Management Report: Current Issues in Global Business Analysis

This report provides an overview of current issues in global business, focusing on Brexit and challenges in global supply chains. It begins with a brief description of each issue, analyzing Brexit's impact on the global market and the implications of supply chain disruptions. The report explores the influence of these issues on the future global business environment, highlighting structural changes, economic fragmentation, and regulatory impacts. It also examines issues in the global supply chain, such as interstate conflicts, severe weather, and government collapse. The analysis further discusses how optimizing the supply chain can reduce costs, enhance transparency, and lower risks. The report concludes by summarizing the challenges these issues pose to the global world, emphasizing the need for adaptability and strategic management in the face of evolving economic and political landscapes.

Running head: MANAGEMENT
Current Issues in Global Business
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The aim of the report is to provide an overview into the present issues in global business. The
issues chosen here is Brexit and the issues in the global supply chains. The report commences
with a brief description of each of the issue. The report also provides an insight into how the
issues impact the future global business environment. The report ends with a conclusion
mentioning the challenges to the global world.

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Table of Contents
Introduction:....................................................................................................................................3
Brexit...............................................................................................................................................4
Influence of Brexit on Future of Global Business Environment.....................................................5
Issues in Global Supply Chain.........................................................................................................6
Influence of Issues of Global Supply Chain on Future of Global Business Environment..............7
Conclusion:......................................................................................................................................9
References:....................................................................................................................................11

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Introduction:
The report aims at providing an insight into the current issues in global business.
Expansion of business on a global scale implies reaching newer customers or clients thereby
enhancing the profitability of the business. In doing so, businesses reveal themselves to
challenges and uncertainties. There is however certain guidelines available for the business
operation on global scale that must be considered while leaping into newer international
ventures. Some of the challenges faced by global business include global company structure,
foreign regulations and laws, international accounting, global pricing and cost calculation
strategy, currency rates, methods of payment, choice of the accurate methods of shipment,
cultural and communication difficulties, political risk, complexity of the supply chain and the
risks related to the labor exploitation and environment issues on a global scale. The report here
focuses on two of the challenges, Brexit and issues in the global supply chain. Brexit is an
abbreviated form of British exit that referred to the decision of United Kingdom to leave
European Union (EU) (Clarke et al. 2017). This impacted of the global market thereby reducing
the value of the British Pound to the lowest in comparison to the dollar in a matter of 30 years.
Global supply chain on the other hand refers to the distribution of the goods and services within
the global network of translational companies for minimizing the waste and maximizing the
profit (Mangan, Lalwani and Lalwani 2016). Any issues in the global supply chain are bound to
impact the international business. The report also puts forward a discussion on the influence of
Brexit and issues of the global supply chain on the international business. The report concludes
by mentioning the challenges that the issues put forward to the global world.

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Brexit
Brexit referred to the decision of United Kingdom in a referendum of June 23, 2016 to
exit European Union (EU) ( Dhingra et al. 2016). The results of the vote defied the expectations
and disturbed the global markets thereby causing the British Pound to reduce to the lowest level
against the dollar in a matter of 30 years. Ex-Prime Minister David Cameron, who initiated the
referendum and undertook campaign for Britain to be a part of the European, put up his
resignation on the following day. He was replaced by Theresa May, the home secretary who was
the prime minister and leader of Conservative party
This resulted in a newer Brexit deadline for Britain for ratifying its withdrawal agreement
until October 31(Wadsworth et al. 2016). The deal negotiated by May have faced a three time
rejection by House of Commons. The current Prime Minister gave up on winning support from
the Brexit supporters within the party and hopes in reaching a compromise with the key
opposition party. The ‘leave’ won June 2016 referendum with close to 51.9 percent votes. The
procedure of leaving European Union began in March 29, 2017 when the Article 50 of Lisbon
Treaty was triggered by May. The UK had two years from the date for negotiating into a newer
relationship with European Union.
Nevertheless in the year November 25, 2018, European Union and Britain agreed on a
Withdrawal Agreement comprising of 585 pages(Van der Loo and Blockmans 2016 ). The
agreement is basically a Brexit deal that touched upon the issues of the citizen rights, divorce bill
and Irish border. Citizen’s Rights represents one of the thorny issues facing the negotiator of
Brexit is the right of the citizens of European Union in UK and the UK citizens residing in
European Union. The Withdrawal Agreement allowed for free movement of the EU and the UK
citizens until the transition period ends (QC, R.G. and Moffatt, 2016). Financial settlement

