Global Business Sustainability: Challenges and Opportunities Report

This report delves into the approaches for establishing a distinct business image within the international market, particularly in the context of global business sustainability. It analyzes company objectives, emphasizing customer base improvement as a key driver for strategic planning, which is based on SMART objectives. The report utilizes PESTLE and SWOT analyses to evaluate the external and internal business environments, respectively. It examines factors like political stability, economic conditions, and market growth, alongside internal strengths, weaknesses, opportunities, and threats. The report highlights the differences between developed and emerging economies, discussing factors such as globalization, currency stability, inflation, and the importance of foreign direct investment. It also explores market size, education levels, and cost-benefit analyses, concluding with the challenges and opportunities for multinational businesses in emerging markets, and the need for sustainable practices.

GLOBAL BUSINESS
SUSTAINABILITY

Table of Contents
Abstract........................................................................................................................................1
BUSINESS IN EMERGING ECONOMIES DISTINCT FROM THOSE OF OTHER
INTERNATIONAL.........................................................................................................................2
Markets .......................................................................................................................................5
Challenges....................................................................................................................................6
CONCLUSION ...............................................................................................................................8
REFERNCES...................................................................................................................................9

Abstract
This report will discuss the approaches that can be used to make a distinctive image of
the business organization in international market. Objectives of company will be analysed behind
running business operations such as improve customer base will be used to evaluate about the
objectives that can drive strategical planning of the company. Plans and strategies must be based
on SMART objectives that enables objectives to be specific, measurable, achievable, realistic
and target able. SMART objectives is a suitable base to analysis the objectives of the strategical
planning. Strategical planning involve making strategies based on the business environment
factors like political factor, economical factor, social factor, technological factor, legal factor and
environment factor. To evaluates the internal environment of the company SWOT analysis will
conduct. SWOT analysis will guide the company management to assess different strengths,
weaknesses, opportunities and threats of the company. Strengths like presence of target
customers over social media networks, growth potential of company and other strengths will be
analysed with the support of SWOT analysis tool. Weaknesses will also be evaluated like lack of
marketing experience over digital channels will, productsd and service deficiencies will also
analysed in this report. Different opportunities like market growth, business expansion and other
relatable opportunities due to digital marketing plan will be assessed in the report.
PESTLE analysis involve all crucial aspects of the external business environment of the
company. Political factor involve in PESTLE analysis focuses over analysing about the political
situation and condition of the country such as political stability, government policies, and other
political aspects of the country. Government policies put a huge impact over company's presence
in target market. Market share, achieve higher growth in target market, improve target customer
base of company and other relatable objectives work behind the operations of the company.
Strategical planning and objectives must be specific, measurable, achievable, realistic and target
able. To evaluates the internal environment of the company SWOT analysis will conduct. Both
the internal and external business environment drives the strategical decision-making of the
company in order to take competitive advantages in the target market by making a unique
identity in the target market with company's products and services. Report will project all the
suitable aspects of the company that bring attention of company's target customer base in respect
to products and services. IN order to make a specific presence in target marjket company
management needs to cater the best products and services in target market.
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BUSINESS IN EMERGING ECONOMIES DISTINCT FROM THOSE OF
OTHER INTERNATIONAL
Increase in globalization has increased their opportunity for countries to increase their
trades. Nation trade globally to fulfil the resource requirement in their countries and also gain
more revenue which helps to develop economy effectively (Ul Din, Abu-Bakar and Regupathi,
2017). The resources are scattered globally and it is very essential for the nation to acquire those
resources to grow nation and increase its potential effectively. There are two aspects of trading
on in import and other is export. Import help nation to acquires goods and services which they
lack due to inefficiency to create in the country itself. This also helps the country to find better
quality with low cost goods. Export means providing goods and services which are in abundance
to other countries which help to generate revenue and improve development of the country
effectively. Developed economy are the countries which have high level of economic growth and
global security. This economy is the most productive globally and also help to support global
economy to grow effectively. Developing economies are those counties which are not having
potential to grow rapidly due high death rates and birth rates, poor education level of population
and low productivity of industries to generate more revenues. Emerging economies are also
called as developing economies however emerging countries focuses on development of
industries to gain mo0re revenues and motivate agriculture sector to fulfil the basic needs of
countries and also increase the export of food to other countries. It is very essential foe emerging
countries to enhance their knowledge and skills to attain high productivity to increase the
efficiency to grow more rapidly. This help builds effective infrastructure and increase education
level of the country to match with global economy effectively.
