Global Business Environment and Bayer Pharmaceutical Company Analysis

This report provides a comprehensive analysis of the business environment affecting Bayer Pharmaceutical Company. It begins with an introduction to the company, its products, and its commitment to research and development. The report then delves into the global business environment, examining economic, social, technological, political, and environmental factors and how they impact Bayer's operations. A significant portion of the report focuses on the business environment in Denmark, highlighting the country's market access, talent pool, safe business environment, flexible labor market, and regulatory framework. The report also includes a SWOT analysis of Denmark's business environment. The analysis covers various aspects of the business environment, including macro and micro economic factors, social and technological influences, political landscapes, and environmental considerations. The report also analyzes the specific challenges and opportunities Bayer faces in the global market, with a case study of its operations in Denmark.

Business environment
in global context
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Information about the Bayer pharmaceutical company...............................................................3
Business environment at global context that affects the Bayer business activity........................4
Business environment in Denmark..............................................................................................6
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business environment is the combination of different set of conditions such as social,
economic, technological and political etc. All these factors affecting the business operations
either in a positive or negative manner. Business environment in a Global context is the analysis
of business environment at regional, national and international level. They faces many challenges
which includes HR issues, financial problems and cultural or legal issues. The present report is
based on Business organizations and its environment in a global context, case study of Bayer is
taken in to consideration. It is one of the leading pharmaceutical company in Denmark. The cited
firm product and services are distinct in a nature (Smith, 2015). Management of global business
operations are a critical task across different culture and varying market requirement is both are
challenging and full of opportunities. Bayer faces many challenges such as growth of population
and varied market demand, it directly affects the wider health care services, high quality food
services along with protection by the environmental and or climate changes. Cited firm uses
analytical method is critical to solving the complex problem in order to break its in a small
element.
Information about the Bayer pharmaceutical company
Bayer offers wide range of product and services to various kind of community, it includes
human and veterinary pharmaceutical, consumer health care products, agriculture chemical and
biotechnology products helps in to develop high growth rate of crops with standard quality and
high value polymers. Bayer invest huge amount of money and resources in research and
development of new drugs and other health care products. The main aim of Bayer is to improve
quality life of patience with prolong life. Bayer mainly concentrates on to discover the active
ingredients on core areas which is Cardiovascular diseases, Oncology, Hematology,
Ophthalmology and Gynecology etc. Bayer try to become leader in an innovation areas and get
approaches to provide cancer therapy and diseases therapies in order to create social welfare in
the world (Najam, Runnalls, and Halle, 2016). Bayer corporate social responsibility is to
improve social conditions in all countries by giving donation and provides support to long term
projects according to principle of Helping people to help themselves. It plays a main role in
strengthening the position of women in a society by reducing infant morality and improving the
health of mothers. Cited firm actively participate in fighting against malaria which is transmitted
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by Anopheles mosquito in African countries. Recognized firm also working together with the
World Health Organization to fight against Chagas disease which has been widespread in Latin
America. Bayer making an important contribution in supplying of high quality food and plant
based raw material. Company main goal is to achieve and maintain leadership position in market
in the way to create value for customers, stakeholders and employees. Bayer are committed
towards addressing their own social and ethical responsibility that helps in to maintain interest of
all stakeholders and employees become more passionate about innovation and enjoy the
excellent development opportunities in Bayer (Rahdari, and Rostamy, 2015).
The word life are the acronym of Bayer Key values and leadership principles. Life stands for
Leadership, Integrity, Flexibility and efficiency about their product and services. Bayer values
are to reduce national boundaries and cultural differences by offering wide range of quality of
foods and health services.
Business environment at global context that affects the Bayer business activity
Bayer business activities are affected by the economic and social conditions in global
context.
Macro economic environment- Economic environmental factors are favorable in nature
for Bayer. It provides high growth opportunity and reduces unemployment condition. These
factors affects the entire economy no individual economy. It includes interest rates,
unemployment rate, currency exchange rates along with recession and depression.
Micro economic factors- Theses factors directly affects the business organization such as
market size, demand and supply. Distribution chain is also affected by these factors. Market
competitors, bargaining power of buyers and suppliers can affects the research and development
process of innovation of ingredients in buyers (Schaltegger, Hansen, and Lüdeke-Freund, 2016).
Social environment- Bayer is a part of society, beacuse its business activities are closely
linked with the social environment. They provides innovative products, treatment therapies and
services for the well being of society and maintain the leadership position in research and
development. Bayers evaluates the expectations and requirement of people in order to provide
impetus for the continuous development in their activities and risk management portfolio. This is
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the growing element and important for the success of their business model.
