Business Organization and Global Market Expansion - Report

This report provides a comprehensive analysis of business organizations operating in the global market, using One Production Limited as a case study. It examines the company's expansion into the Italian banking sector, comparing its operations in the telecommunications and mass media industries with those of the financial sector. The report delves into the responsibilities and strategies of global organizations, including localization, transnational, and international strategies. It also explores the impact of national economies, government influence, and global integration on business activities, including the effect of supply and demand, income levels, and political factors. Furthermore, the report includes a PESTEL analysis of Malta, providing insights into the country's business environment and strategic approaches. The report concludes with a discussion on the challenges and opportunities associated with global market expansion.

Business Organization

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Comparison of organisations of different sector and industry....................................................3
Responsibilities of global organisation.......................................................................................5
Strategies followed by global organisations...............................................................................5
TASK 2............................................................................................................................................6
Impact of national economy on organisation .............................................................................6
Measures taken by the government to influence the activities of business organisations..........7
TASK 3............................................................................................................................................8
3.1 Impact of Global Integration on Business Organization.......................................................8
3.2 Assessment of The Impact of The International Trade on Domestic Products And Services
...................................................................................................................................................10
3.3 The Impact of Global Economy on Business......................................................................10
3.4 Facilitation of ICT Technologies to Globalization.............................................................11
TASK 4..........................................................................................................................................12
PESTEL Analysis of Malta.......................................................................................................12
Strategies used in the country ..................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business organization refers to the entity in which group of people come and work
together to achieve a specific objective. Business can be operating at national or international
(global) level. Global business organization refers to international trade where company is doing
its business activities across the world. Global business help organization to expand its business
which help them to increase their market share, reduce costs and gain competitive advantages
over its competitors. One Production Limited is a Mass media and telecommunications company
which is headquartered in Marsa, Malta. It is established by Labour party. It provides various
services such as television station One, radio service one radio, DAB+ radio service KISS and
mobile virtual network operator Redtouch Fone. This company is successful in Malta and
thinking about expand its business by entering into banking sector by opening new bank One
Commercial Bank in Italy. Report will highlight on the different working style of global
organizations in different sectors and industries with their responsibilities and strategies. Report
will also explain the impact of economy and government on the business organizations. Report
will also discuss the impact of global factors on the business organizations. Report will also tell
about the issues which impact the business activities at global level.
TASK 1
One Production Limited is Malta based company offering services related to radio &
television such as television station one, DAB radio and launch mobile phones. Thus, company
is operating telecommunication & mass media industry and it is a national company. Now, One
Production Limited is entering in to global market by establishing its business in Italy and firm is
operating its business in new industry which is Finance. Thus, company is opening its own bank
in Italy named as One Commercial Bank(CHERNOV and CHERNOVA, 2017).
Comparison of organisations of different sector and industry
One Production Limited now offering its services in two different sectors & industries
and there is difference between operations of these two. Before firm is operating in private
sectors now its is in public sector and difference of these two sectors are discussed below-
Basis Private Sector Public Sector
Definition One Production Limited is a
private sector company which
One Commercial Bank is
owned and controlled by

is owned & controlled by
individuals.
government like state &
central government. Thus, this
firm is operating under public
sector.
Areas This sector operates in various
areas such
Telecommunication, Mass
communication, Technology,
Construction and Education.
This sectors offer its services
in different areas like banking,
education, agriculture,
insurance and electricity.
Benefits High wages & salary and
provide better working
environment.
Retirement benefits, Job
security and also provide
benefits of perquisites.
Objective Main objective of this type of
organisations is profit
maximisation.
Objective is to protect interest
of public.
There is also a difference between services provided by companies working in different
industries. One Production Limited is operating in telecommunication and mass communication
sector and objective of this sector is facilitating effective communication in global market with
the help of internet, airwaves and cables. Organisations operating in this sector includes wireless
operators, cable companies and internet service operators.
On the other hand, Banking Sectors provides financial services to its customer and it also
provides advice to its customers related to investment. This sector also contributes to economy
by creating wealth. Banking sector helps Citizens of Italy by fulfilling their demand on time. It
also manages financial assets and provides liquidity which directly helps in maintaining financial
stability.
Thus, there is difference between operations, offerings and objectives of both sectors.

