Global Business Sustainability Report: Manufacturing and Strategy

This report delves into the multifaceted realm of global business sustainability, emphasizing the shift from traditional manufacturing to digital operations. It explores the reasons behind this transition, the factors that can impede it, and the significance of international trade. The report analyzes how businesses can enhance their competitive advantage through Porter's Five Forces, digital marketing, and online purchasing. It examines the strategies for internationalization, including exporting, relocation, licensing, and franchising, and how companies can leverage digital platforms for marketing, operations, and online sales. Furthermore, the report investigates the B2B and C2C frameworks, the role of internationalization in small and medium enterprises, and the influence of cultural and knowledge factors, alongside infrastructure considerations. The study highlights the importance of adopting digital technologies to reach a broader audience and achieve sustainable growth.

Global business
sustainability

Table of Contents
Abstract ...........................................................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
There is a tendency of the organisation to move from simple manufacturing operations to
digital formation investment over a period of time. Why is this often the case? What might
slow or stop the process?........................................................................................................4
Why nations trade?.................................................................................................................4
Enhance competitive advantage.............................................................................................5
Why and how firm internationalised......................................................................................6
How to gain and sustain competitive advantage....................................................................6
How to utilise ' Digital' on internationalise and internalisation process.................................7
B2B / C2C frame....................................................................................................................7
SME's and role of internationalisation ..................................................................................8
Digital frame and competitive advantage...............................................................................8
Global strategy and manufacturing process...........................................................................8
Role of strategic thinking:......................................................................................................9
Cultural / knowledge factors..................................................................................................9
Infrastructure........................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Abstract
Global business sustainability is basically coordination & management of social,
environmental & financial demands which is concerned with ethical & ongoing success.
Sustainability is important as it drive an organisation towards growth as well as success. Along
with this, sustainability consist of two categories that is the impact of business activities on
environment and the influence of business on socialites. Global business sustainability assist an
organisation to develop positive brand image in market that directly affect on market position as
well as market share. From the last year, manufacturing industry is still not changed as they
perform only one activity that is transforming raw material into the finished goods. In the present
context, the course of implementing business activities in today's flexible environment has
changed & affect on various elements. Due to digitalisation, the thinking process as well as
buying behaviour of customers & sellers is getting changed as it increases issues of an
organisation while performing operations. Nowadays, it is important for an organisation to not
emphasise on one approach, as it is required to perform & grab growth opportunities that assist
companies to gain competitive advantage at marketplace. The essay involves why organisations
move from simple manufacturing operation to the digital formation with the passage of time. It
also includes the reason why organisation wants to internalised. In addition to this, it consist of
an effective reason why manufacturing companies is focusing on grabbing various opportunities
in order to perform well at marketplace. In the present also, there are manufactures that deals as
retailers & wholesalers who provide goods as well as services offline only. Due to advancement
in technologies and market trends, manufacturing industries is moving towards serving online
service to customers as it helps them to enhance their level of sales and profit. Therefore, it is
important for manufacturing industry who provide offline goods to shift in online process as it
assist them to reach globally and increase their sales.
The report will also involve strategies that help manufacturing companies to make their
presence globally. In addition to this, the report is going to discuss manufacturing process of an
organisation. Moreover, the essay will describe how to use digital internalisation process and
B2B/C2C frame. It also involve the role of internationalisation in small and medium enterprises
that will lead companies to attain competitive edge at marketplace and to gain success in market.
It can be determine that it is essential for manufacturing industries to expand their market and

adopt digital technologies in order to reach maximum number of people and enhance sales in
coming future.
INTRODUCTION
In this modern business era, it has become mandatory for the businesses to opt for digital
platforms along with the traditional business practices. Digitalisation has changed the working
for the business as it has become important for all the businesses to introduce themselves at
online platforms also to gain competitive advantage (Bhagra and Sharma, 2018). This report
undertakes the importance of digitalisation and how can a company gain competitive advantages
from that. The report covers why nations trade and what made them to internationalised, the
global strategy and manufacturing process. Along with it the report also talks about the role of
strategic thinking in digitalising process and the cultural factors affects it.
TASK
There is a tendency of the organisation to move from simple manufacturing operations to digital
formation investment over a period of time. Why is this often the case? What might slow
or stop the process?
Why nations trade?
Trade refers to the transfer of goods and services from one party or person to another
party or person, generally in exchange for money. One party in that transaction is the buyer and
another party is called seller. A country is never fulfilled with all resources, there is some kind of
scarcity of resources present into a country and to fulfil that scarcity the nations do trading. They
do trade when they don't have the resources to satisfies their needs and wants also they don't
have that capacity (Crane and et. al., 2019). A country usually export the surplus of his resources
to other nation and take money for exchange. Trade helps the country in exploitation of
comparative advantage, means the trade encourages the country to get specialize in producing
the goods and services which it can produce or manufacture more effectively and efficiently at
the lowest cost possible. It helps the country in achieving economies of scale. The trade of
resources includes, products, goods, raw materials, technology, skills and knowledge, capital,
finance and humans.