Technological factors- It provides opportunities for improvement in existing system of
hardware and software. It increases productivity and profit margin by using efficient technology
and tools for making work easier. It also exert pressure on organization to getting competitive
advantage. It provides opportunities for the potential growth of an organization. Bayer maintains
the leadership positions by innovation and accepting technological changes in order to explore
unhidden things which are beneficial for the treatement of human being and create welfare in a
community.
Political factors- Governmental activities and political affects the cross border business,
it impose restrictions for smoothing trading between the different countries organization. It
includes various types of laws, regulations, tariffs and other trade barrier. Sometimes
governmental policies supports the business organization to expand their business outside the
country for creating wealth and well being of society (Bryman, and Bell, 2015).
Environmental factors- Bayer pharmaceutical company also provides agriculture
chemicals and seeds for better growth in the crops and get effective outcomes. Disaster and
climate changes affects the company productivity due the changes in the natural environment,
that affects the human health and agricultural growth in terms of reducing productivity.
Company CSR activity helps in recover from the any climate changes by giving donation and
providing health care services to affected living being.
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Business environment in Demark
Denmark is the best location for doing a business in the world. It provides open market
policies with sustainable flexibilty for the survival in the market place and maintain the
competitive advantage among the business firm (Bryman, and Bell, 2015). It also provides larger
flow of trade and investment across the countries for maintaining potential wealth within a
country. Denmark policies and regulations creates transpanacy in following trades which
encourages entrepreneurs to expand their business in order to get competitive advantage.
Moneatry policy of Denmark is stable and it protects the rights of entrepreneurs for well
developing of their business. Government policy of Demark is too simple for establishing any
kind of business organization, because its regulatory body are simple and effective and it
provides high degree of flexibility due to any changes in environmental circumstances.
Key facts of Danish business environment
Market access- It is the most lucrative segment of Denmark, where 100 millions of
people are live. Danmark business environment provides opportunity to establish their business
according to market culture and target segment. Market market region are exist for the growth
ands expansion of business organization (Ferraro, and Brody, 2015).
Finding right talent- Denmark population are very well educated along with foreign
language skill. High propottion of people are post graduated so that they are self motivated and
have efficiency for doing any kind of work.
Safe business environment- Demark main focus is to provide safe business environment
to business organization regarding to data security and misbehaviourness by competitive
rivalries. High flexibility and safe business environment encourages the entrepreneurs in order to
establish and expand business organization. Policies and regulations supports the business
organization in order towards the growth of an organization.
Flexibility model- Denamrk provides the employment law which are flexible in nature
for hiring and firing rules of an business organization. It helps in to reduce the cost of business
operations on scale up or down. There is no statutory minimum wages but social factors plays an
important role in setting conditions for workers.
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Gateway facility for transportation- Denmark has high road and railway connectivity for
easy transportation of goods and services (Carayannis, Sindakis, and Walter, 2015). Country
also provides best infrastructure for offices and for storage facility.
Rules of law- Denmark provides trustworthy, independent and fair judicial system
throughout the economy. It strongly enforced the protection of property rights, intellectual
property rights. Level of corruption are generally are very low in Denmark, Denmark stood first
position in less corrupted countries out of 168 countries, survey by transparency international
corruption perception index.
Regulatory environment- Regulatory environment of Denmark is transparent and
efficient. Flexible and modern employment regulations and policies helps in to maintain labor
market. Monetary system of Denmark is stable so that enterprises does not faces financial crises.
Denmark also promotes the renewable energy program to save natural resources.
Open market- Trading of business is an important function of Denmark, the value of
exports and imports are equal that is maintains 100% Of GDP level (Marquis, and Raynard,
2015). The average tariff rate is 1.5% it shows that there are few barriers to foreign trade and
investment. The financial system is also a competitive and resilient.
Political factors- Denmark has stable democracy for minority government. Current
government always follows the previous government economic course of action and reforms the
economic structure in order to maintain good economic condition.
Economy- Danish company faces the financial crisis by the strong position of budget and
current account surpluses. The banking sectors and housing market are greatly affected by the
the financial crisis. Economy came to pick up at mid 2014 through this consumer confidence has
been improved with the improvement in the property market. The budget deficit within 3% limit
set by the European Union but this aim to bring closer at 2020. Gross debt is 45% of GDP.
Unemployment is fallen to 6.4%, and that time employment is increasing with 60000 jobs was
created in 2014. The balance of payment surplus was 6.2% of GDP in 2014 and is expected to
remain high in coming years. Inflation rate was 4.4% in April.
Business and human rights- Denmark political rules and regulations supports the human
activities rights, there are no major issues in business and human rights. Denmark mainly focuses
on freedom of expression, freedom of religion, indigenous peoples, children s rights and human
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rights defend ends. It provides the rights towards the safeguard of population in business life.
Business laws provides the freedom to organization trade union; all workers are to join any of
union according to their choice (Yeung, and Coe, 2015). Trade union membership is high around
70% of labor force in union of some kind.