Responsibilities of global organisation
Organizations offering its services in global market faces various responsibilities because
these organisations have to follow rules, regulations and policies of all countries in which it is
operating. For Example, if One Production Limited is introducing its business in Italy for
expanding its business in international market than it is responsible for adapting all the policies
and guidelines given by government of Italy. Further, firm is also responsible for following
Policies and provisions of Banking Regulation Act of Italy.
For establishing business in to international market and new industry One Production
Limited has to collect detailed information about products & services which can be provided in
Italy. Global Organisation is responsible for setting up objectives and goals which can be applied
and accepted by all countries. This organisation is also responsible for analysing & evaluating
market trends of all the countries in which they are operating (Khorshidi and Etehady, 2015).
Strategies followed by global organisations
For entering into global market One Production Limited has to follow various strategies
these strategies are important for achieving objectives related to expansion of business. Different
type of strategies used global organisations are discussed below-
Localization Strategies- A strategy used by organisations for launching new product,
service and app in a new market. In this strategy company introduce a new product according to
preference & behaviour of its customers and culture of different country. This strategy is
beneficial for One Production Limited to expand its business in global market because it attracts
customers as products are delivered according to the demand and needs of customers of that area.
This strategy further helps firm in maximising its customer base which in turn leads to
maximisation of profitability and performance of firm. Localisation strategy also enhances
market share of company across the globe. In this strategy all the challenges and problems
related to handling localization problem is handled by software which facilitate smooth
functioning of business.
For improving its business in Italy One Commercial Bank has to hire local people as its
employees which helps company in resolving queries of its customers and also beneficial in
dealing with its customers (Doh, Luthans and Slocum, 2016).

According to this strategy for expanding business in global market, Global SEO it to be
used through which company will decide target audience in this report One Production limited
set target on population of Italy.
Translational Strategies- According to these strategies companies does export & import
of its goods & services for expanding its rich in global market. Organisation export & import its
goods & services according to demand & supply received from other countries. This strategy is
beneficial as it requires less investment because firms does not need to invest money in
purchasing of assets and properties in other countries.
Transnational Strategy is most important as it maximises profits by reducing unnecessary
cost. It also enables companies in operating its business in global market at one place.
Advantage of this strategy is it is used by many organisations which creates competition
and reduces profits. Further, this strategy is beneficial for companies which includes many
products & services in its portfolio. Thus, this strategy is also beneficial for One Production
Limited for enhancing its offerings in International market.
International Strategies- An Approach used by organisations by following guidelines
and plans given for conducting commercial transaction among companies situated in different
geographical areas. These strategies and plans are developed by companies itself in accordance
with their objectives. Thus, it helps in achieving profits and market share in less time.
This strategy requires low cost and it also reduces political risk as companies following
this strategy does not need to follow governmental policy if each country. Disadvantage of this
strategy is if organisation enters into wrong market than it effect profits and brand image of
firms. For expansion of business of One Production Limited in global market it can alos apply
this strategy(Laudon and Traver, 2016).
TASK 2
Impact of national economy on organisation
National Economy gives detailed information about goods & services produce and
consumed in a country. It also gives details related to income, demand & supply, purchasing
power, GDP, Inflation, Taxation Policy and exchange rate of all countries. All these economic

factors have an impact on performance of business. Economic influence on business organisation
are discussed below-
Political Influence- Policies and guidelines provided by government of country affects
business of companies as they have to offer their products & services in accordance with those
guidelines. They also control monetary policy by reducing interest rate which helps business in
facilitating liquidity. One Production limited also need to follow all the guidelines provided by
government of Malta and adapt changes made in those guidelines time to time. Further, for
expanding company’s business in global market it is required to follow policies formed by
government of Italy as it is now entering in that market (Hamilton and Webster, 2018).
Political factors also include taxation policy, budget and exchange rate decided by
government of countries which affects profits and growth of firm in global market.
Supply & Demand- Supply & Demand of goods & services by customers affects volume
of production of company. If demand of products & services is high and company is able to
supply expected quantity to customers than it enhances profitability, customer base and market
share. In case of new business incorporated by company which is One Commercial Bank if there
is balance between deposits and borrowings than bank is able to generate revenue. Thus, both
these economic factors also affect operations of business.
Income Level- If income level of citizen of country is high than the made deposits in
bank which enhances value of assets of bank and this affect operation of banks, Further, if
purchasing power of individuals are high than this leads to increase in demand and supply of
goods & services which further maximises profits and customer base (Salvatore, 2015).
Measures taken by the government to influence the activities of business organisations
Government influences the activities of the business as government is organizing the
various activities for business such as organizing the training and development, seminars etc. for
the business. As they influence the business that if the employees are participated in such
activities then it will be beneficial for the company as the company can achieve more success in
the future. As is they are more involved in the outside business organisation that will help in
building the relationship with the outsiders. If the relation of the employees is good with the
outside parties then it will help in the company's operation and growth is also there (Jenkins and
Williamson, 2015).

