International Business Environment: Techniques and Impacts

This report provides a comprehensive analysis of the international business environment, starting with an evaluation of business techniques such as PESTLE and Porter's Five Forces for analyzing the global business landscape. It assesses the impact of globalization and international trade on national economies, exploring both positive and negative effects. The report delves into various organizational structures used by ventures operating internationally, including flat, hierarchical, and multidivisional structures. It evaluates the risks involved in international operations, such as foreign exchange, political, diversity management, and operational/financial risks. Task 2 focuses on the micro and macro environment of Ford Motor Company, utilizing SWOT and PESTLE analyses. The report discusses the benefits, challenges, and opportunities presented by globalization. Finally, it analyzes the implications of cultural and regulatory diversity for ventures in international markets, highlighting the importance of corporate social responsibility and sustainability, and addressing potential conflicts between corporate strategy and ethical responsibilities. Desklib provides access to this and similar solved assignments.

INTERNATIONAL BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
AC 1.1- Evaluating business techniques used to analyse international business environment...3
AC 2.1- Assessing impact of globalization & international trade on national economies..........4
1D1- Exploration of organizational structures of ventures operating in international markets...5
2M1- Evaluating risks included in operating in an international environment...........................6
Task 2...............................................................................................................................................7
Micro and macro environment of the Ford motor company........................................................7
The benefits, challenges and opportunities provided by the globalization..................................9
TASK 3..........................................................................................................................................10
Analysing implications for ventures of cultural & regulatory diversity in international markets.
....................................................................................................................................................10
Advantages of the corporate social responsibilities and sustainability that will help in
achieving the goals of the Marks and Spencers ........................................................................12
the potential conflicts between corporate strategy and ethical social and sustainable
responsibilities...........................................................................................................................13
CONCLUSION..............................................................................................................................13

INTRODUCTION
International business environment encompasses different types of factors that exist
around a company which operate their business and manage ventures growth in global context.
This term refers to surrounding atmosphere in which an international organization establish their
businesses and run the same in effective manner. Each factor include in this type of environment
put direct impact on success & growth of companies, whether it is large or small, public or
private. It is important for organizations to consider all the factors in appropriate manner. The
current assignment will be based on specific topic that discuss above in describe manner. The
study will explain business techniques utilized to analyse global business environment, impact
of globalization and international trade on national economies. It will also define the macro &
micro environment of a named global venture company. Furthermore, the report will also
specify challenges, benefits and opportunities of globalization as well as global trade for
organization. Lastly, the study will justify implications for ventures of regulatory and cultural
diversity in international markets. It also highlights importance of corporate social responsibility
& sustainability in supporting venture success. The assignment will clarify potential conflicts
between corporate tactic and ethical social & sustainable accountabilities.
TASK 1
AC 1.1- Evaluating business techniques used to analyse international business environment
In the world of business, there are several forms of techniques, strategic frameworks and
models available that utilized, especially in case of analysing business environment, whether it is
related to national or international terms (PESTLE analysis, 2022). PESTLE is one of those key
approaches or business tools that includes six types of factors and each factor is may have power
to influence or impact firms, not matter how vast it was, in scope and market size. The best thing
about chosen technique is that it may enable management of a company, to gain more and in
detail information about macro environment of an industry, in which they may operate and
sustain from specific time duration. Pestle analysis stands for political, economic, social,
technology, legal and environmental factors. Another key aspect of this model is that is it quite
easy to utilize or apply in the context of determining significant forces, that may influence firms
and put impact on their effective management practices.

