ATHE Level 7: Strategic Management Extended Diploma Report

This report provides a comprehensive analysis of the international business environment, focusing on strategic management principles and their application to real-world scenarios. The report begins by outlining various business techniques used to evaluate the international business environment, including PESTLE analysis, Porter's Diamond Model, and Porter's Five Forces, using Google as a primary case study. It then delves into the micro and macro environments of Google and Aston Martin, examining the impact of globalization and international trade on national economies and assessing the benefits, opportunities, and challenges for these specific organizations. The report further explores organizational structures in global markets, analyzes the implications of cultural and regulatory diversity, and evaluates the potential conflicts between corporate strategy and ethical, social, and sustainable responsibilities. Finally, the report assesses the importance of corporate social responsibility and sustainability in supporting business success, providing a well-rounded perspective on strategic management in the international context.

ATHE Level 7 - Strategic Management
Extended Diploma in International Business Environment

Contents
ATHE Level 7 - Strategic Management........................................................................................1
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1.1 Ascertainment of business techniques which can be used for evaluating international
business environment...................................................................................................................3
1.2: Analyse micro and macro environment of specific company which operates on global
level..............................................................................................................................................8
1M1: Ascertaining the extent to which workings related to international environment influence
the success of business organisation..........................................................................................10
1D1: Evaluation of the risk involved in operating in an international business environment...11
2.1 Assessment of impact of globalisation and international trade on national economies......11
2.2 Assess the benefit, opportunities and challenges of globalization and international trade for
specific business organisation....................................................................................................12
2M1: Exploration of organisational structures of businesses operating in global and
international markets.................................................................................................................13
3.1 Analysing the implications for businesses regarding cultural and regulatory diversity in
international markets.................................................................................................................15
3.2 Evaluate the potential conflicts between corporate strategy and ethical, social and
sustainable responsibilities........................................................................................................15
3.3 Assess the importance of corporate social responsibility and sustainability in supporting
business success.........................................................................................................................16
Covered in PPT..........................................................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
International business environment can be described as surroundings in which foreign
organisations run their business operations in an effective manner (Aguilera and Grøgaard,
2019). It is important for establishments who operates their business operations in foreign land to
critically analyse international environment which aid them in formulating effective strategies
for making their business venture successful. Ascertainment of international business
environment aid organisations in enhancing their talent management practices in an effective
manner. This also provide exposure to organisations for exploring foreign investment
opportunities. This can be beneficial for organisations to diversify their operations in an
international market which provides them accessibility as well as viability to their brand.
Through this, company can learn excess of knowledge regarding new cultural practices of the
nation, where it wants to settle their business ventures.
International business environment is considered as beneficial as it essentially contributes
to advanced technologies, development of infrastructure, managerial skills and creation of
numerous jobs (Rimita, Hoon and Levasseur, 2020). It aid businesses in gaining a wider
understanding regarding distinct cultures as well as markets. It allows to gain an understanding
in relation to globalisation which has made world more connected to each other. In order to have
better understanding of international business environment, Google LLC and Aston Martin is
taken into consideration for different assessments.
This project demonstrates an understanding of varied business techniques which can be
used for assessing international business environment. It also depicts an understanding of
globalisation as well as international trade on national economies. It also assess varied challenges
posed by globalisation practices and international trade for specific establishment. It also poses
an understanding of evaluating international markets in which business activities are operated in
an effective manner.
MAIN BODY
1.1 Ascertainment of business techniques which can be used for evaluating international business
environment
Google is an American based technology company which operates its activities
multinationally. It essentially focuses on enhancing artificial intelligence, online advertising,