They said that if the employee is engaged with the activities of the government that will
also help in the future for their promotion or transfer in the company or there may be chances of
getting the government job. It will influence the working of the company as well. As government
is also organizing the campaign to advertise the company's product that will benefit the company
as its sales is increase from it. As more and more employee is involved in the events organize by
the government enhance their productivity and motivation of doing work. Through this company
will get benefit from it and the employee engagement is also increased in the company. While
participating in the government activities also improve the communication skills of the
employees as they have interaction with other people from different countries who are coming to
participate in the events organized by it (Pereira, 2017). As new people are meeting and through
this idea are also exchanging that will help in the growth of the business.
As through these activities employees are also not getting bored while doing work so
government influence them that their efficiency will increase if they are participating in these
program mes (Jansen, 2017). Employee interaction is increasing as they meet the new people
with different background that will help for the company as employees get motivation from the
other people. Government organizes free champs for the employees of the company for their
medical check-up that will benefit them as they are getting free facilities. Government always
tries to influence the people of the business that these activities builds relation, improve
communication and there is lot of improvement in the employees that has a good impact on its
work (Erasmus, Strydom and Rudansky-Kloppers, 2016).
Government also provide training and development program for the employees of the
business. The training and development program helps in growing the employees as there is
enhancement in their skills and they are more efficient to do the work. Through this their skills
are improved and they are doing better work for the company. This helps in enhancement of the
employees as well of the company. The growth will increase that will lead to earn more profit
for the company. Hence, the government is taking these measures to influence the employees of
the business to participate in these programmes (Singh, and Kushwaha, 2017).x
TASK 3
3.1 Impact of Global Integration on Business Organization
There are various factors which can impact the One Commercial Bank. These factors are
as follows -

Social Factors
If a company expand its business in another country so it is needed for the company to
get support from another country's citizens. For that they do study of their cultural and social
factors. Accordingly provide services to their customers at reasonable price. Ignorance of social
factors can impact the business and its activities.
Legal Factors
Legal factors also impact the operations of the global business. Countries' rules,
regulations, laws and guidelines are different, which can impact the global business. For the
successful expansion in another business, company should follow the laws and regulations and
complete the legal requirements of the country for the opening of business (Latukha, 2015).
Political Factors
Change in government and its policies impact the global business. Political factors can
affect the foreign investment policy of country. Thus, company should look at the political
conditions of the nation and also look at the current government's view on the global business. If
foreign investment policy is tight, company may face a lot of difficulties which can impact the
business activities. If foreign investment policy is easy, company can easily expand in that nation
and earn profits by getting support from government.
Technological Factors
These factors affect business because they provide access to adopt new innovations. This
helps business to reduce the costs and develop new products for the another country's population.
With the help of communication technologies, company gained exceptional speed in the business
activities. A large amount of information can be safely shared through the technology which help
business to reduce cost and improve the efficiency. Thus, global Organization need to consider
the technological progress for their business and make themselves competitive at global level
(Hamilton and Webster, 2018).
Economy Factors
There are various factors that impact the global economy. Global economy keep changes.
Due to these fluctuations, company's profitability gets impact. If there is rise in per capita
income, this would lead to increase in demand of products which increase the supply of products
from business. This would increase their profitability and enhance their goodwill in global level.