PESTLE analysis may facilitate an appropriate understanding of wide international
business environment and also encourage the essential development of strategic as well as
external thinking. The implication of chosen model in regard to a firm may enable firms to spot
ventures opportunities that they may grab in effective manner. While, it may encompass some
drawbacks as well that also affect the similar concept as the positive elements does. For example,
it may do not specify the extent to which a factor put impact on organizations, which is important
for management to determine and understand the same. It can be said that risk of capturing more
data by using PESTLE analysis may lead to paralysis by overall business environment analysis
in the context of international market.
Another approach or technique that may utilize in the context of similar purpose,
regarding which the above model may apply is Porter's five forces. It may drive the attention of
companies toward developing better understanding about competitive environment in a sector
that establish in global level.
AC 2.1- Assessing impact of globalization & international trade on national economies
There are several factors exist in the business world that put direct impact on national
economies, either in negative or positive manner. For example, globalization is the best example
of external factor that affect economic growth and progress under national boundaries. It is
defined as procedure of conducting import and export practices in the context of quality product
and services by the organizations, beyond national frontiers. It may influence positively upon
national economies in term of providing chance to expand ventures out of the home towns and
regions in the new market, where growth chances are accessible in bulk. It is fact that by
expanding businesses, and reaching international market, individual person or an entrepreneur
may provide a lot of benefits to their economy in form of increasing employment opportunities
and GDP, which may utilize in society and economic well-being (SALTAMARSKI, 2021). It
can be said that globalization may cater free movement of investment and trade, as well as
labour utilization in ethical manner, which in turn provide unpredictable benefits to
governmental bodies.
Via this factor a country's economy grow rapidly in the global context as it may enable each
person to gain the key advantage of working in a progress firm or to establish their own outlet,
where people may reach easily and purchase products that they tend to buy. While, globalization
may put negative impact as well on national economies in form of increasing trade barriers that

lead to decrease market expansion process of company and create challenges in growth of
economy.
International trade also impact similar concept as it may eliminate actual wages in varied
industries, leading to a loss of income for a segment of target market or population (Bontempi
and Coccia, 2021). However, cheaper import activity may reduce domestic consumers prices and
magnitude of this influence may wide than any other impact that occur via wages. Increasing
custom duties may lead to decrease national economic growth in ineffective manner.
1D1- Exploration of organizational structures of ventures operating in international markets
While operating into global market, it is essential for enterprises and firms to select
specific organizational structures that accessible in the number of formats. Flat legal structure
is the best example of a company structure that may allow a company to run and manage their
business operations with fewer employees as chosen structure may enable management to work
with limited number of human resource (Lee, 2022). It may enable them to engage few numbers
of candidates in management of specific venture along with one or two executive and front-line
workers. Hierarchical is another business structure that most of the companies the corporate
world may utilize, for purpose of achieving strategic aims and objectives (Shi and et.al., 2021).
With this element, firms may expand their ventures in appropriate manner, which in turn provide
a lot of benefits in term of increasing productivity, profitability and performance level. Multi-
divisional organizational structure also provide unpredictable benefits to a company, when it
may use the same and apply appropriately (Gong and Sickles, 2021). It may include divisional
strategic that may drive the attention of management toward dividing wide work autonomously
and in effective manner that help to complete each task. The best thing about current legal
format of business is to have excellent deal of controlling whole tasks and work.
2M1- Evaluating risks included in operating in an international environment.
It is quite challenging for any organization to operate their venture within international
market, as it encompasses varied forms of challenges and risks that may put negative impact on
success of ventures. These risks are the following;
Foreign exchange risk-
It can be said that when a currency value in a nation may change, it may directly affect
international business sustainability and productivity in negative manner. It may lead to decrease

organizational profitability and operational effectiveness (Nobanee and et.al., 2022). Any form of
fluctuation in the context of current risk category may put impact on success factors of ventures.
Political risk-
Another term that may fall under the category of risks faced by a firm in international market is
current one. According to that, unpredictable change in regard to governmental bodies, their
decisions related to trade, tax, etc. may put negative impact on international business success,
which is not suitable for a company sustainability and growth in the market.
Diversity management risk-
It is one of the biggest and most adverse affected risk that may put highly negative impact on
organizations, especially those who may operate internationally (Nobanee and et.al., 2022). As it
is challenging for human resource department to manage workforce, among which each
candidate belong to different nations or regions and have faith of specific cultural values. It may
create conflict in the workplace in some cases that bring more complications to sustain and run
ventures in international environment.
Operational and financial risk-
Along with above, the current risk is also included in procedure of business operation in an
international environment. It may impact negatively upon firms in term of failing in process of
sustain ventures into global context, because of not having appropriate plan and strategies.
Task 2
Micro and macro environment of the Ford motor company
Micro and macro environment refers to the environment that has direct impact on the
business activities of the company. The factors that are affecting the micro environment of the
company can be analysed by SWOT analysis. SWOT analysis is a strategic tool that helps
identifying the strength, weakness, opportunities and threats of the company.
Strength
Strength provides competitive advantages for accomplishing the goals and objectives of the
company (Benzaghta, and et.al., 2021). It has huge market share in the industry as well as in the
global market. It is providing wide range of variety in the car and other vehicle to its customers.
The reputation of Ford is providing greater advantages to it as because of its marketing and
advertising that has helped in the increasing the customer loyalty.

