Global Business Report: Strategies, Functions, and Aspects

This report examines the multifaceted aspects of global business, focusing on the strategies and factors impacting business culture. It begins with an introduction to globalization and its drivers, followed by an analysis of the chosen company, Merchant and Mills, a cloth manufacturing company in the United Kingdom. The report delves into the factors behind globalization, including trade tariff reductions, technological advancements, and investment barriers. It then discusses the advantages and barriers of international business, the role of the World Trade Organization (WTO), and the effects of trading blocs. The report also explores intellectual property rights, business functions in an international context, and the impact of business cultures. The conclusion summarizes the key findings and emphasizes the importance of adapting to the global business environment. This report provides a comprehensive overview of the global business landscape, offering insights into the challenges and opportunities for companies operating in international markets.

Global Business
Aspects

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2 ..........................................................................................................................................6
Contribution of Intellectual Property Rights in a globalised economy.......................................6
Managing business functions in an international context...........................................................7
Assessment of entry strategies in international markets.............................................................8
CONCLUSION ..............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In a rapid growth of industrialization and commercialization, the global business is a key
factor in promoting the economic growth of the country. Global business includes various
transaction that take place across national borders to cover large market share of the consumers
and earn revenue by increasing sales and production. The current business model is based on
utilising the available resources and increase potential market to achieve organisational goal.
The organisation chosen in this report is merchant and mills , a cloth manufacturing company in
United Kingdom (Rubtcova and Pavenkov, 2019). This report will examine the manifold aspect
of global market strategy including business strategies and factors that directly impacts the
business culture.
TASK 1
Factor behind the globalisation and formation of modern states .
Globalisation is complex mechanism which affects economic, political and social aspect of
business market and ensure business idea, capital asset, technique and information shared. There
are main several factors behind increasing globalisation in modern states . It includes:
 Reduction in trade tariffs: Due to increase in multilateral form of international business
trade helps in reducing trade tariff to promote the production and sale of the products. It
reduces tax barriers and helps in trading the business. It encourages development of new
technology and consumers to purchase the goods at comparatively lower prices.
 Role of Technological changes: It is one of the main factor behind globalisation because
innovation and technology is a key of economic growth. New technology increase
efficiency and reduce the cost of production. It is a machinery tool that overcome the
hurdles arises in the process of business. It leads to increase in labour production, capital
and other related factors can be determined through advancement of technologies. It
increases the standards of living and best source of technological transfer .The upgraded
technology is the best way to achieve long term growth of the business. The business can
grow in long run when they have advanced technology to meet the demand of the current
market.

 Decline in investment barriers: This situation occurs when companies create singe
market to trade the business activities and accelerate the pace of economy. The
investment is made to diversify the business and increase flow of funds in the business.
The investors also take many factors into consideration while investment . So,
globalisation helps in increasing investment at low rate of interest. Decreased investment
allows increased competition in the market and reduce the legal formalities.
Advantages and Barriers that affects international business
International business are advantageous for the international business and reduce the wastage
of resources and helps the country to produce more products. It focuses on expansion of
production market and benefits the consumers.
 It promotes diversification of trade and ensure higher profit to the business.
 It aims to build consumer trust and brand value.
 This will help the company to primarily focus on positive relationship with their
customers.
 This will increase production and efficiency of the company.
 It ensure the technological diffusion between the countries.
The distinction between domestic and international business
Domestic business includes economic transactions that usually take place within the
geographical territory of the domestic country. It is also termed as internal trade. It involves low
risk and easier than conducting business in international trade. Whereas International business
take place beyond the geographical boundaries of a country. In this, buyer and sellers are not
belong to same country. It is quite difficult to trade in international market because procedure are
quite complicated and involves higher risk. The major distinction between the domestic and
international market is capital investment in which domestic business requires less investment of
capital as compared to international business (Hampden-Turner, Trompenaars and Hampden-
Turner, 2020). Also, business research in international business is very complex to understand
the consumer behaviour and market trends. It allows advance technology and advertising
strategy to promote the product in other countries. The company which adopts advanced
technology can easily compete in the international market as compared to company having less
technology advancement. The legal formalities are also increased while doing business in