3.2 Assessment of The Impact of The International Trade on Domestic Products And Services
The positive and negative impact of International trade on domestic products and services
are as follows -
POSITIVE IMPACT
Availability of Products and Services
Due to international trade, there are so many varieties of products and services which is
available at good quality in domestic market which can fulfil the needs and wants of customers.
These products and services make customers comfortable and improve their living standards.
More Investment
Due to international trade, more investments are done in domestic market which bring
more innovation and more technological advancement in the domestic products and services
which can attract the customers and fulfil their needs in efficient way and gain competitive
advantages over domestic companies.
More Competition
Along with more products and services in domestic market, international trade bring
more competition in domestic market which lead to decreasing in price of domestic products and
services which attract more customers (Neelankavil, 2015).
NEGATIVE IMPACT
Competition
Along with more products and services in domestic market, international trade brings
more cut-throat competition in domestic market which help in reduce in the production of
domestic products and services. This cause to the decreasing in the contribution of domestic
market, products and services.
Low Demand of Domestic products and services
Due to international trade, foreign company's products and services are available to the
customers at reasonable price with good quality which lead them to demand for those products
and services. That's the reason, demand for products and services are decreasing (Hovhannisyan
and Keller, 2015).
3.3 The Impact of Global Economy on Business
There are various factors in global economy which can impact the business. These factors
are as follows -

Unemployment Rate
If unemployment rate is high in global economy which means people are not earning
income which can impact the activities of bank. Because the main objective of bank is to keep
people's earning safe. Thus, it is difficult for the company to open bank in such country where
achievement of objectives are difficult tasks.
Interest Rate
If there is high interest rate in global economy, it can be create difficult for the bank to
open its business because high interest rate means on the time of repayment, company need to
pay more interest which lead company to bear more costs. Also, if interest rate is high, company
also keep their interest rate high which can impact the borrowing level of customers.
Exchange Rate
Due to fluctuations in economy, there are fluctuations in exchange rate which impact the
business. Higher the exchange rate, higher the price of products which lead company to bear lose
due to low production costs. This make company to face difficulties in sustain its business in
competitive global environment. Also, exchange rate has affected the trade surplus or deficit,
which in turn affects the exchange rate of the country.
Tariffs
Tariffs increase the prices of imported goods by company. Because of this, domestic
producers are not able to reduce the services' prices from increased competition and consumers
have to pay higher prices which lead business' goodwill down. It also reduces the efficiency of
the business because of not able to survive the competition.
Global Economic Crisis
The global economic crisis affects the businesses as business is unable to match with the
growth rate of the countries in which they are running their business (Hutzschenreuter,
Kleindienst and Lange, 2016).
3.4 Facilitation of ICT Technologies to Globalization
Information Communication Technology (ICT) is basically an electronic based system of
information transmission, reception, processing and retrieval, which has positively and
negatively changed the way the business thinks and works.
The facilitation of ICT (Information and Communication Technology) on globalization
can be clearly understood by the fact that it has recently made innovation in new products and

processes of business. Communication between different businesses make them interrelated and
interdependent on each other which is beneficial for the globally economic growth. Due to ICT
technology, Governments from various countries, in spite of its different and complex political
nature, difficulties and orientation, act as a facility, which enables businesses and consumers to
adapt to the demands and opportunities of the new economy. With the help of ICT, Globalization
has spawned new markets and information technology is one of the new market-leading
technologies in this increasingly competitive environment. Technology helps business to
overcome with major barriers such as international trade, lack of general ethical international
standards, transportation costs and delay in information exchange, which is changing the market
place and create new opportunities for business. ICT plays an important role in the capacity of
organizations to adopt, use, optimize and implement relevant information. Due to the ability to
transfer and facilitate the acquisition of knowledge, company is being able to create a foundation
for post-industrial equipment and knowledge economy, which make company sustain for longer
time.
With the help of ICT companies has many benefits, which include the following -
An increased scale and scope of activities and procedures, cost and risk sharing between various
countries, strong ability to deal with complexity and competition and greater flexibility,
efficiency and speed in organisational activities (Vernon, 2017).
TASK 4
PESTEL Analysis of Malta
PESTEL analysis is a tool that is used to analyze the external factors of the environment
that affect the business operations.
Political Factors
These are the factors that helps in determining the influence of government on the
industry. It includes tax policies, fiscal policies, political stability, foreign trade policy,
corruption and trade restrictions. As because of the political instability in the country it will
affect the working of the banking sector. If there are trade restrictions in the country, then it will
difficult to do foreign trade as there is no exchange of money in the country.
Economic Factors
These factors affect the performance of the economy. It includes economic growth,
exchange rate, interest rate etc. (Kuzma and et. al., 2016). It affects the economic growth of the