Weaknesses
weaknesses refers to the limitations that are face by the company in providing the services to
the customers as compared to the competitors (Teoli, and An, 2019). Ford's brand image has
been harmed due to the recalling of the Fords' vehicle from the market as there was defect in the
manufacturing of the products, This had a negative impact on the image of the Ford motor
company. As result of which the customers of the ford has considered its services as bad. The
company is lacking on the part of the innovations, the technological development of the ford is
slow as compare to other motor companies.
Opportunities
These are favourable external factors of the company, that helps an organization to grow
and survive in the competitive market. The Ford can increase its business by using the market
penetration and product development. In the market penetration, the company can increase its
dealership in the market. And by introducing new products in the market it can avail the
opportunity of attracting more customers to its outlet. The production cost of the Fords' product
is high, so by reducing the production cost it can expand its business.
Threats
Threats for the company refers to the factors that has a negative impact on the working of
the business (Puyt, and et.al., 2020). The company has major threat from its competitors as they
are engaged in the major marketing activities, and they have more advanced technology than
Ford. The competitors of the Fords are Toyota, apple and google.
Macro environment is defined as the factors that affects the every part of the business
such as customers, employees, competitors, suppliers etc. The company analysis its macro factor
by applying pestle analysis on the firm. The PESTLE analysis of the Ford motor company is as
follows:
Political factor
It refers to the level of the government intervention in the businesses of the country
(Yusop, 2018). The political factor through which government can interfere are tax policy, trade
restrictions, political stability, environmental law, labour law etc. The political instability in the
UK has negative impact on the sell of the ford's products. As the restriction on the trade
agreement has increased that has lead to the reduction in the demand of the products in the other
countries.

Economic factor
economic factors refers to the impact on the business due to change in the consumer
spending, investment decision of the consumers, interest rate, inflation rate etc. In the recent
years, the Ford has witnessed decrease in the sell of its products all over the world. The consumer
disposable rate has the great influence on the spending of the consumer. As the income of the
consumer is high they tend to spend more and the demand of the car tend to increase.
Social factor
Social factors are those factors that has impact on the lifestyle of the society. The Ford
motor company provides its products in many countries and every country has different market
needs. The demand of the country is required to be analysis accordingly. The most basic way of
attracting the customers is by undertaking the CSR activities. To generate more consumer
satisfaction they are providing after sell services that has generated higher customer attention.
They are focusing on providing vehicles that are renewable and provides sustainable
development.
Technological factor
It defined the factors has influence on the sell of the products by adapting technological
innovations and advancement in the organization. There are many factors that has affect Ford
motor company are raise in the use of social media has provided a platform for marketing its
products. Technology has made it easier for the Ford to promote and adopt digital marketing and
gaining the higher consumer attention towards its products. The technological development has
also helped in uninterrupted distribution channel and increasing the market share of the company.
Environmental factor
The factor relating to the ecological development are considered in this factor (Çitilci,
and Akbalık, 2020). Climate change has huge impact on the growth and expansion of the Fords
business. The company can reduce this impact by offering new vehicles that can run on electricity
and that helps in the sustainable development of the company. The company has adopted various
activities for promoting the sustainable development. It has adopted many measures for reducing
the wastage and recylcinng the products.
Legal factor
It refers to the rules and regulation that requires to followed by the company for the
growth and survival of the company in the competitive market (Matović, 2020). As the company