cloud computing, e-commerce and many more. It is considered as most valuable company in the
world due to its market dominance, technological advantages and data gathering networks. It was
founded in 1998 and has its headquarters at California, United States. It is also considered as
most visited website which provides features like search engine, mapping and navigation
application (Alsaad and Taamneh, 2019). It essentially generates most of their revenue from
advertising. Apart from using their own algorithms for understanding search engine requests,
Google also uses technology of DoubleClick for advertising purposes.
Business environment is considered as dynamic and changes rapidly with the evolving
time period. International business environment changes due to different aspects which
essentially involves trade measures, globalisation practices and many more. There are varied
techniques which are used by business organisations to scan differential factors (Bhattacharyya
and Verma, 2019). This can be done through effective tools of environment scanning which aid
in gathering, evaluating and dispensing information in order to develop varied techniques
effectively. Varied techniques which are used by Google to assess their international business
environment are as follows:
PESTLE analysis
Pestle analysis as a business technique for ascertaining international environment is
described as a strategic framework which is used by companies to evaluate varied forces which
impact their business organisations in an adverse manner (Buccieri, Javalgi and Cavusgil, 2020).
This is considered as beneficial for organisations as it leads them to assess a macro picture of
their business operations in a strategic manner. This help organisational managers in formulating
varied strategies and act in a proactive manner to mitigate varied threats in a strategic manner.
Varied factors of PESTLE analysis which are assessed by managers of Google are mentioned
below:
Political factors are essentially concerned with actions of government involve in the
business operations of an organisation. It essentially encompasses corporate taxation measures,
political stability and administrative system of a particular country (Buckley, 2019). In
accordance with international political environment, Google managers have to oversee varied
regulations while operating in different countries. In relevance with Google, they have to face
several issues in relation with financial, legal and ethical aspects of differential nations. If
political landscape of a nation is stable as well as it has good marketing conditions, Google can

plan to penetrate their operations in that country. At the same time, domestic companies can
poses as a threat to Google as they get subsidies and grants from their regional government.
Google has made collaborations with countries through free trade agreements to operate their
operations in the specified nation.
Economic factors encompasses of rise in GDP, unemployment and inflation rates which
impact business operations in a significant manner (Buckley, Enderwick and Cross, 2018).
Companies who operates their activities in foreign land remain worry in regards with
fluctuations in currency rates. These factors are needed to be analyse critically by organisations
as they are significant in long-range forecasts in regards with revenue as well as expenses. It is
imperative for companies to evaluate economic conditions in relation to international
marketplace as it has overall influence on its growth as well as development avenues. Varied
countries are willingly support the companies which help them in enhancing their technological
practices. It can be seen that there are increasing demand of technological-based companies
which help Google to enter in a flourished market. Due to global pandemic, economy has been in
its down turn which can also impact the business operations of Google. There are varied
countries which supports higher demand in relation with computing gadgets and other related
technology. In relevance with marketplace of United States, if economic landscape remain stable
and customers can retain their their spending patterns in an effective manner, Google can
introduce numerous items. It is imperative for Google to consider positive as well as negative
side of stabilised economic conditions in order to increase their revenue streams.
Social factors involves aspects related to perception, attitudes and taste of a specified
population of a certain nation. Social as well as cultural factors directly impacts the business
operations in a significant manner. These are concerned with demographics, population growth,
health consciousness and many more aspects related to a specific country (Cavusgil, 2021). Data
privacy is a big concern of numerous users and they want to block virtual advertisements for
preserving their data. Google generates most of their revenues through these advertisements,
privacy concern of users impact their income. Presence of social networking sites are also
creating threat for Google as business organisations can post their advertisements through them
thereby avoiding ad-blocking system.
Technological factors are concerned with introduction of any innovative practice by
business organisations of a specified country (Cherunilam, 2020). In context to Google,

