Impact of Global Business Environment on Firm Performance: A Report

This report examines the global business environment, focusing on the impact of social media and the opportunities presented by emerging economies. The introduction defines the global business environment and its influence on resource allocation and firm performance. The report then delves into the risks associated with global social media platforms, such as Facebook, Twitter, and Instagram, highlighting potential issues like data leakage, reputational damage, and legal and HR challenges. It also showcases how companies like British Airways leverage social media for marketing, customer engagement, and brand building. Furthermore, the report explores emerging economies as avenues for global business expansion, emphasizing their potential for growth and the characteristics that make them attractive markets. It discusses opportunities like leapfrogging technologies, computer and software advancements, and the rise of the middle class in these economies. The report concludes by summarizing the key findings and emphasizing the importance of understanding the global business environment for business success.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Rising risk global social media firms and its impact on firm......................................................3
Emerging economies are presented opportunities for global expansion for the businesses........4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Global business environment refers as an environment in multiple countries with
unfamiliar elements from local busines environment that impacts organization’s decision on
utilization of resources and capabilities. The main objective of the report is to provide
understanding about global environment of the business and it’s impact on firm performance,
operations and productivity.
Rising risk global social media firms and its impact on firm
In modern world global social media plays significant role in the busines and people life
because it acts as communication platform between people (Tolentino, 2017). It is not only
helped to lead communication among people but also become major part of marketing toolbox
for the business. Extensive application of social media has gained huge popularity among
internet users and also forces companies to follow their marketing strategy with social media.
Currently social media has empowered people and weak the brand positioning of the business by
revealing them for their fake advertisement or statement which directly negative publicity of
firm. Global social media firms are Facebook, Twitter and Instagram that permits people to
freely communicate with others and provides different ways for marketers to access and engage
with users directly (Khamis, Ang and Welling, 2017). Social media uses by billions of people
across the world and becomes one of the fast defining technologies. Facebook is one of the main
social media tools whereas billions of people spends more hours. Social media become major
digital marketing channels for the marketers from past few years because they get direct access
to communicate with users through advertisement. Apart from digital media it is offers services
to people to share their viewpoints so it is also known as word of mouth technology. From past
few years there are filed numerous cases associated with social media. The reason behind is that
most of the companies adapts social media to reach customer and influences them to buy their
products.
This global social media posses’ risks like human errors for example in this modern era
of connecting with people, in actual time then mistakes are sure to happen. Employees who
offers it’s products and services to public has extensive chances to be hacked because they trust
followers on it’s social media users and may possible trick by fraudsters. Before processing
social media requires to define and approves, access and collaborating procedures etc. are

granted by firms so there has more chance of data leakage. Currently social media becomes as
reputation threat for example most of the firm uses this platform for influencing sales revenue of
products but sometime a wrong action of the business leads negative publicity and endangered
their reputation. Legal risks like intellectual property, privacy law, ownership can face by
organization while processing it’s marketing on social media. Apart from this, HR issues like
unauthorize actions i.e. harassment, discrimination and defamation etc. are major risk that arises
by and by. However social media has given huge contribution to improve business performance
and customers’ satisfaction level. There has a great example of British Airway that uses global
social media platform to access exiting and new customers (Lin and et.al., 2020). Social media
is highly interactive platform for the people and business because they can direct communicate
with through tools like Facebook, Twitter and Instagram. With the social media British Airway
enables to aware people about it’s services and improves their engagement by offering comment,
sharing and like facilities.
With the digital marketing platform British Airway has boosted brand visibility among
potential customers, allows to access a bigger audience. Thus, organization has established
strong brand image in customer’s mind with the global social media. With the Facebook British
Airway provides own website to the customer and allows customer to direct visit with the site
regarding their queries. In addition, organization introduces customer about it’s new airline
services so that they attract and love to buy airline services. organization provides own software
facilities to the customer as well so that they can check out all holiday package and charges and
offers online booking services. Instagram and Twitter help company to access other new
customer by offering attractive discounted holiday packages. Twitter, Facebook and Instagram
etc. posses’ like, dislike, well icon and comment section etc. to the people. This facility helps
British Airway to encourage customer to keep their viewpoints regarding their experience and
others which improve customer engagement. Such kind engagement builds large customer base
for the organization and assists to generate high sales revenue on it’s airline product services
(Wu and et.al., 2017). Thus, British Airway has achieved various benefits from global social-
media platform on it’s performance, profitability and operations.

Emerging economies are presented opportunities for global expansion for the businesses
Emerging economies is a term of emerging market or developing countries that gives
more opportunities to grow global economy. There are various developing countries i.e. Nigeria,
Egypt China, Saudi Arab, India, Pakistan, Taiwan and others are known as emerging market
because these are developing countries so there have large capacity to make business more
productive and effective as compared developed countries (Meyer and Grosse, 2018). The reason
behind is that developed countries already has high growth and strong GDP rate due to high
potential brand in that situation a medium size business cannot sustain or may possible does not
get chance to become more productive. A effective emerging market opportunity allows a
business to expand it’s business activities across the world by offering high quality products and
services. emerging market gives more growth to organization in term of brand image, volume of
sale and profitability. However emerging market also posses’ several characteristics i.e. less than
average per capital income, recent and rapid growth, high market volatility, higher compare
average return for investors and others that expresses it is best emerging market for global
business expansion (Siddiqui and Singh, 2016). To select appropriate opportunity needs to
understand growth of emerging market and people attitude then they can take right decision for
their global growth objectives. it often happens that emerging market posses’ biggest challenge
for the business expansion into emerging market when marketer does not have any knowledge
about consumer’s choices and expectation. ion other word, an organization can benefit when it
has created detailed plans and products for the targeted market. To enrich itself from such kind
knowledge needs dee research of consumer habits or local users or customer available in an
organization’s desired or targeted market. There are numerous emerging economies
opportunities that are described as follows:
Leapfrogging technologies
It is one of the greatest opportunities in emerging economies because their side most of
the firm operate it’s business on the ground floor of businesses. Such as
Market for machinery: Goods are manufactured in these countries are quite nominal or smaller as
compared the product of developed countries. This is the main reason that keeps them one step
backward in developed countries. In that situation MNC’s has opportunity to build large
customer base by offering high quality product in less developed countries as well as improves

people living standard. For example, Tesco has opened it’s franchises in multiple emerging
countries and offers high quality products and services like developed countries products and in
return generate high revenue (Felix, Rauschnabel and Hinsch, 2017). These emerging market
helps Tesco to expand it’s business in global market effectively.
Computer and software technology: Most of the businesses has benefited of the high education
rate and low-cost of living in the emerging markets. These countries have less performance of
technology as compared developed countries so developing countries customers always looks for
advanced technological products. So, it becomes easier for the MNC’s to recruit highly talented
expertise at affordable price. Thus, companies enable to generate high revenue and global
expansion as well with the support of top-level expertise.
Growing the middle class
Emerging market is actual great market whereas a middle class are emerging. There have
created extensive job and opportunities for the people so that they can move from poverty to
comfort zone whereas they can afford luxury products and services which are prior
unimaginable. MNC’s or medium scale size business can expand it’s business into these
emerging market easily and can build strong base of customers by offering affordable price
products and services (Grover Goswami, Medvedev and Olafsen, 2019). For example, British
Airway has expanded it’s business into several emerging markets like South Africa, Europe,
German, Denmark and others and targets middle class audience as targeted customers. These
markets have supported organization to build strong image by generating high profit margin on
airline ticket and flight services. With the emerging market opportunity British Airway has
achieved positive publicity in people and popularize as second largest airline in UK.
From the above discussion it can be interpreted that emerging economies gives extensive
opportunities to the business to globally expand it’s business effectively.
CONCLUSION
The brief report provided understanding about global social media impact on business’s
performance, reputation and it’s volume of sales. This report can be concluded emerging
economies has represented opportunities for global expansion for the businesses.

REFERENCES
Books and Journals
Khamis, S., Ang, L. and Welling, R., 2017. Self-branding,‘micro-celebrity’and the rise of Social
Media Influencers. Celebrity studies, 8(2), pp.191-208.
Lin, W.L and et.al., 2020. The adoption of technological innovations in a B2B context and its
impact on firm performance: An ethical leadership perspective. Industrial Marketing
Management.
Wu, K.J and et.al., 2017. Toward sustainability: using big data to explore the decisive attributes
of supply chain risks and uncertainties. Journal of Cleaner Production, 142, pp.663-
676.
Siddiqui, S. and Singh, T., 2016. Social media its impact with positive and negative
aspects. International Journal of Computer Applications Technology and
Research, 5(2), pp.71-75.
Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media marketing:
A holistic framework. Journal of Business Research, 70, pp.118-126.
Grover Goswami, A., Medvedev, D. and Olafsen, E., 2019. High-growth firms: Facts, fiction,
and policy options for emerging economies. The World Bank.
Meyer, K.E. and Grosse, R., 2018. Introduction to managing in emerging markets. Oxford
handbook of managing in emerging markets, pp.3-34.
Tolentino, P.E., 2017. Technological innovation and emerging economy multinationals: the
product cycle model revisited. International Journal of Technology Management, 74(1-
4), pp.122-139.