international market as compare to doing business in same country. Therefore, these are the few
factors that are influenced the business entry strategy and helps the business to adopt for
surviving in the market for a long run.
The function of WTO in international business
The World trade organisation is an international organisation which smoothen the method of
doing business in other countries. The business environment is uncertain and complex to
determine the changes that take place according to the changes in need and demand of the
consumer. It is an international platform that bounds the member state to resolve their dispute
related to trade and commerce. The main function of WTO is to negotiate between the countries
by framing certain rules and policies for dispute resolution. It is a mechanism that ensure proper
implementation of all the framed policies to encourage global growth and development (Tinkova
and Lisyutina, 2018). Further, it also increase the trading capacity of the country to increase the
production level to create company loyalty and goodwill in the market. It is responsible for
administrating the activities between different nations. It entitle the member state to identify all
the aspects to regulate the business activities. It facilitates the member state relaxation in trade
tariffs, production cost, and implement the legal rules to protect them from the kind of market
manipulation. It allows fair and transparent mechanism between the nation. The WTO ,a
constituent body regulated the business performance and sort out the issue the nation faces with
each other. Therefore, the WTO plays significant role to promote international business
activities.
The effects of Trading blocs in international business.
The trading bloc important role in highly influencing the global trade. It is mechanism
that makes free trade between the countries. It is mode through which certain barriers can be
reduced to make effective business activities. The suitable example of trading bloc is European
Union which allows other nations to come together to do barrier free trade. It is only reduces the
production cost but also minimise the duties impose on export and import of goods. It encourage
higher investment and open doors for new opportunities to expand the business.
The World Trade Organisation (WTO) is an international body that enables its member
states to provide wide range of protection to trade freely with other nation. It allows several
government policy that provides incentives to national and international business organisation.

WTO addresses numbers of complaints which affects the third parties and its affects on social,
economic and political response. The trading bloc act as an institution for serving as an
economic welfare. It monitors many economic policy, competition policy and other rules to
allow free trade service. It promotes business culture and economic relation with other countries.
It also keep check on prices of goods to secure the rights of the sellers. It is beneficial for all
kinds of business market for free movement of goods leads to economic integrity and
sovereignty. It brings competitive spirit in the business and provide various forms of strategic
tools.
The Trade association refers to group of people who comes together to produce goods and
services in the market. It advances expansion and directs the Merchants and mill to produce
variety of trending clothes to its customers (Kamchatova, 2020). However, potential consumer
are also satisfied with the services provided by the Merchants and mills. There are various
governmental policies that helps the business to develop capital to meet the future uncertainties.
TASK 2
The introduction of the local company and its current market
In this report, the company chosen is a local cloth manufacturing company of the United
kingdom known as Merchants and Mills. It is popular for providing variety of cloth of all kind of
fabrics for all age group of people. The company also provide various discount scheme for their
customers and sale discount in every week. It is the best opportunity for them to expand the
business in the international market to achieve the highest level of growth and profit from their
best available service. This is the reputed brand known for its quality cloth.
Contribution of Intellectual Property Rights in a globalised economy
Intellectual property rights refers to exclusive right available to the inventor for their creative
mind and new innovation. IPR is private rights that exclude others form sell, export, manufacture
of invented goods. It aims to promote the new invention and secure the rights of the inventor . It
is necessary for the advancement of new technology and economic growth . The more IPR in a
country shows the most economic contribution of that country in the market. Intellectual
property rights is given in the form of patent, copyright, trademark, design and geographical
indication. The patent is given for the novel, non obviousness of the product and that invention
must have industrial application. It is valuable asset for the inventor and source of income for