It is very essential for business to attain competency in global market so that they can
gain better profit margins to grow (Ha, Kose and Ohnsorge, 2019). There are many factors which
the emerging economies need to evaluate to gain better opportunity increasing their efficiency in
the global markets. Government has to motivate population to be self-employed which helps to
increase the productivity of industries and provides more employment opportunities. With more
employment opportunity there will be more disposable income and higher standard of living of
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population. As a result the demand in market increases due to higher income level of population
which support manufacturing industries of the country. With higher productivity of
manufacturing units country will become stronger to export their products and services in the
international market to gain higher revenues and support GDP of the country effectively.
Emerging countries also have unstable local currency which impact the foreign trades and
revenue generations. The countries need to develop a unified system of currency which help the
country increase the stability of currency movement and develop the domestic market growth
positively. Inflation rates and import ad export rates play a vital, role in the growth rate of
emerging economies effectively. Increase In inflation also impact the cost of manufacturing thus
increase rices of final products to its customers and reduces sales as this is a cycle which impact
the economic growth to develop better facilities in the countries and gain higher productivity
effectively. This is very essential. Emerging economies has the opportunity to grow by studying
the data of developed economies and understanding all the resources which are required to be
potential, and increase the efficiency to generate higher profits.
There are many analytical tools which helps the countries to understand the value of the
economy and improve them according to the results effectively. With the help of PESTLE
analysis and SWOT analysis economies understand all the external and internal factors with
their strengths and weaknesses which help them to determine the resources which can achieve
the opportunities. Emerging economies also have the potential to allow foreign direct investment
which helps the company to gain better skills to evaluate the market to identify competitiveness
in the domestic market. Emerging economies have the ability to analyse the potential by
assessing the exchange rates. If the rates is lower in the global market which increase the risk of
the country reduce the revenue generation and also implies that productivity of the country is
reduced by many market factors. With the help of GDP and GNP economy can identity the
growth rates and decline rates with proper statistical figures. This also help the country to focus
on the industry in crease their productivity effectively. Cost of capital is very important factor of
any business in emerging economy as it help to increase the competitive advantage of the
business in the market. Market value of emerging economies can be measured through the
demand of customers in the market and education level of to gain higher perceived values to
encourage any brand to expand in the market and support economic growth effectively.
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However, there are many risks and challenges for multinational businesses to invest in
the emerging countries which can impact their growth and profit margins negatively
(Stockhammer, 2017). Due to emerging in nature many foreign direct investment are done to
gain higher market profits. As globalization is proving to be negative factors to reduce the
potential of emerging markets (Schmidt-Hebbel and Carrasco, 2016). With the investment of
many multinational companies and higher capital inn the market and better marketing strategies
this discourages the potential of domestic business and reduces the market share gradually.
International business also impact the revenue generation of the economy as all the profits is
transferred to the host company. With the fluctuation exchange rates due to change in global
economic rates this increase then risk of emerging economies to increase their losses. This also
impact the potential of domestic business to export their products and services in the
international market. Lack of proper demographic distribution impact the population and
increases the aggression again the government. As only those regions develop in the country
which has higher rate of global interaction and trades to gainsayer profits. There are many risks
like frauds in international markets which impact the domestic business and emerging economy
to grow effectively.
There are many differences in developing and developed economy business's marketing
strategies to increase their sales of products (Mohamad and Chin, 2018). As developed countries
focuses on quality and brand value to increase customer satisfaction and growth opportunity of
the companies. They also focus on different types of innovation to increase their market share to
gain better profit margins and goodwill of the company effectively. It is very essential for
business of developed countries to ensure the systematics procedures to attain higher market
shares. The target products of developed economies are advanced technology, foreign direct
investment, loans and borrowings to emerging countries. The emerging countries hare more
focused on providing basic needs of people and the target product of the countries are
agricultural products and services and human resources outsourcing to developed countries.
Emerging economies also target on refined petroleum and natural products which are extracted
from the earth. Like marbles, granites, jewellery which increases the economic growth of the
country. However, them bring countries increases their imports from export due to lack of
resources to provide all the basic needs and wants of population to make them satisfied
effectively (Rezaee, 2016). It is also very essential for emerging counties to increase the potential
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of the population by educating them and increase their knowledge-based and skill which help to
improve the quality of industries effectively.
Cost benefit analysis is the key factors which help to increase the economic growth of
developing and developed countries as the methodology differers in both context to increases the
potential of both types of economies. In context of developing countries cost benefit analysis
helps to increase the opportunity to expand structures and facilities to increase potential of
country effectively. This helps the developing country to improve its creditability to borrow
funds from world bank effectively. Cost benefit analysis also reduce the risk and challenges of
developing country and help them to grow more effective in the global market to increase the
growth rate of their economy. This also increases the opportunity of economies to collaborate
with international businesses and increase working capital of domestic SME to increase their
profit margins effectively. Developed counties need to adopt higher market research strategies
and perform all the risk analysis which help to reduce challenges and risk of international
businesses in emerging market effectively (Dyllick and Muff, 2016). It is very essential for the
business organization to evaluate the market trends and cultural value of population to increase
their sales and also support domestic players. Companies which have sustainable products also
gain higher befits in emerging economies and hospitality industries like aviation industries.
Markets
Size of middle class and spending power: Developing economies middle class people
have moderate spending power and the size of middle class in numbers is generally very large.
Whereas developed economies have large proportion of people with strong spending power on
their purchases, high disposable income which benefits companies to establish their international
business in developed countries (Elert and Henrekson, 2020).Doing business in emerging
economies are largely different from developed and developing countries as the customer base
are variably different which affects marketing strategies and capital expenditures on their
promotional activities.
Level of education: Level of education is also an important factor determining the
potential of market basis for customers as the customers from developed economies are highly
educated in comparison from emerging economies and countries where education level is
relatively low. People with high educational standards and strong communication standards with
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digital platform services area able to get easy access toe company products and services.
Developing counties have better educational facilities as compared to emerging economies whee
people are have comparatively less access to education standards. Education parameter in
country are important area for business managers to analyse as the customers base are highly
dependent on these factors making efficient reach of digital services to them (Furceri and
Zdzienicka,2020).
Assess per capita income: This factor posses large factor of differentiation between
emerging economies, developed and developing economies as the customers have variably
changing disposable incomes and the per capita income remaining at their dispose to spend on
shopping of high quality services and products. Business managers while expansion of business
scale in markets share of developed economies have no need to ponder their strategies on per
capita income of customers as they have high income potentialities and opportunities which
allow them with strong purchasing power.
Social mobility:Social mobility factors explain the opportunities for people to move
upward from unprivileged society to break the boundaries of middle class life standards and
enhance their living patterns through access to high quality products and services (Masi, Savoia
and Sen, 2020). Establishing business into developing and emerging factors have risk of low
social mobility factors as people are less reliably to move upward in their social standards of
living due to less disposable income. Developed counties have high social mobility among
people which also gives them the access to digital media platforms for achieving high quality
products and services. Digital media provides with various platforms to enable company
management to reach world-class services instantly through internet, provide feedback services.
Customers grievances with strong efficiency can be served by company management where there
is high social mobility among people.
Challenges
Political instability: Business managers to expand their business in developed,
developing or emerging counties have to focus majorly on political scenario of economies which
is very important to establish long term sustainable factors (McAdam, Crowley and Harrison,
2020). Developed counties have strong political stability which makes to easy for business
managers to expanse their business and diversify their market share in those countries.
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Developing countries and emerging companies have rapidly changing political scenario which
makes difficult for business managers to expand their business in those countries.
Intellectual property: Business managers have high demand for economies where there
the intellectual property rights are strong as in developed counties which makes it highly
attractive business expansion opportunities. People all over the world can use digital media
services through detailed knowledge of intellectual property and other patents occupied by
companies. Products and services of company are strongly protected against stealing and patent
thefts which makes it easy for business managers to expand their operations efficiently.
Intellectual property rights makes patents secure for companies and the copyright issues are
strongly minimized which makes it companies to get easy access in business expansion.
However, developing and emerging companies have less intellectual property rights and patents
facilities which increase the cases of copyright issues and patent thefts which negatively impacts
the decisions of business managers to expand their business scale. Developed countries have
strong intellectual rights and patent properties which makes strong business performance
delivery by company and there are high percentage of reaching new segments of customer
(Naraine and Meehan, 2020).
