Business Development Strategies in a Dynamic Global Environment

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CONTEXT OF BUSINESS
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Table of Contents
INTRODUCTION..............................................................................................................3
LO 1................................................................................................................................. 4
Dynamic Environment...................................................................................................4
Future of Organizations................................................................................................ 5
LO 2................................................................................................................................. 6
Corporate and Social Responsibility and Business Ethics............................................6
Environmental And Other Socio-Economic factors.......................................................6
Effect of CSR on Leadership........................................................................................ 7
CONCLUSION................................................................................................................. 8
References.......................................................................................................................9
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INTRODUCTION
The word globalization is generally referred to for indicating the dissemination,
escalation and congruence of technologies, communication and manufacturing over the
globe. This has resulted in the unification of the cultural and economic factors, while at
the same time allowing the distribution of ideas, innovation and practices. The dynamic
scenario of the business environment has forced the leading organizations to focus on
sustainability and focus on growth prospects simultaneously. The report discusses the
implementation of business ethics to the functions of management and various socio-
economic and cultural issues on the road to practising CSR in the global business
environment. The impact on the leadership approach is also analyzed.
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LO 1
Dynamic Environment
Business ambience is continuously changing across the world. The countries and their
business contexts are differentiated based on a number of factors such as per capita
income, literacy ratio etc. It is more than often that the nations categorized as
developing markets have distinct economic needs and social interests in business
activities. The developing nations are usually accounted for a relatively lower level of
social, economic, commercial and technological progress. On the other hand,
developed countries and some of the developing countries are associated with rich
natural resources are in better economic condition and encourage local business and
economic development (Prange and Verdier, 2011).
The liberalization policies of national governments have opened new windows of
opportunities for foreign firms regarding profitable business prospects. The advantages
which have been evident with the dynamic evolution of business is the shift of the
organization's policy from product centric to user-centric. The main focus is to provide
maximum facilities or services to achieve customer satisfaction. A good example which
can be considered with the current reference is the use of GPS services by every
service company. Whether it is transportation business, food delivery or e-commerce,
use of online navigation systems has made it possible to decrease the lead time and
increase the efficiency of the channel. With satellite and information technology entering
into every sector of business, there are an enormous amount of opportunities for
business entities if the organization's management is alert enough to adapt and realign
the operations in according to with global market conditions (Orlitzky et al. 2011).
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Future of Organizations
The organizational change for a business is no longer an option with respect to the
scale at which market conditions are rapidly developing. Continuous modifications of
strategies and adding value to the organization by investing in profitable activities is the
only way to ensure sustainability among competitors. Through the exploitation of the
use of internet clubbed with artificial intelligence, multinational corporations have been
successful in determining the concurrent international expenditure patterns by
consumers of different segments which are contributing towards redesigning of
portfolios and brand restructuring to formulate an impeccable brand strategy. Thus if the
market conditions are changing so is the technology. The proper utilization of these has
benefited the companies to maintain top positions in markets ( Strand, 2011).
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LO 2
Corporate and Social Responsibility and Business Ethics
The concept of delegation of responsibilities to the organization above the purposes of
building financial gains towards the betterment of society has raised the concept of
corporate social responsibility. The core idea revolving around the concept is that
business entities bear a moral as well as social responsibility in addition to the usual
economic target of providing value to the shareholders. Thus, ethics create a set of
codes to check what is good or harmful in the company's conduct and aid in the process
of decision making (Tidd and Bessant, 2018).
The needs for implementing CSR can be understood by considering the innumerous
advantages it gives to the organizational performance. The successful application can
help in minimizing corruption, overuse of labour; in the promotion of reputation,
branding; optimizing the human resources and legislation standards (Mujtaba and
Cavico, 2013).
Environmental And Other Socio-Economic factors
The cultural, as well as social elements of a region or environment, play an essential
role as these elements can have direct/indirect impacts on the functioning of the
company. For instance, shifting of retirement age has a social reason behind it but
effects any organization at a large scale. Cultural elements can have significance In the
policy formulation in the local operational markets (Schaltegger and Wagner, 2017).
The health of the economy and efficiency of business have interdependency to each
other. It banks on the economy for a large portion of its production inputs and at the
same time trades its services or products in the same market conditions. Further, the
local community or public is largely benefited as companies help to address the issue of
development through their share of GDP (Bock et al. 2012).
The ecological and physical environmental conditions such as topographical
parameters, climatic conditions, and geographical demography also affect the nature of
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the businesses and forms as one of the important macro environment requirements of
the business.
Effect of CSR on Leadership
The volatility of the market scenario has forced decisive changes in the approaches
towards which the leadership is followed in the organization. The increased popularity,
as well as the necessity of CSR, has forced the leaders and the managers to revise
their strategies, redefine their business models, promote disruptive innovation and lead
with a clear mindset of the market conditions. With this scenario, transformational and
ethical style of leadership is found to be most preferable for achieving the CSR ( Zu et
al. 2014). The role of the leader with respect to the above-mentioned leadership style is
illustrated in the following figure.
Major benefits from these styles are the encouragement of creative and innovative
inputs which aim at the social development and achieving the purpose of corporate and
social responsibility.
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CONCLUSION
Different growing and developing traits of business is discussed in the essay. Due
consideration is given to the changing functions of the organization at a global and
regional level. The subsequent effects on the business' future landscape and
responsibilities are analyzed with the increased liberalization and globalization of the
economies. Further extensive study is done on the need for corporate social
responsibilities analyzing its advantages and benefits. Moreover, various factors such
as socio-economic, environmental and cultural are considered and their impact on the
business ethics of the organization is investigated. The consequences of the dynamic
conditions of the business environment to the leadership style of the organization are
examined in the essay.
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References
1. Bock, A.J., Opsahl, T., George, G. and Gann, D.M., 2012. The effects of culture
and structure on strategic flexibility during business model innovation. Journal of
Management Studies, 49(2), pp.279-305.
2. Making an impact through CSR. Speller M, August 2014. Retrieved from:
https://eiuperspectives.economist.com/sustainability/making-impact-through-csr.
Last Accessed on 19 May 2019.
3. Market Dynamics. Banton C 2019. Retrieved From:
https://www.investopedia.com/terms/m/market-dynamics.asp. Last Accessed on
18 May 2019.
4. Mujtaba, B.G. and Cavico, F.J., 2013. Corporate social responsibility and
sustainability model for global firms. Journal of Leadership, Accountability and
Ethics, 10(1), pp.58-75.
5. Orlitzky, M., Siegel, D.S. and Waldman, D.A., 2011. Strategic corporate social
responsibility and environmental sustainability. Business & Society, 50(1), pp.6-
27.
6. Prange, C. and Verdier, S., 2011. Dynamic capabilities, internationalization
processes and performance. Journal of World Business, 46(1), pp.126-133.
7. Schaltegger, S. and Wagner, M., 2017. Managing the business case for
sustainability: The integration of social, environmental and economic
performance. Routledge.
8. Strand, R., 2011. Exploring the role of leadership in corporate social
responsibility: A review. Journal of Leadership, Accountability, and Ethics, 8(4),
pp.84-96.
9. Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological,
market and organizational change. John Wiley & Sons.
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10. Zhu, Y., Sun, L.Y. and Leung, A.S., 2014. Corporate social responsibility, firm
reputation, and firm performance: The role of ethical leadership. Asia Pacific
Journal of Management, 31(4), pp.925-947.
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