them. IPR is a method and techniques to attract the investors to invest in a particular invention to
ensure growth of the nation. It also deals with the licensing procedure for the company who
wants to use his exclusive right for the welfare of citizens then the licensing can be granted to
them in exchange of royalty over the product.
There are many international Convention on IPR available to protect wide range of IP rights
such as Paris Convention, Berne Convention, TRIPS Agreement etc. simplifies the procedure for
its registration. It laid down the rules and policies for effective business activities and ensure
more invention and innovation of technology to make the nation developed. Whereas trademark
is given on the symbol, sign, mark, logo of products and services which makes that product
unique from others (Lazareva, Anopchenko and Roshchina, 2018). In Intellectual Property rights
, allows introduction of new product in the market, increase production , enhance customer
value, prevent from any kind of exploitation. It encourage creative idea and enforce its
implementation by granting them the IP rights. It ease the procedure for its registration under the
Patent Laws and IP related legislation.
Managing business functions in an international context
There are crucial function that are being performed by the company to manage all the
activities in the international market. They frames many policies and strategies to meet the
demand of the consumer to run in the competitive market in the log run. The entire management
is responsible for performing the essential function . Some of them are discussed below:
 Marketing Team: The marketing team is responsible for promoting and advertising the
product at international market to meet the target to make sale and diversify its clothing
product in the market.
 HR Function: Human resource are the important part of the management. These HR
management is performing all the essential function of recruiting and selecting the most
suitable candidate who are able to manage all the task of the business and capable to
occupy the desired position. They are appointing the candidates who possess skills and
knowledge of particular field.
 Operations Team: Operation team of the Merchant and Mills operates their day to day
business activities to properly utilised the resources to perform task more appropriately.

The impact of business cultures in international markets
The business culture is depends upon its plans and policies that create positive environment
for its employees so that they contribute more efficiently in production of goods and services.
The cultural behaviour helps to guide the employees and direct them to work in the same
manner. The positive working culture ensures quality work and transparency in the working
system. The global market creates a society or place of business where purchase and sell of
goods take place to enhance the trade and commerce in the economy. The business culture
includes many factors such as production quality, supply chain, regulatory procedures, and
mechanism to smooth the functioning of business. In general, social culture is a homogenous of
all kinds of conduct, values, conviction that changes by the time. The business culture is
uncertain and dynamic (Shapour and Kamandi, 2021). Those who visualise changes at early
stage, can succeed in the competitive market. There may be negative and positive impact of
business culture depend on the business strategies and economic policies which may change
according to the taste, preference, expectation , government policies etc. So, the business
research is conducted to understand the market and produce the product accordingly. The
ultimate goal of every business organisation is to observe and analyse the market trends and
needs of the future.
The usage and custom ensure the human values and behaviour the culture of any nation that
may vary person to person and region to region. The language, taste, expectation are such factors
that requires lot of difficulties to create good business market by adopting new techniques and
methods of business to exist in the business market for long run.
Assessment of entry strategies in international markets
There are several methods through which entry can be made in international business
market. In order to assess the aspect of business , it is necessary to simplify the procedure for
production and utilise the available resource in most efficient manner. There are various tool that
improves the quality product and services to benefit the consumer. The instruments like trade
tariffs , investment cost, cost of transportation etc. that incurred lot of cost of the business. The
strategic tool is used to implement the policies that helps the business to provide the best
suitable service to its consumer so that trust can build and cover large market share. All these
strategies helps to expand the business in multiple countries and achieve the target of internation

al growth and development of brands (Kaivo-oja and Lauraeus, 2018). The long term and short
term goal has ben made by the companies to gain strong position in the market.
The following planning are used to enter I the international market:
 Direct Exporting: Exporting refers as sale that made to target certain area, region etc.
through mediators, agent as it helps in enhancing the successful exporting of good. It is
made directly to the consumers. Multiple channels to distribution helps in exporting the
products from companies to consumers.
 Licensing: It allows the company to use the goods and services of others and offers them
royalty in exchange of their services. It helps in proper flow of goods an services through
which demand can be satisfied without any shortage.
 Franchising: It refers to diversification of business due to excessive growth and
goodwill has been created by the company for better services. The branch of company is
opened to promotes goods globally.
CONCLUSION
From this above report, it has been concluded that the business market strategies helps to
evaluate the current and future market demand. The unique policies helps to win in the
competition market over the other through implementing new technological changes and
innovation. It allows the business to satisfy its customers by reducing the production cost and
increasing capital asset that will helps in growth and development of economy. The customer are
the king of the market and Merchant and Mills are succeed in creating brand value to gain good
position in the market.
REFERENCES
Books and Journals

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Kakarougkas, C. and Stavrinoudis, T., 2021. 4 COVID-19 impact on the human aspect of
organizational culture and learning: The case of the Greek hospitality industry.
Organizational learning in tourism and hospitality crisis management, 8, p.49.
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INTERNATIONAL MULTIDISCIPLINARY SCIENTIFIC CONFERENCE ON SOCIAL
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innovative aspect. Sci. Res. Dev. Econ. Firm, 9(2), pp.28-34.
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