Corruption: The developing and emerging countries have high factors of corruption in
their economies as there is less transparency in business transactions due to less use of internet
services which also has large negative impact on business managers decisions to expand their
business into international market. Whereas there is nil corruption in developed counties as there
is strong transparency factor and high use of digital media in all companies which is an attractive
parameter for business expansion by global managers. The global business managers have strong
demand for corruption free environment in economies where they wish to expand their business
as it makes long term sustainability factors positive for company. Corruption factor negatively
impacts the reputation of company and whole country overall due to which business managers
do not like to expand their business in corruption environment. The lack of transparency factor
makes customers less reliable to product quality standards and less potentiality of purchasing
makes revenues and probability margins low (Rathore and Bhargava, 2020).
Infrastructure: The developing and emerging countries have slow infrastructure factors
with is highly less efficient for business managers to expand their business into those counties.
High internet facilitates and digital media usage is an important factor which companies focus on
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while expanding their business in large scale in Market share as it makes it easy top attract new
segments of customers globally. Digital process has large role to cultivate competitive
organizational culture in company while expanding the business into international market-share
as it enables large scale instant promotion through digital media. Whereas developing and
emerging economies in counties have less growing opportunities in their markets hare as the
infrastructure lacks facilities, inefficient internet services and slow growth factors which makes
an unattractiveness for business managers to expand their business into those counties (Si, S.,
Ahlstrom, Wei and Cullen, 2020).
Family oriented business: Developing and emerging economies have high percentage of
people involved in family oriented business which makes it difficult for companies to establish
new companies business. AS compared to developed counties where large percentage of people
are employed in MNCs and companies where there is high potentiality of growth. These
economies have strong Internationalization process which enables business managers to expand
their business scale to new sectors of economies and countries for attracting new segments of
market(Uzhegova, Torkkeli and Ivanova-Gongne,2020). Internationalization is part of
globalization where business managers have large role to construct their expansion plans and
digital media promotion in developed countries is large platform which enables large scale
promotion quickly.
CONCLUSION
This essay provided a brief information on different types of economies which impact the
business operation of multinational organization and domestic businesses of emerging
economies. Report discussed the importance of risk analysis and cost benefit on the economy
which increase the potentiality and value of emerging market effectively. Report highlighted the
different market factors which impact growth of emerging economy and also impact the
creditability in global market negatively. As it is very essential for economies to provide
effective development of market to avail resource to domestic businesses to expand and improve
standard of living of population effectively.
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REFERNCES
Books and Journals
Dyllick, T. and Muff, K., 2016. Clarifying the meaning of sustainable business: Introducing a
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Elert, N. and Henrekson, M., 2020. Entrepreneurship prompts institutional change in developing
economies (No. 1313). IFN Working Paper.
Furceri, D. and Zdzienicka, A., 2020. Twin Deficits in Developing Economies. Open Economies
Review, pp.1-23.
Ha, J., Kose, M.A. and Ohnsorge, F. eds., 2019. Inflation in emerging and developing
economies: evolution, drivers, and policies. World Bank Publications.
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capacity, and political institutions in developing economies (No. wp2020-10). World
Institute for Development Economic Research (UNU-WIDER).
McAdam, M., Crowley, C. and Harrison, R. T., 2020. Digital girl: cyberfeminism and the
emancipatory potential of digital entrepreneurship in emerging economies. Small
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Mohamad, M.A. and Chin, O., 2018. The effects of business networking and entrepreneurial
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Naraine, L. and Meehan, K., 2020. Strengthening Food Security with Sustainable Practices by
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Rezaee, Z., 2016. Business sustainability research: A theoretical and integrated
perspective. Journal of Accounting Literature. 36. pp.48-64.
Schmidt-Hebbel, K. and Carrasco, M., 2016. The past and future of inflation targeting:
Implications for emerging-market and developing economies. In Monetary Policy in
India (pp. 583-622). Springer, New Delhi.
Si, S., Ahlstrom, D., Wei, J. and Cullen, J., 2020. Business, entrepreneurship and innovation
toward poverty reduction.
Stockhammer, E., 2017. Determinants of the wage share: a panel analysis of advanced and
developing economies. British Journal of Industrial Relations. 55(1). pp.3-33.
Ul Din, S.M., Abu-Bakar, A. and Regupathi, A., 2017. Does insurance promote economic
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Uzhegova, M., Torkkeli, L. and Ivanova-Gongne, M., 2020. The Role of Responsible Business
Practices in International Business Relationships Between SMEs from Developed and
Emerging Economies. In International Business and Emerging Economy Firms (pp. 17-
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