technological innovation is considered as favourable for them as internet users are increased on a
constant basis which led to growth as well as development avenues. In order to operate their
international activities in an effective manner, Google can use AI based technologies for adding
up more features to their platform in a significant manner. Google can be accessed by users
through mobile phones also which impact performance of Google in an significant manner. In
order to meet technological advancements in world, Google managers needs to pace up with the
advanced technology in a strategic manner.
Legal factors essentially encompasses of legislations formulated by government in
relevance with employability, health and safety regulations that are needed to be enforced in
organisations in regards with a specified country (Gaganis, Pasiouras and Voulgari, 2019). It is
imperative for business organisations to critically evaluate legal landscape while operating in an
international environment. In relevance with Google, numerous countries have made laws
regarding maintaining online privacy of their population. Managers of Google should make
improvements in their services in order to adopt laws relating to general data protection in
relation with UK. It is imperative for Google to analyse varied opportunities as well as threats
regarding the legislations framed by distinct nations.
Environmental factors in relation with a country are concerned with ethical sourcing,
corporate social responsibilities and supply chain management indulged by business
organisations (Gulanowski, Papadopoulos and Plante, 2018). Users are becoming more
concerned with environmental practices of an organisation and believes in procuring the products
from those establishments. In relevance with Google, they have been indulged in numerous
initiatives for energy consumptions and conserving the environment. They also have entered in
collaborations regarding solar as well as wind projects. They are also working on being carbon
neutral in order to fulfil their commitments.
Porter diamond model of national advantage is particularly designed in gaining insights
regarding competitive edge which nation posses due to specified forces as well as describe how
government act as a catalyst for improving their position in economic environment (Hamilton
and Webster, 2018). It is used for evaluating source in relation with competitive advantage poses
by a nation as well as directions for using that in a strategic manner. This model can be used by
managers of Google for guiding and formulating strategies in regards with approach distinct

nations for investment as well as operating avenues. Four elements of Porter diamond model in
accordance with Google are mentioned below:
Factor conditions- This component is essentially concerned with availability of natural,
capital as well as human resources which is possessed by a nation which aid them in gaining
competitive advantage (Hooper and Holtbrügge, 2020). Managers of Google needs to critically
analyse varied resources while moving to a different country to expand their operations.
Demand conditions- It is imperative for business organisations to access competitive
advantage in regards with their home market (Hult, Gonzalez-Perez and Lagerström, 2020).
Demand conditions essentially concerned with market size, growth rate and sophistication. These
conditions enhance managers of Google to bring innovative practices in their operations.
Related and supporting industries- Presence of international competitive suppliers in a
specified country are considered as helpful as these are cost-effective for them (Khodjayev,
2021). Google collaborate with other browsers of distinct countries in order to enhance
profitability as well as increase their revenue streams.
Firm strategy, structure and rivalry- Competitiveness of a business organisation is
closely depend on formulated strategies as well as structure (Kim, Chiou and Calantone, 2018).
It is important for managers of Google to formulate proper strategies in order maintain
their organisational structure as well as rivalry with other similar corporations.
Porter five forces refers to strategic framework which aid organisations in evaluating
competitive environment of a firm in order to formulate varied corporate strategies (Kolk,
Rivera-Santos and Rufín, 2018). All the elements of Porter five forces in accordance with
Google are as follows:
Competitive rivalry- This force is concerned with number of competitors as well as their
capabilities of presenting a competition to differential companies in market (Li, 2020). Google
has varied competitors like Microsoft, IBM, Apple and many more which led to high
competitive rivalry. Managers of Google have to critically evaluate advanced and new
technologies which are adopted by their competitors. Low switching cost of customers also led
high competitive rivalry to Google.
Threat of potential entrants- This force is especially encompasses of threat of entry of
new entrants in market. This is particularly based on cost and time which are incurred by new
entrant for entering into the market (Le Nguyen, Larimo and Wang, 2019). In relevance with

Google, threat regarding new entrants can affect business operations on a moderate basis. Start-
ups can enter into this industry as regulatory requirements have made it simpler for them.
However, cost related to brand development is high which led start-up enterprises in a difficulty
phase for sustaining their operations in a long term.
Bargaining power of suppliers- This force is concerned with how suppliers can easily
drive their inputs which is affected by the number of service providers in marketplace (Li and
Fleury, 2020). In accordance with Google, this force is weak as there are large number of
suppliers which provides them different types of technology to them. Even Google have their
own technical team which consists of professionals and experts for enhancing their technology.
Bargaining power of buyers- It is concerned with capabilities of customers through
which they can drive the prices of products or services. It is affected by number of buyers, how
important each customer is and cost that is incurred for building a new client base (Luiz, Ganson
and Wennmann, 2019). Due to increased demands of products as well as competitors, buyers
exert minimal influence in relation with business operations. Brand development and viability of
Google is so strong that it led to low bargaining power of buyers.
Threat of substitutes- This force is concerned with availability of closely related
substitute products which poses as a threat for companies offering similar products. In relevance
with Google, substitute goods can have a moderate influence on their operations as companies
can use varied other means for advertising their promotional content such as television, print
media and radio.
1.2: Analyse micro and macro environment of specific company which operates on global level
Aston Martin is a manufacturer of luxury sports cars and grand tourers founded in 1913.
It is considered as iconic global brand paired with style, luxury, exclusivity and performance.
PESTLE analysis of Aston Martin is described below to evaluate its macro environment:
Political- Government plays essential role in making policies and regulations in UK.
Aston Martin is present in several countries and thus have to maintain regulations of each one.
Tensions between political environment and instabilities in global market affects auto mobile
industry growth. The chaos and uncertainty surrounded by the exit of UK from EU caused severe
revenue loses for Aston Martin which also exposes it to global political developments. Due to
armed conflicts going on in UK, Aston Martin had to handle operations in difficult
circumstances. However, Aston Martin has benefited from low taxation policies in UK. This

