Individual Report: Trends in the Global Business Environment - HC3031

This report provides an analysis of the trends in the global business environment, focusing on the interplay between economic fundamentals and policy threats. It examines the impact of globalization, economic nationalism, and business competition, referencing the DHL Global Connectedness Index. The report delves into the role of managerial teams, the importance of employee strength, and the improvement of organizational effectiveness within the human resource department. It explores external factors such as competition and technological changes, and discusses strategies for business leaders to achieve success in a shifting environment. The study highlights the importance of comparative advantage and adaptation through localization. The report concludes by emphasizing the significance of both internal and external factors for the success of a business, with recommendations for further research focusing on enhancing human resource effectiveness in relation to external trends. The paper is an individual report submitted by a student to Desklib, a platform providing AI-powered study tools and resources.

Trends in Global Business Environment 1
TRENDS IN GLOBAL BUSINESS ENVIRONMENT
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Trends in Global Business Environment 2
Introduction
There are various emerging trends in global business environment in the current epoch. In
this case, a business environment is both an internal and external factors that affects the normal
operations of a business. Additionally, every business is affected by both its own factors such as
workers and the external factors such as politics. Apparently, the internal environment entails the
factors that have a direct impact to the business. Just to mention, the impact should be related to
the daily activities of the organisation. Customers, suppliers and the competitors are the main
factors that revolve around an internal business environment. Also, the shareholders and
employees are considered as the internal factors of a business environment. The internal
business environment needs factor that would result to success in the business. Contrarily, as the
external business environment, the organisation has the mandate of control over the internal
factors that affects a business environment. The paper seeks to identify various trends in global
business environment as illustrated below.
Research Questions
This study will attempt to answer the following research questions:
1. What is the role of the managerial team in the implementation of the internal business
environment?
2. Do employees have any strength in an internal business environment?
3. How can the effectiveness of an organisation improved within the human resource
department?
4. Does the segments of the external business environment has target on the current
business trends?

Trends in Global Business Environment 3
Literature Review
Gomes and Romão study reveals that the role of the managerial team is essential in the
internal factor of the business environment .Organisational culture is built through the
managerial strategies (Gomes and Romão, 2017:10). In most cases, firms would provide a formal
structure with its goals and objectives. Effectiveness of communication and the values of
employees are some of the cultural implications based on management approaches.
Romero and Vernadat study explains that employee’s strength is a basic factor of an
internal business environment (Romero and Vernadat, 2016: 10). These employees must be
hardworking and talented for the sake of the success of a business. Motivated employees would
produce better results in an organisation as compared to unmotivated employees. The employees
will produce a better result. According to the study carried out by Amarasena , A., 2017. Current
trends in the international business environment. Universal Journal of Management, 5(8),
pp.381-394, is the core article for further research which states that the effectiveness of an
organisation can be improved within the human resource department. The workers are designed
to work together on the ideas and objectives. Strengths have a positive impact on the
environment whereas weakness produces harm on the business.
The outside factors can influence a business in one way or another. The strategic goal
scans also affect the organisations objective. External goals can enable other factors to achieve a
strategic plan. The external factors might include competition and technological changes within
the organisation. According to the study of Zhang, Loh and Van Thai, the segments of the
external business environment has target on the current trends (Zhang, Loh and Van Thai, 2015:
140).

Trends in Global Business Environment 4
Findings
Apparently, it has been found out that there has been a tug of war between
macroeconomic fundamentals on the current trend. Apparently, there have been predictions
about the collapse of globalization due to a wave of economic nationalism. The flat world has
dominated the global business dissertation. Basing on Philip Bastian DHL Global index, the
world ended 2017 from globalisation (Nikitina and Lapiņa, 2017: 57). However, 2018 had
brought out new obstacles that resulted from tariffs to blocked achievements. The outcome was a
change playing ground rather than ending the business competition. Smart business ideas relay
on the accurate perceptions of the business environment. The management of a business should
include a clear view of how globalization is trending. For instance, the growth across most of the
world fuelled the DHL Global Index to higher levels. In this case, trade potions increased
making people to flow across national borders (Nelson and Grayson, 2017: 50). Just to mention,
this happened last in 2007.
General
In 2018, the global trends in the business environment formulated major policies threats
which turned from rhetoric to reality. Tactfully, there was a tit for tat increase in tariffs due to the
disputes that arises from the United States and their trade partners (Gomes and Romão, 2017:10).
Countries were strict on screening foreign corporate takeovers. Immigration was clamped down
by the rules put in place to reduce free trade. Apparently, other developments begun to affect
various international flow but trade continued growing with a decline in foreign direct
investment. Market integration has been limited in absolute terms. The foreign operations of