is dealing in the manufacturing of the products that needs to be secured by obtaining the
copyright. It has to comply with the intellectual property rights, act. And as it is dealing the
products that generate pollution in the environment so it has to comply with environmental
protection regulation of the country.
The benefits, challenges and opportunities provided by the globalization
Globalisation refers to the interdependence and interaction among the countries across
the world (Jones, and Kierzkowski, 2018). Globalization is important for every business as there
are many advantages of operating its business at international level. The globalization has
provided a chance to explore the different and new markets across the world. This will result in
the attracting more customers for the products of the Ford motor company. Ford motor has also
developed new way of producing the products of the company as providing products in the
different countries will provide new ways of developing its products. Globalisation has helped
in increasing universal standards for the company that has helped in gaining higher competitive
advantage across the globe.
\Challenges
Along with advantages of the globalisation, there are certain challenges as well for
operating its business in the international market (Bailey, and et.al., 2021). For promoting
globalisation the company has to incurred huge investment to remain ahead in the competition.
Setting up the branch of M&S in the country, the company is require to pay taxes, wages and
for assigning new partners for the company is a costly process. The company needs to work in
such a way that it does not have negative impact on the environmental factor of the country.
This the biggest challenge that all the firms has to face while entering into the new market.
Opportunities
The international trade has open various opportunities for the M&S, by operating its
business at the global level it has made M&S a brand that has helped in gaining the
customer loyalty. Globalization has increased the employment opportunities for the
citizens in the country as M&S is required to appoint more workforce for operating there
businesses in the other countries. It will provide opportunities for growing and
establishing its business in the other countries. For globalizing the work of the company,
the company has to use digital platform and promoting its products on the social media

that enhance the customers and will increase the sale and brand image of the company. It
will motivate the company introducing the new products in the market.
TASK 3
Analysing implications for ventures of cultural & regulatory diversity in international markets.
Cultural diversity is one of those factors that is important for any organization and their
management to take into their consideration and understand well (Raewf and Mahmood, 2021).
As it may affect the way firms grow and succeed in the specific sector while running and
managing ventures into international markets. Cultural diversity drive the attention of manager
and leader toward building wide and strong workforce, among which each employee may belong
to specific culture and have faith on that particular term that is quite common. It is necessary for a
company to implicate this form of diversity in the work areas, because it may provide them
chance to progress and achieve strategic aims, in effective and appropriate manner (Mousa,
2021). It can be said that cultural diversity may put positive impact on success of firms in term of
increasing organizational productivity, performance and profitability level, even better than the
other companies that also exist in the same market (Won, Hwang and Chng, 2021). It may affect
customer behaviour in positive manner in term of enabling candidates to understand the needs
and expectations of consumers regarding products and services that they may expect to purchase
and use appropriately.
On the other hand, cultural diversity implications for ventures may lead to decrease
profits and revenue as it may create challenges for companies to understand the cultural values of
each customer and employees and then take any action accordingly. It may consume a lot of time
and efforts as well that is not suitable for rapid and smooth growth of organizations, especially
that expand and run in the international market.
Regulatory diversity is defined as set of legislations and laws that drive the attention of
companies toward conducting ethical and sustainable practices in effective manner, which is
quite essential for them to do that. The implication of this term may enable ventures and drive
their concentration toward complying with different types of laws that may play vital role in their
growth & success in the world of business. For example, Equality Act 2010 is the best example
of regulatory framework that also include in diversity of legislations. This law may put positive
impact on a company in term of enabling management and employees to feel productive and