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according to the Brexit Bill is what UK owes to Brussels following the withdrawal. The
Withdrawal Agreement mentions a specific sum that determines the financial contribution of UK
(Hantzsche, Kara and Young 2019). According to the Withdrawal Agreement the provision for
the Northern Irish Border represented a guarantee of no hard border between the Northern
Island and Ireland if the Brexit Bill does not pass in UK and EU parliament by end of transition
period (Tonge 2016).
Influence of Brexit on Future of Global Business Environment
The negotiations of UK with EU has dragged through various crucial moments whose
consensus lay in economic fallout felt more acutely in Great Britain in comparison to the
European Union. The rest of the global business economy also feels the challenges. Politcal and
the economic systems are undergoing structural changes driven by trade, change in the climate,
technology, higher level of inequality and the mounting political anger. In addressing the issues,
policymakers across the world do well by paying attention to the lessons of the Brexit experience
of UK (Cumming and Zahra 2016).
It has been found that the UK economy is experiencing a slower moving structural
change post Brexit with an evidence of fallout of foreign investment and this contribute to the
disappointing level of the overall investment( Hamilton and Webster 2018). This trend however
accentuates challenges in association with the weaker growth in productivity. There has also
been signs in which the companies with the UK based operations began triggering the
contingency plans of Brexit after a stretched period of planning and waiting. Besides, shifting
the investments outside UK, the firms also relocated their jobs.

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The process of Brexit showcased risk in connection to political and economic
fragmentation thereby providing preview of a fractured economy on a global scale with less
effective economic interactions, lesser resilience, over complex cross border financial flow and
lesser agility. Costlier self insurance will be replacing pooled insurance mechanism of the current
system. It will be increasingly harder in maintaining the global standards and the norms in
pursuing the international policy of coordination and harmonization.
The Brexit also led to the regulatory and tax arbitrage in becoming common with
economic policymaking in becoming a tool that would address the security concern at the
national level (Lavery, McDaniel . and Schmid 2018). This approach is believed to impact the
military and the existing geopolitical arrangements. Lastly, Brexit will also bring about a change
in the ways in which the countries plans in structuring the economies. In past, Britain and other
countries took pride in considering them as smaller open economies that had the capability of
leveraging the domestic advantages through maintaining efficient and shrewd links with not only
Europe but rest of the world. Thus, being relatively closed and larger economy started to look
more attractive.
Issues in Global Supply Chain
Global supply chain refers to flow of goods, finances and information amongst the
business networks in the most effective manner (Lavery, McDaniel and Schmid 2018).
Companies found that effective management of the supply chain involves cutting down cost,
reduction of waste, prevention of over production that helps in ensuring that consumers remain
increasingly satisfied with price, service and product. This thus acts as an effective tool for

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competitiveness in global marketplace. Yet there are certain issues faced by the global supply
chain which are as follows:
Presence of Interstate Conflict: Such conflicts impacts free flow of the supplies and the
raw materials to the local labor and companies within country.
Severe Weather Conditions: When nature plays a nuance in upsetting the industry laid
plans then it becomes difficult in rebuilding and rerouting (Liu and Papageorgiou 2013). From
the tsunami waves possessing the power of grounding a cargo ship or earthquake responsible for
cutting off the well-travelled routes, the transport related component of supply chain remains
vulnerable to sudden disruptions.
Collapse of the Government: The fall of the state have catastrophic and far reaching
effects on the supply chain(Gereffi 2014). As individuals or parties struggles for vacated seat of
the power, shipments of the components or goods remains vulnerable to theft, damage or the
political point of the contention in ensuing chaos.
Unemployment or Underemployed Individuals: The present shortage of the truck
driver acts as the key example of too less workers facing innumerable number of positions can
result in devastating continuity of the growth in supply chain.
Influence of Issues of Global Supply Chain on Future of Global Business Environment
It has been found that globalization has changed the manner in which the companies
viewed and used the supply chain for competing and gaining a market share. Global companies
have been managing multiples supply chains and have been counting on such operation for not
only delivering the goods on time but tailoring and responding to the divergent and the supplier