industry. As if the prices are high in the economy there is a period of recession in the country
that lead to less cash flow in the economy.
Social Factors
This factor represents the norms, customs and values of the country. This includes the age
distribution, income distribution, attitude, lifestyle etc. These factors affect the lifestyle of the
industry. As in some industry there are differences in the age distribution so it will affect the
presence of industry in the global market (Davies, 2016).
Technological Factors
These factors are related to the technological changes in the industry. It includes
innovation, automation, research and development etc. Changes in the technology may affect the
working as the technology that is being used may become obsolete.
Environmental Factors
These factors are related to the climate change, weather etc. As different countries is
having different climatic condition that can affect the business operation.
Legal Factors
These include the laws such as discrimination laws, employment laws, consumer
protection laws, copyright etc. As different countries are having different laws so if the new
industry is set up in the global market laws and regulations of that country is to be followed
(Hirschmeier and Yui, 2018).
Strategies used in the country
Political factor affect the working condition of the company when there is instability in
the country.So because of the instability in the country the company have to made strategies to
low down the instability in the country. As trade restrictions are also there in the country that will
affect the economy as well as the foreign trade in the country. Companies have to make the
strategy so that the companies working is not affected by it. A proper strategy is to made to
resolve all the issues that are occurred while doing business in the global market. As sometimes
weather also affect the company's operation (Brown, 2018). For changing the technology in the
market the company also have to adopt the innovation so that it can be able to meet the
technological changes as per the country's technology. Marketing strategy is to be followed by
the company so that it will not affect the working.

CONCLUSION
This report outlined a comparison of organisations operating with in different sectors and
industry. Further, this report summaries responsibilities of companies operating their business in
global market. Furthermore, this report concludes different types of strategies used by firms for
expansion of business in global market. Moreover, this report outlined impact of economic
factors on business of companies. Further, this report summarise different strategies followed by
government for influencing activities of business. Furthermore, this report outlined
implementation of global segregation on companies. Moreover, this report concludes impact of
global trade on organisation. Further, this report outlined effect of global economy on firms.
Further, this report summarise facilities provided by ICT to globalisation. At last, this report
concluded strategies affecting business activities.

REFERENCES
Books and Journals
Brown, R.A., 2018. Chinese business enterprise in Asia. Routledge.
CHERNOV, A. and CHERNOVA, V., 2017. CROSS-CULTURAL COMPETENCE AS A KEY
SUCCESS FACROR IN GLOBAL ECONOMY. In Academic International Conference
on Business, Economics and Management (p. 16).
Davies, P.W., 2016. Current issues in business ethics. Routledge.
Doh, J.P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business: Introduction
to the special issue.
Erasmus, B., Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business
management. Oxford University Press Southern Africa.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hirschmeier, J. and Yui, T., 2018. The development of Japanese business, 1600-1980.
Routledge.
Hovhannisyan, N. and Keller, W., 2015. International business travel: an engine of
innovation?. Journal of Economic Growth. 20(1). pp.75-104.
Hutzschenreuter, T., Kleindienst, I. and Lange, S., 2016. The concept of distance in international
business research: A review and research agenda. International Journal of Management
Reviews. 18(2). pp.160-179.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Khorshidi, S.A. and Etehady, M., 2015. Green Marketing: A System Dynamics Approach.
Latukha, M., 2015. Talent management in Russian companies: domestic challenges and
international experience. The International Journal of Human Resource
Management. 26(8). pp.1051-1075.
Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.
Neelankavil, J.P., 2015. International business research. Routledge.
Pereira, V. ed., 2017. National Business Systems in Asian Countries: Impact on Human
Resource Management, Employment Relations Practices and Organisation
Behaviour(Vol. 13). Emerald Publishing.
Salvatore, D., 2015. Managerial economics in a global economy. OUP Catalogue.
Vernon, R., 2017. International investment and international trade in the product cycle.
In International Business (pp. 99-116). Routledge.
Online
Global Strategies, 2016. [Online] Available through : <http://www.global-strategy.net/what-is-
global-strategy/>