pleasant. It encompasses provisions that totally ban age discrimination in the workplace against
adults candidates in provision of public function and services.
Data protection Act 1998, is another regulatory concept may affect current management
practices after implication in the work area (What is the Data Protection Act 1998, 2021). As it
may create to protect personal data and important information stores on computer and any other
systems in a company. It may build positive brand image in the international market, in form of
making management capable and drive their attention toward conducting ethical practices as they
may use strong password and effective systems that help to prevent employees and customers
data, which is quite essential for them to do without making any mistake that lead to decrease
organization organizational productivity, profitability, performance and success factor
effectiveness.
Employment Rights Act 1996, evolvement in regulatory concept may make this
framework diverse, because it may affect the way employee act and work in the same workplace,
where other are also working in order to achieve strategic aims and objectives (Employment
Rights Act 1996 (1996 c 18), 2022). This Act covers different concepts and terms such as
redundancy payments, zero hour agreements, protection of wages, unfair dismissal.
Advantages of the corporate social responsibilities and sustainability that will help in achieving
the goals of the Marks and Spencers
Corporate social responsibility of the company plays a vital role in creating the brand
image of the company (Fisch, 2018). Marks and Spencers has always taken its responsibilities
towards its customers, employees and society. Working in the responsible way has a great impact
on the customer loyalty. It helps in building the reputation of the business and provides
competitive advantages to M&S. It also helps in attracting the finances for the business as the
responsible company will likely to attract more investors than other competitors of the firm. The
company can grab the opportunities for expanding its business across the world. It helps in
attracting new talent in the firm for performing the day to day task of the M&S. By adopting
waste management activity as the CSR activities of the M&S it will also help in reducing the cost
of the maintaining and disposing waste of the company. Corporate social responsibility helps in
retaining the employees for a longer period of time and helps in attracting the skilled and talented
employees for the company. As the Marks and Spencers works in the various dimension of the

products it requires to have employees that are skilled and talented. CSR activities helps in
improving the performance of the employees it has encouraged them to work effectively and
efficiently for achieving the goals and objectives of the firm.
The sustainability practices are more important for spreading awareness for protecting the
environmental aspects of the country (Jamwal, and et.al., 2021). The Marks and Spencers is
providing the products that are carbon free and will help in sending no waste to the lands. The
company is using those products that promotes sustainability. By providing the services with the
quality, products that are eco friendly. The innovations and creativity in providing the goods and
services of the Marks and Spencers has helped in the sustainability for achieving the goals and
objectives of the company.
the potential conflicts between corporate strategy and ethical social and sustainable
responsibilities.
The CSR activities are adopted for maximizing the profits of the company for the success
of the company (Sánchez‐Torné, and et.al., 2020). Sometimes, these activities are in the
conflict with the corporate strategies and objectives of the company. The value and ethics
of the society may differ from the overall goals and objectives of the company (Sharma,
2019). Most of the projects lacks in the tangible way to fall under the values that are
incorporated by the company. As there are differences between the preferences and tastes
of the consumers and the ethical behaviour adopted by it. It helps in the strategic
decision-making process that has to be taken according to the CSR activities that is not
possible every time. The amount spend in these activities is sometimes required to spend
for the growth and expansion that will create hindrance in the sustainable development. It
will sometimes go beyond the requirements of the organization and will lead to reduction
in the market share of the company.
CONCLUSION
The report concluded that Ford motor company is affected by the micro and macro
environment of the country. By adopting the corporate social responsibilities company has
increased its brand image across the world. CSR activities are essential for all the companies to

grow and survive in the market. Furthermore, the corporate strategies must be made keeping in
view the ethical and social responsibilities of the firm. It is providing competitive advantages to
the ford motor company as well. The technological development will help in gaining more
customers and increasing the market share in the international market. The globalization has
impacted the business of the company in a positive way, it has also helped in increasing the
national economy of the country. Globalisation has also helped in increasing the employment
rate of the country. The report has concluded that flat structure is the best organisational structure
among the other structures. For incorporating various advantages a company can adopt divisional
structure for expanding its business in the international market. For operating the businesses in
the international market the company has to face many risks and financial risk is the most basic
and complex risk among the all. Additionally, culture diversity plays an important role in the
growth and expansion of the business.