allows company to maximise their spending in research and development which leads to higher
profits.
Economical- Interest rate, labour conditions, inflation, per capita wage etc. highly affects
companies overall growth in economical context. The exchange rate of UK impacts Aston
Martin investment plans in long run. Government of UK has increased investment in improving
business environment and facilitate good infrastructure which provides Aston Martin access to
utilises better infrastructure to accelerate consumers interaction. The management also exploit
vibrant financial markets and effortless availability of liquidity in UK to expand their business
internationally. But the auto-mobile industry is highly impacted by global economic condition of
UK as at time of inflation, Aston Martin suffered great loses because of low spending rate of
people.
Social- Shift in consumer preferences and maximising disposable income leads to
affecting Aston Martin to great extent. As inflation rises in UK, people's perception towards
auto-mobile industry has changed. The market of used car market continues to grow. But as
people in UK give high preference to experiential products, thus Aston Martin has leverages this
opportunity by building improved customer experience. The trend of migration has impacted
Aston Martin to bring in international operations in more countries.
Technological- Digitalisation and advanced technologies has impacted companies to
develop their techniques to handle global competition (Thanetsunthorn and Wuthisatian, 2019).
UK is considered to be one of the technological innovation centre which facilitate big brands to
shift their studios there. Adopting trends of technologies facilitates Aston Martin to increase
profitability, promotes process of innovation and improves operational efficiency. Aston Martin
takes in continuous improvement in their designing and automation to create fuel efficient
devices. The firm has advance its traditional ways of driving by developing researching about
self driving cars.
Legal- It is related to comply with all laws, regulations and policies made by government
to effectively operate in global market. Aston Martin considers all the legal attributes of
countries the firm strives to open its business in. The firm abide by all the safety and health
norms to safeguard the interest of its employees in business. Aston Martin has undertake
adequate legal protection of its intellectual property and patents to protect its business designing
from theft. In addition to that, quality standards and protecting customers from fraudulent

practices helped Aston Martin to make its brand viable in competitive market. Aston Martin
abides by all the rules of all the nations it operates its business in to stay legal in eyes of law.
Environmental- It is one the responsibility of companies to take in business practices
which do not harm environment. Aston Martin strives to undertake corporate social
responsibilities which allows the firm to practice operations sustainably. The firm has stepped
towards low engine capacity and advanced drive technologies in order to mitigate greenhouse
gas emissions. However, frequent scrutiny by environmental agencies adds cost to operations of
Aston Martin.
Micro environment are the factors which impacts firm's performance such as
stakeholders, suppliers, competitors, market intermediaries etc. Analysis of micro environment in
terms of Aston Martin is described below:
Stakeholders of Aston Martin facilitates firm to operate practices in interest of public.
Efficient stakeholder relationship improves Aston Martin image in competitive market which
positively influences its sales.
Consumers are the biggest part of micro environment which has the ability to decide
firms success or loss. Aston Martin properly conduct a study on their customers and their
changing preferences as well as strives to provide efficient fuel car to attract more customers.
Aston Martin rivals significantly influences market situations by launching new products
and services. These include Bentley motors, Lotus Cars, Jaguar, Ferrari, Lamborghini etc. Aston
Martin has established more than 140 locations globally which helps sales and services of
delivery for new and pre owned models. The production of quality sports cars have provided
Aston Martin competitive advantage over its rivals.
1M1: Ascertaining the extent to which workings related to international environment influence
the success of business organisation
International environment can impact the workings of an establishment in a significant
manner as they have to maintain varied functions like supply chain management, labour supply
and many more. Aston Martin also faces issues in relation with international environment which
have impacted their success. Change in government policies regarding trade barriers and other
related activities can impact the success of Aston Martin. Handling of corporate social
responsibilities in relation to Aston Martin have impacted their operations as well as success in a
significant manner. Their quality-oriented products help Aston Martin to gain success in