Trends in Global Business Environment 5
multinational organisations across the globe constitutes to only 9% of the world’s output (Cullen,
2017: 235).
Discussion
The existing contrast of global flows running close to all time but still underperforms
basing on the managers expectations. There has been a difficulty in succeeding across borders
and distances but the same barriers that contain international flows have increased the rewards
for companies that strive to overcome them. They are various strategies that should be put in
place by business leaders for the sake of achieving success (Cavusgil and Knight, 2015:10). The
strategy includes how to compete, where to compete, how to organise, and how to engage better
with society. Firms with marginal competitive positions are more vulnerable when globalization
continues to stand. As the policy business factors continue to shift, a business should avoid the
temptation to respond to each kind of development. The organisation should have a sufficient
advantage over its competitors in order for the company to stay longer in the market. Apparently,
a strategic retreat might be necessary. More so, an organisation should consider whether they
need to rebalance across the time frame on the international strategies. Aggregation and arbitrage
creates value among most countries (Brătianu, 2019: 113). A company is advised to strategies
before making a decision on the kind of approach the want to settle for. The current trends of the
business environment suggest that many firms should prefer aggregation in the reliance on
arbitrage.
The United States and the Canadians had an agreement of reducing the opportunities for
arbitrage in the automotive manufacturing by reducing the labour cost per hour (Boso, Adeleye
and White, 2016: 30). The adaptation would increase the geographic reach of aggregation and

Trends in Global Business Environment 6
arbitrage. In the case, there is a reduction in the economies of scale or a decline in foreign inputs.
There will be a need of boosting adaptation through localization when the barriers to
globalization increase. However, there will be need for localization in order to increase a
comparative advantage over other competitors (Amarasena, 2017: 381). Any person with a
cautious mind will admit that comparative advantage is the most important factor that cannot be
sublimed as far as competition is concerned. Company has to consider the option of retreating
from other markets. In this context, where to compete is the most vital factor that cannot be
sublimed.
Conclusion
In conclusion, trends in the global business environment have enabled the improvement
on the performance of most organisations across the globe. The internal and external factors
should be considered for the success of a business. The most important factor to be considered in
the global business environment is competition. Competition can cause the failure of a business
at any given level. Apparently, companies must make sure that they have the comparative
advantage over other competitors in the market. Unhealthy competition has caused the failure of
most companies across the world. The internal business environment needs factor that would
result to success in the business. Therefore, as the external business environment, the
organisation has the mandate of control over the internal factors that affects a business
environment.

Trends in Global Business Environment 7
Recommendation for Further Research
It is therefore, recommended to carry on a further research on the study by Amarasena ,
A., 2017.Current trends in the international business environment. Universal Journal of
Management, 5(8), pp.381-394, which reveals that the effectiveness of an organisation can be
improved within the human resource department. In this case, the workers are designed to work
together on the ideas and objectives. Strengths have a positive impact on the environment
whereas weakness produces harm on the business. Therefore, this would answer the research
question of how the segments of the external business environment has target on the current
business trends.

Trends in Global Business Environment 8
Reference List
Amarasena, A., 2017. Current trends in the international business environment. Universal
Journal of Management, 5(8), pp.381-394. Retrieved From:
<http://www.hrpub.org/journals/article_info.php?aid=6250>
Boso, N., Adeleye, I. and White, L., 2016. Africa-to-Africa internationalization: Emerging trends
and key issues. In Africa-to-Africa internationalization (pp. 3-34). Palgrave Macmillan,
Cham.
Brătianu, C., 2019. Book review: Dima, AM (Ed.).(2018). Doing business in Europe: economic
integration processes, policies, and the business environment. Ekonomia i Prawo.
Economics and Law, 18(1), pp.111-115.
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.
Cullen, G., 2017. Educating business students about sustainability: A bibliometric review of
current trends and research needs. Journal of Business Ethics, 145(2), pp.429-439.
Gomes, J. and Romão, M., 2017. The Balanced Scorecard: Keeping Updated and Aligned with
Today´ s Business Trends. International Journal of Productivity Management and
Assessment Technologies (IJPMAT), 5(2), pp.1-15.
Nelson, J. and Grayson, D., 2017. Global trends and motivations driving the growth of corporate
responsibility coalitions. In Corporate Responsibility Coalitions (pp. 46-51). Routledge.

Trends in Global Business Environment 9
Nikitina, T. and Lapiņa, I., 2017. Overview of trends and developments in business education.
In Proceedings of the 21st World Multi-Conference on Systemics, Cybernetics and
Informatics (WMSCI 2017) (Vol. 2, pp. 56-61).
Romero, D. and Vernadat, F., 2016. Enterprise information systems state of the art: Past, present
and future trends. Computers in Industry, 79, pp.3-13.
Valentini, C., Kruckeberg, D. and Starck, K., 2016. The global society and its impact on public
relations theorizing: Reflections on major macro trends. Central European Journal of
Communication, 9(2).
Zhang, A., Loh, S. and Van Thai, V., 2015. Impacts of global manufacturing trends on port
development: the case of Hong Kong. The Asian Journal of Shipping and
Logistics, 31(1), pp.135-159.