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expectations regarding packages and prices. In order to do that, operators of the supply chain
needed the capacity of personalizing the offerings of the multiple segments of customers.
Unfortunately, various businesses have been applying the outmoded technologies and
process for the operations of the global supply chain. It has been found that the existing system is
incapable of meeting the modern demands. In case a company’s needed rerouting of an inbound
shipment container then the lack of visibility into overall system can turn the simple decision of
redirecting a shipment from one port to another into problem that rippled across supply chain
thereby resulting in higher cost and reduced efficiency (Mamic 2017). With the expansion of the
organizational logistics it is compulsory to quickly overview the service and the cost implication
of each decision. This visibility is especially important during a time when most of the products
became commoditized. Pricing, brand recognition and features are no longer enough in setting a
business apart from the competitors. Differentiation in global marketplace has something to do
with the happenings of the supply chain. It is to be noted that when the market dampen payback
for the higher prices businesses must meet the profitability goals by enhancing and redesigning
the supply chain and can use the improved operations for delivering value added services
towards an increasingly sophisticate customer. Besides, the logistics leaders remained charged
with the delivery of the legacy products while supporting the production, development and
transport of the newer offerings.
However, with the optimization of the issues of the global supply chain can influence the
future of the global business environment in the following manner:
Reduction in cost: Companies that are able to easily access the information of the suppliers
makes better decisions related to procurement. Online buyer and supplier community

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management has been one of the approaches for reducing the procurement cost and the supplier
sourcing.
Enhanced transparency: Global business requires a single access point for the supplier
information and the communities of the buyer supplier. Global supply chains with transparency
in supply base and global viewpoint helps in identifying dependable suppliers across the world.
Lower Level of Risk: Optimized supply chain will allow the company in quickly assessing
the ability of the supplier in meeting legal, safety, financial, quality and environmental
expectations and regulations. The regulations however differ depending on the local and the
customer standards such that flexibility remains vital for the management of risk.
Support of Legacy and Newer Products: The global supply chain of today requires a
platform for supplier settlement along with billing partner that supports the existing products and
adapts itself for newer offerings. The platform needed in accommodating the invoicing, taxation
and the other crucial functions. It allowed the companies in reaching the international market by
accommodating the fluid and the multiple business models.
Conclusion:
On a concluding note, it can be said that post Brexit there was a rise in inflation that
recorded a five high to about 3.1 percent in the year November, 2017. Since then it however
eased to a certain extent that stood at 1.8 percent. Brexit has also led to a fall in the rate of
unemployment that stood at the lowest at about 3.9 percent. There was an increase in the annual
price of house that experienced a steady fall from 8.2 percent in the year 2016 to 0.6 percent in
the year February 2019.

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Now as far as the global supply chains are concerned it can be said that for supporting it
the global business environment is undergoing period of profound change including the
structural transformations in cross border flow of the goods and services. This has been possible
due to the process of liberalization, improved communication and the sweeping changes in the
bigger exporting economies particularly the Asia. There are however challenges faced by the
global supply chain. Trade is becoming a lesser driver of the global growth that is mostly
confronted by the resurgence of the protectionism across the major markets. Some of the other
threats included the climatic changes, decaying level of infrastructure, cyber attacks, abuses
related to human rights that requires response from both the corporations and the government.

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References:
Clarke, H.D., Goodwin, M.J., Goodwin, M. and Whiteley, P., 2017. Brexit. Cambridge
University Press.
Cumming, D.J. and Zahra, S.A., 2016. International business and entrepreneurship implications
of Brexit. British Journal of Management, 27(4), pp.687-692.
Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit on
foreign investment in the UK. BREXIT 2016, 24, p.2.
Gereffi, G., 2014. Global value chains in a post-Washington Consensus world. Review of
international political economy, 21(1), pp.9-37.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hantzsche, A., Kara, A. and Young, G., 2019. The economic effects of the UK government's
proposed Brexit deal. The World Economy, 42(1), pp.5-20.
Lavery, S., McDaniel, S. and Schmid, D., 2018. New geographies of European financial
competition? Frankfurt, Paris and the political economy of Brexit. Geoforum, 94, pp.72-81.
Liu, S. and Papageorgiou, L.G., 2013. Multiobjective optimisation of production, distribution
and capacity planning of global supply chains in the process industry. Omega, 41(2), pp.369-382.
Mamic, I., 2017. Implementing codes of conduct: How businesses manage social performance in
global supply chains. Routledge.