marketplace. Handling of corporate social responsibilities in relation to Aston Martin have
impacted their operations as well as success in a significant manner. Their quality-oriented
products help Aston Martin to gain success in marketplace. International environment has led
Aston Martin to gain success as varied forces like political, economical and environmental aid
them in developing strategies for gaining success in their operations.
1D1: Evaluation of the risk involved in operating in an international business environment
Varied risks that are to be ascertained by managers of Google are risks related to politics,
currency and regulatory aspects. They have to operate their activities in varied international
markets which led to take care of regulations framed by differential government (Tolstoy, and
et.al 2021). Fluctuations in currency rates in regards with differential countries can also impact
the operations of Google in an adverse manner. Rapidly changing laws well as legislations can
also poses as a threat for Google as this can hinder their performance as well productivity.
Compliance of rules and regulations help them to face varied risks while performing their
business activities in an effective manner. Managers of Google need to assess varied risks that
are presented while performing their operations in regards with international environment
2.1 Assessment of impact of globalisation and international trade on national economies
Globalisation is considered as important for organisations as it allows them to discover
the ways whereby cost incurred by company is less for manufacturing their products (Nambisan,
2022). It also help in driving global competition which creates a larger variety of choice for
customers to make a strategic choice.
It is considered as beneficial for organisations as it helps in spreading knowledge as well
as technology with increased collaborations in a strategic manner (Šebestová, Rylková, and
Lejková, 2018). International trade refers to a process which essentially concentrates on global
resources, opportunities and threats. Influence of globalisation on national economies are
mentioned below:
Foreign direct investment- This aspect is increasing in a considerable manner which led
to rise of transportation of technology, industrial restructuring and many more. In relevance with
Google, they can enter into this type of agreements in order to enhance their viable practices.

Technological innovation- This element has led to Google on the top of world's leading
search engine thus increase its viability in an effective manner.
Free movement of trade- Globalisation provides free movement regarding products,
services, investment, labour and assets. This has impacted national economies in a significant
manner which leads to opening up of the obstructions in regards with international trade. This
practices aid organisations like Google to create a positive impact regarding quality of life of
individuals.
Impact of international trade on national economies
International trade has a significant impact on national economies growth which led
nations to grow faster, bringing innovative practices, improvising productivity as well as provide
higher income to people (Nuruzzaman, Singh and Pattnaik, 2019). Foreign trade is concerned
with enlarging market in regards with specified country's output. Exports play a significant role
in increasing national output in order to become an engine in relation with growth avenues. Due
to international trade, market become competitive and organisations highly indulged in bringing
innovative practices. Through this, people gets more variety of products or services which led to
enhance global value chain. In relevance with Google, international trade aids them in providing
their advertising services to varied companies residing in distinct countries.
Although, international trade brings varied opportunities, it also brings threats as well as
challenges. Developing companies cannot face competition presented through international trade
in a domestic market (Calabrese, and et.al 2018). Poor connectivity, complicated regulatory
systems can impact business operations of establishments in a significant manner.
2.2 Assess the benefit, opportunities and challenges of globalization and international trade for
specific business organisation
International trade has assisted businesses to expand their operations in every part of
world. Globalization has enhanced engagement of people with companies on worldwide basis. It
has lead to improve connectedness of market across the globe, maximise communication and
business opportunities. Globalization in auto-mobile industry has allowed firms to cater to
different needs of customers according to their preferences. Benefits of international trade to
Aston Martin are mentioned below: