Global Business Environment: Key to Success in Cross-Border Ventures

This essay critically examines the global business environment necessary for achieving success in cross-border business activities, considering the rapid globalization of markets and technological revolution. It discusses globalization and internationalization, emphasizing the importance of in-depth business environment analysis and its application by business managers and chief executives. The essay identifies challenges such as political and legal factors, cultural differences, and economic fluctuations, while also highlighting opportunities like enhanced sales and revenues through diversified marketplaces. It underscores the significance of environmental analysis, including economic, political, demographic, socio-cultural, geographical, and technological factors, in shaping business strategies. The report concludes that international companies must develop both external and internal analyses to succeed in the foreign marketplace, leveraging strategic frameworks for cross-border activities.

STUDENT NAME
[Course title]
global business assignment
INSTITUTIONAL AFFILIATION(S)

Table of Contents
1. INTRODUCTION.....................................................................................................................2
2. PROJECT SCOPE.....................................................................................................................2
3. CHALLENGES AND OPORTUNITIES IN CROSS BORDER OPERATION’S....................2
4. ENVIRONMENTAL ANALYSIS OF GLOABL BUSINESS..................................................3
5. APPLICATION OF ENVIRONMENTAL ANALYSIS............................................................4
6. CONCLUSION.........................................................................................................................4
7. REFERENCES..........................................................................................................................5

1. INTRODUCTION
Internationalisation and globalisation of businesses consists of activities that involves
cross border dealings through exchange of products and services among diversified countries.
Globalisation along with technological revolution has become latest trend among
organisations for which international managers as well as company’s CEO’s prefer making
environmental analysis of businesses to apply them successfully in cross border activities
(Myers et al., 2007). International trade is the newest form of business operation that
influences country’s political, technological, and many other factors for which it becomes
necessary to be studied to gain knowledge about globalisation process.
2. PROJECT SCOPE
The study of globalisation and internationalisation of businesses focuses more on
opportunities and challenges faced by international companies while emerging in foreign
countries. There are many parameters involved in decision making process like foreign
exchange rates, legal systems, financial fluctuations and cultural difference. Environmental
analysis is the tool that assists managers in providing with profound knowledge necessary to
gain success in cross border activities.
3. CHALLENGES AND OPORTUNITIES IN CROSS BORDER
OPERATION’S
In globalisation process, international companies have to face many challenges.
Political and legal factors bring complexity in businesses while dealing in trades positioned in
expanded marketplace as all countries follows different set of guidelines and regulations.
Cultural difference and language barriers add to the problem which even results in
misapprehension and communicational gaps. Economy of global companies also affects
foreign trade as they may make variation in people’s living standards and product
preferences. Also, market infrastructure as well as trade policies remains a constant challenge

for global companies for which they prefer making environmental analysis before entering
any new country (Gatignon & Kimberly, n.d.).
Although there are many challenges faced by global managers, opportunities behind
internationalisation are immensely gained by knowledgeable managers and thus globalisation
is been seen increasing day by day. International companies enhance their sale and revenues
with diversified and expanded marketplace. Inflation and deflation in market rates are closely
monitored by successful companies to find appropriate opportunity out of it. Through
recognition of cultural demand and present trends, international companies attract customers
by showing response to their demands. Cross border trade even benefits government as it
brings employment opportunities in country while making use of available resources to its
extreme (Stevens, 2007).
4. ENVIRONMENTAL ANALYSIS OF GLOABL BUSINESS
Environmental analysis is extremely used by managers while operating in cross
border transactions, as stated above, it gives shape to opportunities and strengths of the
company by recognising macro forces and environmental threats. Economic factors of
diversified countries are largely responsible behind success of firms as they help in
determining investment and revenues that can be realised from those countries. Political and
legal factors during environmental analysis are given priority while making legal decisions in
companies. Every nation has their own set of principles that needs to be followed by
international companies and thus global companies has to consider following legal and
political terms according to diversified countries (Pakkanen, 2012). Demographic analysis is
also considered while making environmental analysis of global companies as they contributes
in making analysis regarding countries growth rate, population and age factors. These further
helps in determining market segmentation strategies. Socio-cultural analysis also becomes
important to find customer preferences in foreign countries. Geographical and natural
analysis like climate conditions, availability of natural resources and weather relates to global
business environment analysis that provides information to the managers for further making
marketing mix strategies. Technological revolution shows importance of making
technological analysis as enhanced technological implementation makes foreign businesses
gain competitive advantages over other companies (Gupta, 2013).

5. APPLICATION OF ENVIRONMENTAL ANALYSIS
There are many steps involved in application of environmental analysis in
international businesses like scanning of collected data, analysing company stakeholders,
finding demographic and other political and legal factors associated, prioritising issues and
challenges and lastly examining complexity and policies of competitors. Regardless many
challenges comes in the way of managers and CEO’s, environmental analysis helps them in
identifying important threats and opportunities while carrying business in international
environment. By analysing above stated factors, managers can gain utmost advantage from
environmental analysis, provided they perform analysis from broader perspectives. The
application of environmental analysis can provide businesses with tools that can assist them
in managing cross border transaction in enhanced manner (Guion, 2010).
6. CONCLUSION
The above report has identified importance of application of environmental analysis
in foreign trade. International companies must develop external as well as internal analysis of
firm to develop their business and remain successful in foreign marketplace. Therefore, it can
be said that application of environmental analysis and cross border knowledge, managers and
chief executives can gain success in business by applying strategic frameworks in cross
border activities.

7. REFERENCES
Gatignon, H. & Kimberly, J.R., n.d. Globalization and its challenges. [Online] Available at:
http://assets.cambridge.org/97805218/35718/excerpt/9780521835718_excerpt.pdf [Accessed
26 May 2018].
Guion, L.A., 2010. A 10-Step Process for Environmental Scanning. The Journal of
Extension, 48(04).
Gupta, A., 2013. Environment & PEST Analysis: An Approach to External Business
Environment. International Journal of Modern Social Sciences, 02(01), pp.34-43.
Myers, M.B., Borghesi, A. & Russo, I., 2007. Assessing the Global Environment. [Online]
Available at:
https://www.researchgate.net/publication/241145610_Assessing_the_Global_Environment
[Accessed 26 May 2018].
Pakkanen, T.-M., 2012. Internal and external analysis. [Online] Available at:
http://www.theseus.fi/bitstream/handle/10024/51954/Pakkanen_Tia-
Maria.pdf;jsessionid=D79288F5FDF980536BABD43DEFCDFA94?sequence=1 [Accessed
26 May 2018].
Stevens, W., 2007. The Risks and Opportunities from Globalisation. [Online] Available at:
http://81.47.175.201/transvisions/documents/BO_GLOBALITZACIO.pdf [Accessed 26 May
2018].