A Comprehensive Report on Trends in the Global Business Environment

This report provides an analysis of the trends in the global business environment, drawing insights from the article "The State of Globalization in 2019 and What It Means for Strategists" by Ghemawat and Altman. The report summarizes the article, which discusses the impact of globalization on business managers and strategic decisions, including the influence of Brexit and US trade policies. It explores key concepts such as the DHL Global Connectedness Index, international production, and the importance of R&D functions. The report addresses critical questions regarding the relationship between globalization and managerial decision-making, the implications of the DHL Index, the role of R&D, and strategies for managing vulnerability in international business. The analysis emphasizes the need for businesses to adapt to complex environments, generate profits, and utilize technology to engage with society. The report concludes with a call for collaboration between employees and managers to navigate the challenges of the global market, implement effective strategies, and ensure the success of multinational organizations.

Running head: TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
Trends in the Global Business Environment
Name of the Student
Name of the University
Author Note

1TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
Introduction
The aim of the following paper is to make the proper analysis and conduct a mini
literature review of the chosen article. The article that has been chosen for this paper is The State
of Globalization in 2019 and What It Means for Strategists. The article has been written by two
authors. The authors of this article are Steven A. Altman and Pankaj Ghemawat. It had been
published in the year 2019 (Ghemawat and Altman 2019). The date of publishing this paper was
February 6th. In order to conduct the proper mini literature review, some important things will
have to be done. At first, the proper summary of the article will have to be presented. Next some
key questions will have to found that have very close associations with the article. Some key
terms used in this article will be identified and answers to those questions will have to be given.
Summary of the chosen article
The main theme of the chosen article concerns with the globalization and its impacts on
the strategic decisions made by the business managers in the contemporary times. According to
the authors, many new things have been noticed in these times because of the impacts of
globalization (Ghemawat and Altman 2019). The two most important factors that have been
discussed in this article for the change in business are Brexit and different strategies used by US
President Donald Trump. One of terms that have been used in this article is that of DHL Global
Connectedness Index (Altman, Ghemawat and Bastian 2019). This had been invented by one of
the authors Pankaj Ghemawat. His views about globalization and its impacts on the global
businesses have been shown in this article. Thus, this article becomes a very important document
to note how increase of trade tariffs between United States and one of their biggest trade

2TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
partners. The growth of GDP is also a very important context in this paper as well. The business
managers should always have to identify and realize the main issues regarding globalization so
they can take the proper steps. Many important oissues have taken place within the business
environment that has caused it to become more complicated in the recent times. The generation
of profits has always been a huge problem for the organizations so the managers must take up the
positive role to do something regarding this (Ghemawat and Altman 2019). They must probe into
this issue with the proper ideas of trade metrics and international production. These things are
quite helpful to understand how the business managers can cope up with the severe challenges at
this juncture. The four questions that can come up regarding the contents of this article are:-
1) What is the relationship between international production, globalization and
managerial decision making in recent times?
2) What does the 2018 DHL Global Connectedness Index can say about the managing the
international challenges for organizations?
3) How can R&D functions help the organizations to set up proper business functions?
4) How can business managers deal with the vulnerability within the international
management?
Discussion
Question One
According to the authors of the article it is quite sure that the globalization has affected
the modern business organizations in a great way. The multinational companies operating in
different countries have felt the impact of this globalization in a big way. Therefore, different
perspectives of this globalization have left a huge mark in the functions of the business. The

3TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
authors have pointed out the fact that these multinational organizations have to work in different
countries amidst different challenges (Bowe, Martin and Manns 2014). Therefore, they will have
to cope up with these challenges using the skills and leadership abilities of their business
managers. The managers must be swift in making decisions with cleverness. Rather, they have to
make fast decisions so their employees do not suffer from problems. Many cultural challenges
have been faced by managers because of complex business environments. Despite these
challenges they will have to aim at generating profits (Bowe, Martin and Manns 2014). The
business operations will be greatly affected if the managers are not able to deal with the
situations or interpret the difficulties properly. Surely this will put a negative impact on the
international production of the companies. So, employees will have to learn to adjust with
complex business projects and give their best efforts to achieve the business objectives of their
organizations. The executives or top level business managers will have to learn to make the most
of the opportunities within the organization. The business competition is intensifying in the
modern times. The capital information and trade metrics will be monitored by the business
managers for a better tomorrow.
Question two
The globalization has always been on the increase and this is very much important for the
betterment of the global business scenario. The 2018 DHL Global Connectedness Index has been
very much influential in showing the effects of globalization. Some of the international trade
agreements are very crucial in determining the ways in which business organizations should
behave (Altman, Ghemawat and Bastian 2019). The question of geopolitical environment and its
effects on the management decisions is a very essential prospect for the overall success of the
organizations. There are many political and economic issues in this context that will have to be

4TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
discussed in this article. The managers of the business organizations will have to deal with this
thing as well. So, managers have the responsibility to deal with the economic complications in
this situation. In this scenario, the role of the International Monetary Fund (IMF) will have to be
assessed (Altman, Ghemawat and Bastian 2019). Therefore, organizations should always cope up
with difficult situations that arise mostly in the countries like Japan, Canada, Mexico and several
countries of Europe. There are some international trade agreements that will have to be
considered in this paper. These are the African Continental Free Trade Agreement (AfCFTA),
European Union-Japan Economic Partnership Agreement, Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP). International managers can still make their
profits though there are several challenges present. However, the business managers will have to
make sure that the supply chain initiatives should be made stronger for contingency planning of
the organization. Administrative issues will be discussed in this scenario as well (Deng and Yang
2015).
Question Three
The worldwide competition is one of the strongest points for the successful venture of the
multinational companies. The CAGE framework (Cultural, Administrative, Geographic and
Economic) should be implemented in this context so the organizations can gain the profits
despite strong competition from its rival companies. The tensions in the global trade have been
increasing and R&D functions should be implemented (Cavusgil et al. 2014). The new and
recent technologies should be used properly so this can benefits can be gained by the
international organizations. The use of these R&D functions will surely increase the
technological advantage of the companies. Therefore, managers will have to be very much
conscious when they will take the decisions about applying some special elements within their

5TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
organizations (Rothaermel, 2015). The managers might look to make some structural changes
within the organizations so their rivals can no longer compete with them in terms of their
strategies. The organizations will have to adapt to the new changes in technologies to motivate
their employees. With the help off these technologies, organizations must learn to engage with
the society in a better manner as well. The leaders should have to take up the major roles in the
society to connect with their customers through the use of technology and social media (Cavusgil
et al. 2014).
Question Four
Vulnerability has always been one of the greatest barriers for success for the international
organizations. Employees and managers should build up a good rapport so the organizations can
cater to needs of the customers effectively. Serious measures should be taken to confront with
the rivals and tough cultural changes. When some multinational organizations work within the
political divides such as US based multinational organizations operating in China, would be a
great issue (Rothaermel, 2015). To confront with this issue, they must learn to make the most of
the situations by implementing important strategies. As per the words of the authors,
organizations must learn to measure their potential strengths and utilize it for all over
betterments. Only then they will be able to win those challenges. If people cross their national
borders to find the jobs, they might face several issues within their industry. This is why
implementation of proper strategies is of great importance. The capital information about the
globalization should be assessed in this regard.

6TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
Conclusion
On the concluding note, it must be said that the employees and managers should share a
good relationship between them so they can tackle with these complex scenarios with a
collaborative effort. The managers will have to be very much cautious when they will apply
some strategies for the betterment of the organizations. The executives should take up some
strategies by which they can make these successful enough. Many complex strategies should be
implemented so issues of the multinational organizations could be resolved properly. Through
these steps, the organizations will become successful with the positive energy and farsightedness.

7TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
References and Bibliography
Altman, S., Ghemawat, P. and Bastian, P. (2019). [online] Available at:
https://www.logistics.dhl/content/dam/dhl/global/core/documents/pdf/glo-core-gci-2018-full-
study.pdf [Accessed 2 May 2019].
Andersson, U., Dasí, Á., Mudambi, R. and Pedersen, T., 2016. Technology, innovation and
knowledge: The importance of ideas and international connectivity. Journal of World
Business, 51(1), pp.153-162.
Bowe, H., Martin, K. and Manns, H., 2014. Communication across cultures: mutual
understanding in a global world. Cambridge University Press.
Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L.,
2014. International business. Pearson Australia.
Deng, P. and Yang, M., 2015. Cross-border mergers and acquisitions by emerging market firms:
A comparative investigation. International Business Review, 24(1), pp.157-172.
Derudder, B. and Witlox, F., 2016. International business travel in the global economy.
Routledge.

8TRENDS IN THE GLOBAL BUSINESS ENVIRONMENT
Ghemawat, P. and Altman, S. (2019). The State of Globalization in 2019, and What It Means for
Strategists. [online] Harvard Business Review. Available at: https://hbr.org/2019/02/the-state-of-
globalization-in-2019-and-what-it-means-for-strategists [Accessed 2 May 2019].
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Quirke, B., 2017. Making the connections: using internal communication to turn strategy into
action. Routledge.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy (p. 55). Boston: pearson.