University Report: Global Impact of International Business Strategy

This report analyzes the global impact of international business, based on the case study "Managing Differences: The Central Challenges of Global Strategy." It examines the strategic operations of companies like TCS, Cognizant, and IBM in the global market, focusing on internal and external factors. The report includes a PESTLE analysis, SWOT analyses for TCS, IBM, and PNG using the AAA strategy, and discusses conflicting environmental factors and strategic implementation processes. It also explores global marketing and operational aspects within the AAA framework, highlighting current challenges and offering recommendations. The report emphasizes adaptation, aggregation, and arbitrage strategies, and their impact on market expansion and revenue generation in the IT sector. It also covers the challenges in managing cultural diversity and transnational leadership. References are provided at the end of the report.

Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS
Global Impact of International Business
Name of the Student:
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Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS

Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS
Table of Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
SWOT analysis................................................................................................................................6
SWOT analysis of IBM after using the AAA strategy....................................................................7
Conflicting environmental factors...................................................................................................8
Strategic Implementation of Global Markets................................................................................10
Global marketing and operations...................................................................................................11
Current Challenges:.......................................................................................................................13
Recommendation and conclusion:.................................................................................................14
References:....................................................................................................................................15

Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS
Introduction
The following report is based on the case study “Managing Differences: The Central
Challenges of Global Strategy” where the major objective of the study is to understand the
current situation of international business functioning in the market along the internal and
external factors associated with the respective business function. As compared to the
international strategic operations of a business organization, the major goal can be to manage the
kind of differentiated operations that can be raised at the border markets. The initiative adopted
by the companies like TCS, Cognizant and IBM is by introducing several adaptive measures in
order to bring a better maximization in the revenue and market share value to enhance systematic
operation strategies in the current market.
As a part of discussing the case, the discussion regarding several conflicting
environmental forces are also added to the study along with creating a systematic strategic
implementation process based on the present and past condition of the companies operates in an
international basis. The discussion also identifies the global market operations of companies in
the international market along with understanding the several challenges faced by the same.
There are also certain suggestion and recommendations added to make the study more effective
and advanced under all terms.

Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS
Discussion
Environment: External and internal factors
PESTLE analysis
Situation Analysis
Political As per the Asia Power Index, New Zealand can be considered as the
‘middle power’ country that has stable as well as peaceful political
environment. After the increasing foreign influences, the government
has contributed in improving the foreign investment trade opportunities,
which can significantly influence the business expansion process of IT
companies (Beddoe & Duke, 2016). In this environment AAA strategy
adoption process can be beneficial in terms of gaining the competitive
advantage.
Economic IT industry can be considered as the major contributor that has
influenced the GDP rate in New Zealand (Islam & Mamun, 2017).
Changing trends of consumption, investment as well as savings has
influenced the economic situation in this country. In the mixed economy
in this country, free trade opportunity can significantly influence
business expansion of IT companies, with the effective adoption of
AAA strategy in this country.
Socio cultural In the diversified socio cultural environment, changing consumption
behavior towards adopting the technological advancement can
significantly influence the strategic direction of IT companies in the
New Zealand market (Fitt et al., 2018). In this situation adopting the
AAA strategy can significantly impact on the adoption ability of the
companies.
Technological New Zealand has the diverse technological environment. After the
globalization, technological advancement in this country has not only

Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS
influenced the innovation and creativity in the IT companies, but also it
has made an important contribution for managing the standard software
and application programming process in the market (Islam & Mamun,
2017). In this situation, the technological environment of NZ has
influenced the international trade. Maintaining the efficiency as well as
sustainability in the business environment AAA can significantly bring
growth opportunities for the companies like TCS, PNG and IBM.
Legal In case of NZ, it has been identified that the country welcomes the
foreign direct investment process. Introducing the strong independent
justice system, the country has influenced the global operations. In this
legal environment, it can be assumed that the AAA strategy following
IT companies can be sable to significantly influence the business
operations in this particular market.
Environmental Environmental regulations in a country significantly impacts on the
global business operations. The climatic situation in the country is in the
favorable situation for developing business in the country. Strict
environmental regulation regarding the waste management can create
pressure on the business operational process. In this situation, if the IT
companies like TCS, IBM and PNG will adopt the AAA strategy, it can
create negative impact on the revenue generation process.
(Created by author)
SWOT analysis
SWOT analysis of TCS after using the AAA strategy
Economics of scope
Strength Weakness
 Tesco can gain significant position in
the market with high revenue
 The aggressive perspective of this
AAA strategy can create the

Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS
 The company can expand its business
with the large acquisition
opportunities
competition in the market.
Opportunity Threats
 The major opportunity of the AA
strategy that it has enhanced the
adaption ability of the company in
global market.
 Customer dissatisfaction towards the
market expansion can create the
challenges while gaining the market
benefits.
(Created by author)
SWOT analysis of IBM after using the AAA strategy
Strength Weakness
 IBM has can significantly generate the
operation in both the local and global
market.
 Increasing numbers of employees can
influence the massive operations in the
market.
 The aggression strategy of the
company can influence the
competitive advantage gaining
process.
 The aggressive perspective of this AA
strategy can create the operational
challenges in the competitive business
environment.
 In the AAA strategy, transferring the
responsibility can be tough for the
company.
Opportunity Threats
 The major opportunity of the AAA
strategy is it can help the company to
generate high revenue in the
competitive business environment.
 Analyzing the major operational threat
it has been identified that due to
increasing numbers of competitors in
the market, operational process can

Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS
get tough.
(Created by author)
SWOT analysis of PNG after using the AAA strategy
Strength Weakness
 PNG can generated the operation in both the
local and global market.
 Increasing numbers of employees can
influence the massive operations in the
market.
 The aggression strategy of the company can
influenced the competitive advantage
gaining process.
 The aggressive perspective of
this AAA strategy can create
the operational challenges while
making the aqcusition.
Opportunity Threats
 The major opportunity of the AAA strategy
is it can significantly bring the economic
scope that ensures the sustainability in the
international market.
 Analyzing the major
operational threat it can be said
that due to important
implementation of AAA cam
negatively influence the cost
structure of the company.
(Created by author)
Conflicting environmental factors
In the global economic crisis, operating in the global business environment has become
an important concern. According to Columbo et al., (2019), in terms of illustrating the linkage
between the group interaction and organizational success, the leadership practices are very

Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS
important. Depending on the global leadership principle, due to changing organizational culture
as well as motivating the coordination process among the organizational units, the global
leadership is being considered as one of the important conflicting components. In the global
business environment, managing the diversified culture as well as lack of cooperation from the
local organization, it can be become challenging in terms of adopting the AAA strategy.
Analyzing the current strategic directions of the companies, it has been identified that in terms of
promoting the compliance by the followers, introducing the punishments as well as rewards, the
organizational culture is being developed. However, in terms of adopting the AAA strategy,
transnational leadership practice can be the important conflicting factor that can influence the
operational process.
On the other hand, Powell et al., (2019) stated that based on the macro and micro perspectives, it
can be said that the globalization process can get influenced depending on the aggressiveness as
well as group performance in the workplace. Social and individual levels of operations can
influence the conflicting the operational environment for the companies. Group interaction and
performance satisfaction are the important conflicting factors that may influence the global
business operation.

Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS
Strategic Implementation of Global Markets
As compared to the operational aspects associated with different companies in the market
that are related to the IT sector which includes TCS, P&G, Cognizant and IBM. The functional
process of strategic implementation process is based upon the system of A to AA and AAA
strategic formulation. Some of the major strategic implementation function associated with the
international business operations in the global market are mentioned below:
 As per the case study, it is understandable that the first and foremost factor associated
with the implementation of AAA strategy in the international business operations helps
the organization in maintaining a proper system of economies of scale and enhance
them in attaining efficiency factor in the global operations of the respective organization.
 According to the case study, it is stated that most of the companies generally give more
emphasis on three aspects of A’s where the flow of implementing the strategic function
ranges from A to AA and AAA strategic function. It is understandable that the
implementation of all three operational aspects are considered to be a challenging factor
for the organizations among which AAA strategy can be considered to be more
suitable which supports both managerial and organizational operations of the
companies to be more flexible and reliable under all terms.
 The application of Adaptation, Aggregation and Arbitrage strategies may enhance the
organization to generate a better hike in the revenue system and the market share of
the companies in the global market.

Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS
 These strategies are considered to be the more effective implementation process for any
organization which is operating in the global market where this manages the system of
differentiation and cross border issues caused in the international market which can
be a competitive advantage for the companies. The case study clearly states that,
several organization like TCS, Cognizant and IBM operating in the international
market believe AAA strategy to be more effective rather than functioning on the
basis of giving more emopha1sis on the AA strategic function.
Global marketing and operations
The AAA framework has helped the companies operating in the IT sector to gain
effective benefit in terms of marketing. The companies like IBM, P&G and Cognizant and TCS
have effectively developed the marketing strategies depending upon the adaption, aggression and
arbitrage (Kolluru et al., 2018). Adaptation enables the companies to understand the aspects of
localisation, responsiveness, aggregation focuses upon standardization and economies of scale
and finally arbitrate helps is exploiting economic differences.
These IT companies have shifted from the ‘A’ strategy to the ‘AA’ framework so that the
process of operations and marketing get improved. They initially followed the adaptation
strategy that led them to exploit the market in one hand and bring product discrepancies by
focusing upon the tensions among the standardization and the localization process. Now the
companies follow the AAA framework will be able to bring changes in their services according
to the need of the markets of the region (Zhou, Liu & Zhou, 2015). The process of localizing
their products according to the preferences of the local markets can effectively help the

Running Head: GLOBAL IMPACT OF INTERNATIONAL BUSINESS
companies to boost their revenues and maximize their local revenues. Their products or services
are customized to the particular countries. They have followed decentralization management
processes where the location managers get the power of autonomous decision making
(Ghemawat, 2007). This enables the companies to react effectively to any type of changes in the
B2C model of these IT companies through successfully integrating their services with the
regional markets.
Secondly, the companies mentioned before are very much associated with the arbitrage
framework. The adaptation framework when did not effectively work, they focused upon this
arbitrage strategy in order to exploit the differences between the locations for gaining advantage
of the whole corporation. The production cost in this regard is the most typical example because
the process of having different locations with the lower labor costs and that of the raw materials.
P&G had shared the global expansion with the adaptive arbitrage strategy which only focused
upon the expansion of the locational research and development branches and that of the mini
P&G centers in different locations. Now after following the AAA framework, the companies like
P&G had added the third and most effective aspect of marketing and operations which is the
aggregation (Ghemawat, 2007).
This method particularly focuses upon the standardization of the products and services.
This is related to the process of creating and utilizing the existing economies of scales across the
multiple locations. The IT companies as operated in the international market are to develop their
own marketing standard which enables them to stand apart from the competition. These
products and services though developed in one country must fulfill the standards of the
international markets (Ghemawat, 2007). As these companies have already created a particular
reputation through the growth of their standard of quality of their services and products,