Luthans and Doh, 2018 ).
Alpha motors provides fast charging, battery cooler and heater as well as its products are heavy
duty that can be use in off road trip. At this moment of time very least company offer that type
of features in a EV car so it can be a opportunity for company to enhance its sale. In light to the
fact, china and Korea is developed and populated countries that offers an opportunity to grab the
new market by EV. China facing the problems of green house effects as well as pollution is the
major problem that affecting peoples life expectancy. Hence, the given company have the
advantage to successfully targeting the audience by its low immersion EV products that could
solve their issue as well as fulfils the demand of people. Therefore, its low maintenance, cost
effective, convenient products have the competitive advantage that leads to offer company at its
best (Lasserre, 2017).
Country industrial policy, factor conditions, related and supporting industries and internal
industry rivalry contribute to Alpha Motor Corporation success
Industrial policy refers to the country's policy that is made by government in order to
support those industries which can benefit the economy of that country. This policy covers two

documents which are the ideology behind the policy of the government and second is, the rules
and principles which provide guidelines in that policy.
For Alpha Motor Corporation success the industrial policy of China is in its favour
because focus of it is now on new energy and energy saving vehicles, energy equipment, high
end computerized machines and robots, aerospace, maritime equipment and high tech ships,
advanced railway transportation equipment, agriculture machines and bio pharma and high tech
medical devices. So this will benefit Alpha Motor Corporation because on their target list energy
saving vehicles is also there for which they will be providing these companies to come to China
and establish their manufacturing sector and will be providing subsidies for the same.
For Alpha Motor Corporation success the Industrial policy of Korea can contribute
because their focus has now being shift from agriculture based economy to heavy and chemical
based industries. Also they are now promoting electric vehicles in their country so that the
pollution can be decreased in their country. For that Alpha Motor Corporation needs to come up
with the products that is suitable for the market of Korea. Also, the government of Korea are
welcoming foreign companies to come and set up their business there ( Moon and Lee, 2017 ).
Factor conditions refer to capital, human resources, knowledge resources, physical
resources and infrastructure resources available in the country where company is expanding its
business. These factors are necessary for the company to compete in the market. Factor
conditions can be of great benefit to them at China because labour at China is easily available
which is both skilled and unskilled. Also the government of China is providing the foreign
companies the required infrastructure that companies needed like factory, warehouses and retail
stores to them to operate. China government is also providing foreign companies the required
capital that they need if they are coming up with new technology that could benefit the
government of China. So these factors can be very helpful to Alpha Motor Corporation to enter
at China market.
At Korea market, Alpha Motor Corporation needs to look at its factor condition before
deciding to enter that market. The company may get the required capital at that market if they are
coming up with better technology and with better features in their electric car. Also, company
can get highly skilled workforce there because world's major car manufacturing companies are of
Korea and they can get the required infrastructure according to their needs by explaining the
business plan to the government first (Law, 2017 ).

Related and supporting industries refers to support that the industries get by creating
alliances and partnership in order to excel in the nation. Alpha Motor Corporation can get the
benefit at the China market by contacting the manufacturers of the electric parts so that they can
get the parts at lower costs and their cost of making the vehicles reduces. In Korea market they
can make partnerships with existing car makers so that they can get strong support in that market
(Geramian and et.al., 2017 ).
Internal industry rivalry at China is that there are many existing companies who are into
auto mobile sector like Airways, Great Wall Motors, Aoxin, Singulato Auto, Hawtai, Kawei and
many more. There are so many competitors because China electric vehicle market is highest in
the world and there is also demand of electric vehicles in that market.
Internal industry rivalry at Korea is there as there are many already established electric
vehicles company there. They are Tesla, Hyundai, Kia and Renault. These companies have high
brand value and their products are delivered globally. So in order to compete with them Alpha
Motor Corporation needs to come up with better strategies to enter in this market and make its
presence feel in that market (Agyemang and et.al., 2019).
CONCLUSION
From the above essay, it can be concluded that companies entering into foreign market need to
do various analysis so that they can minimise their losses and make more profit. Alpha Motor
Corporation before entering into China and Korea market needs to analyse various culture risks
that they can face related to language, religion, beliefs and ideologies of the people there. Also,
the company will get various competitive and comparative advantages in both the market due to
its brand presence being already present at US market. Industrial policy and factor conditions are
in favour of both the countries. Also, there are many existing competitors in both the markets.

REFERENCES
Books and Journals
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Morrison, J., 2017. The global business environment: Challenges and responsibilities.
Bloomsbury Publishing.
Ferraro, G.P. and Briody, E.K., 2017. The cultural dimension of global business. Routledge.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Luthans, F. and Doh, J.P., 2018. International management: Culture, strategy, and behavior.
McGraw-Hill.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Moon, H.C. and Lee, Y., 2017. Global business strategy.
Law, C.M., 2017. Restructuring the global automobile industry (Vol. 4). Taylor & Francis.
Geramian, A. and et.al., 2017. Fuzzy inference system application for failure analyzing in
automobile industry. International Journal of Quality & Reliability Management.
Agyemang, M. and et.al., 2019. Drivers and barriers to circular economy implementation: an
explorative study in Pakistan’s automobile industry. Management Decision.