REFERENCES
Books and journals
Bailey, M. and et.al., 2021. International trade and social connectedness. Journal of
International Economics. 129. p.103418.
Benzaghta, M.A. and et.al., 2021. SWOT analysis applications: An integrative literature review.
Journal of Global Business Insights. 6(1). pp.55-73.
Çitilci, T. and Akbalık, M., 2020. The Importance of PESTEL Analysis for Environmental
Scanning Process. In Handbook of Research on Decision-Making Techniques in
Financial Marketing (pp. 336-357). IGI Global.
Fisch, J.E., 2018. Making sustainability disclosure sustainable. Geo. LJ. 107. p.923.
Jamwal, A. and et.al., 2021. Developing A sustainability framework for Industry 4.0. Procedia
CIRP. 98. pp.430-435.
Jones, R.W. and Kierzkowski, H., 2018. The role of services in production and international
trade: A theoretical framework. World Scientific Book Chapters. pp.233-253.
Matović, I.M., 2020, September. PESTEL Analysis of External Environment as a Success Factor
of Startup Business. In ConScienS Conference Proceedings (pp. 96-102). Scientia
Moralitas Research Institute.
Puyt, R. and et.al., 2020. Origins of SWOT analysis. In Academy of Management
Proceedings (Vol. 2020, No. 1, p. 17416). Briarcliff Manor, NY 10510: Academy of
Management.
Sánchez‐Torné, I., and et.al., 2020. The importance of corporate social responsibility in
achieving high corporate reputation. Corporate Social Responsibility and Environmental
Management. 27(6). pp.2692-2700.
Sharma, E., 2019. A review of corporate social responsibility in developed and developing
nations. Corporate Social Responsibility and Environmental Management. 26(4), pp.712-
720.
Teoli, D. and An, J. 2019. SWOT analysis.
Yusop, Z.B.M., 2018. PESTEL analysis. COMRAP 2018. p.34.
Bontempi, E. and Coccia, M., 2021. International trade as critical parameter of COVID-19
spread that outclasses demographic, economic, environmental, and pollution factors.
Environmental Research. 201. p.111514.
1

Gong, B. and Sickles, R. C., 2021. Resource allocation in multi-divisional multi-product firms.
Journal of Productivity Analysis. 55(2). pp.47-70.
Lee, S., 2022. The myth of the flat start‐up: Reconsidering the organizational structure of start‐
ups. Strategic Management Journal. 43(1). pp.58-92.
Mousa, M., 2021. Does gender diversity affect workplace happiness for academics? The role of
diversity management and organizational inclusion. Public Organization Review. 21(1).
pp.119-135.
Nobanee, H and et.al., 2022. Bibliometric Analysis of Foreign Exchange Risk. Bibliometric
analysis of foreign exchange risk. Journal of Governance and Regulation. 11(1). pp.86-
99.
Raewf, M. B. and Mahmood, Y. N., 2021. The Cultural Diversity in the Workplace. Cihan
University-Erbil Journal of Humanities and Social Sciences. 5(1). pp.1-6.
SALTAMARSKI, D., 2021. WINE SECTOR ANALYZED THROUGH PESTLE ANALYSIS
AS A PART OF THE STRATEGIC MANAGEMENT. Journal of Sustainable
Development. 11(27). pp.75-86.
Shi, S and et.al., 2021. Scaling behavior of stiffness and strength of hierarchical network
nanomaterials. Science. 371(6533). pp.1026-1033.
Won, D., Hwang, B. G. and Chng, S. J., 2021. Assessing the effects of workforce diversity on
project productivity performance for sustainable workplace in the construction industry.
Sustainable Development. 29(2). pp.398-418.
Online reference
Ford., 2020.[online]. available through<https://corporate.ford.com/>
Employment Rights Act 1996 (1996 c 18). 2022. [Online]. Available Through:
<https://www.lexisnexis.co.uk/legal/legislation/uk-parliament-acts/employment-rights-
act-1996-c18>
PESTLE analysis. 2022. [Online]. Available Through:
<https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-analysis-
factsheet#gref>
What is the Data Protection Act 1998. 2021. [Online]. Available Through:
<https://www.itpro.co.uk/data-protection/28085/what-is-the-data-protection-act-1998>
2