Protective security advice- Crime levels are relatively low in Denmark it mostly trouble
free but needs to be aware about the attacks that are pick pocket and bag snatcher in crowded
areas. Makes some precaution about keeping personal valuable things that is passport and money
without it, tourist can move from one country to other country.
Intellectual property- Protection of intellectual property rights in Denmark is legislation
on patents, utility models, trademarks, collective marks, designing and semiconductor products
and copyrights.
SWOT analysis
Strength of Denmark that influence the entrepreneur
Access to knowledge and networks- Denmark have smart city with strong educational
and research environment. It provides innovation hub and cluster development with strong
network and incubation environment (Rahdari, and Rostamy, 2015). It provides future way of
life and its solution to global issues such as energy, water and food supply and effective
environment for recycling of energy. Special function within corporate finance or legal is easy
available.
Workforce and recruitment- Recruitment opportunities and flexibility in labor market
helps in loyal cooperation between management and union representative. Employees of
Denmark are holistic, value oriented, self dependent and cross functional in the work. High
quality of life and high standard on safety, health and welfare.
Infrastructure- Short communicating time and port of Aarhus is the largest container
port in Denmark it provides better transportation facility.
Market Access- 100 millions of customers are exist in Denmark that helps to get
feedback data for willingness to test and demonstrate new products and solutions.
Management and companies- International business mindset promotes for overseas
business activities. Many companies generate strong financial revenue resulting from high cost
level in some sector.
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Weaknesses of Denmark that discourages the people for establishing the business
Access to knowledge and network - Exception of few niche areas and clusters creates
low awareness in people and impact on outside Denmark (Schaltegger, Hansen, and Lüdeke-
Freund, 2016).
Workforce and recruitment- Less foreign language skills and diversified cultural
understanding that reduces the opportunities to gain competitive advantage. According to
information housing and internalization of business and job perspectives is a problem.
Infrastructure- lack of land or low frequency of connections to European hubs and with
other overseas country. Transportation problem no high speed train and any road facility for
smooth distribution channel.
City of future- Small size of city and their region makes less impact for create awareness,
Cooperation with ministers and regional administration needs to be improved for trade of
business.
Costs and administration- High cost country and city for establishing any small business
due to lack of availability of land. Small unit organization focuses on corporate service and their
support. It only provides the information about Danish only no other trade information about
other countries.
Opportunities which are provided by Denmark for well establishment of business
Access the knowledge and networks- Framing and branding of knowledge environment
in order to provide great international visibility and their impacts.
Infrastructure- New airports facility helps in to maintain frequent connections to
European hubs. Benefits from existing larger companies that attracts the suppliers, business
partners and others in value chain (Cavusgil, and Knight, 2015). Cost and administration helps in
reducing the municipal reimbursement duty on building value of business properties.
Threats reduces the number of investors and entrepreneurs
Lack of investment and low education level and research institutions reduces the number
of investors and entrepreneurs due to lack of opportunity and growth. bottleneck on some
specialists and skilled persons. Denmark business model of One hour will not be effectively
implemented. some of the entrepreneurs faces the lack of good location for establishing business
because most of the companies wants to relocate closer to large cities for easy transportation at
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low cost. Transformation of business unit from one place to other is most critical task many of
laws and regulation resist the movement of business. Uncoordinated and close activities that
creates coherence between them.
CONCLUSION
From the above report, it has been concluded that macro and micro environment has high
level of impact on the growth and success of any business firm. Bayer needs to develop policy
and framework for analyzing the market competition and scenario of international business.
Besides this it has been articulated that market structure and characteristics have high level of
impact on pricing as well as output decision of the firm (Ferraro, and Brody, 2015). Bayer firm
takes advantages from the external market opportunities in order to expand their business outside
the country. It provides health care, agricultural and biotechnology product for the well being of
society. It plays a main role in strengthening the position of women in a society by reducing
infant morality and improving the health of women. PESTEL environmental factors also makes
an important impact on the operation of Bayer. But technological factor are the key competency
for the Bayer through the technological tools this can be used in research and development and
helps in to finding out the core ingredients for diseases.
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REFERENCES
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Yeung, H.W.C. and Coe, N.M., 2015. Toward a dynamic theory of global production networks.
Economic Geography. 91(1). pp.29-58.
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antecedents to web services adoption. Communications of the IIMA. 6(1). p.14.
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Carayannis, E.G., Sindakis, S. and Walter, C., 2015. Business model innovation as lever of
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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.
Books
Ferraro, G. and Brody, E.K., 2015. Cultural Dimension of Global Business. Routledge.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Barak, M.E.M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
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Schniederjans, M.J., Schniederjans, A.M. and Schniederjans, D.G., 2015. Outsourcing and
insourcing in an international context. Routledge.
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