Enhance competitive advantage.
A business can enhance its competitive advantage by performing Porter's five forces
model. This model helps the business in determining the five competitive force that helps in
evaluating industry's weaknesses and strengths. It also helps in shaping an industry. The Porter's
five forces are:
Competition in the industry: In this force, the total competition available into the industry is
analysed along with their ability top undercut a company. The larger the number of competition,
the lesser power it would be available to the companies. As in case of digitalising the business
process will help the company in gaining the competitive advantage. Due to digitalising of
process, the company can updates its products and services at online platforms which will be
available to majority of people. This activity will also increase the sales volume of the company.
Potential of new entrants into an industry: New entries of companies into an industry put
burden onto the shoulders of other companies. They act as an threat for them. The less capital
and time involves in entering of a business in an industry, more will be the new entries of the
businesses (Jarvis and Palmes, 2018). Whereas an industry with strong barrier to entry is ideal
for existing companies. Entries of companies at digital platform is so easy and free of costs that it
has easy entry and exit. As it is free of cost and easy for businesses, majority of business
digitalise themselves. This will create an competition by easy entry of companies.
Power of suppliers: This refers to how easily suppliers can take charge of the cost of inputs. It is
the degree of terms and conditions the suppliers can put in front of businesses. In case of
digitalisation, the suppliers exercises no or minimal degree of terms and conditions for
businesses because the company already has put all of its products at online platform. By doing
such, the company saves the cost of middleman which considers a huge cost for companies.
Power of customers: It is the ability of customers to drive the prices of the product or services.
Too much of competition available into the industry gives the power to the customer to choose
the product among many options available. The customer has the ability to negotiate the prices
and do better deals. Due to digitalisation, many companies put its products and services offered
at online because of this there are many options are available for the customers to purchase. So
that's why the customers exercise some power.
Threat of Substitutes: Substitute goods and services are that which can be place by come other
company's products or services. More the substitute available to the customer, less would be the

prices and visa-a-versa (Kara and Fırat, 2018). As in case of digitalising process, the customers
will get more options to purchase, this provides them with substitutes. Therefore, more
availability of substitute at online less would the cost for the product.
Why and how firm internationalised
The firm or any company internationalize itself for many reasons. These reasons can be
in terms for seeking opportunities which bring growth into the company. Through growth and
diversification, the company can gain higher margins and profits. When a company experience
itself into other markets it gains knowledge about the working of global business method and
environment. The globalization encourages the movement of people from one place to another,
therefore customers who have relocated to abroad can now purchase the products or avail those
services which they used to purchase and avail at their original place. The company or an
industry internationalize themselves through many ways (Mudambi and Puck, 2016). Like
exporting in which the company directly exports its product to another country, relocation in
which the business transfers its part or all of its services at different location which unable them
to gain cost benefit. The company can also opt for licensing and franchising in which one firm or
company permits another firm to license for a particular time period and use these as patents,
trade secrets or as royalty.
How to gain and sustain competitive advantage.
A company can gain and sustain its competitive advantage by analysing Michael Porter
and sustainability competitive advantage. In this model an business can opt for any one of 4
strategies. These strategies are:
Cost leadership: In this the business produce low cost products and gain cost advantage through
it. The company gains the advantage by adopting advance technology or buying raw materials at
cheaper costs and the like. Cost leadership is possible by digitalising of company. When
company digitalise itself it saves many cost such as distribution cost, cost related to physical
stores and so on (Ngai and et. al., 2018).
Differentiation: This strategy is highly valuable by buyers as in this the firm seeks to get unique
and offers unique and different products to its customers.
Focus: The focus strategy has 2 variants: 1. cost focus in which a firm focus on cost advantage
and 2. differentiation focus in which the firm focus at differentiation in its target market. The

companies which have adopt the digitalisation process focus on both cost advantage and
differentiation in its target segment.
Digital process for CA
How to utilise ' Digital' on internationalise and internalisation process.
A company can utilise “ digital ” on internationalise and internalisation process on the following
basis:
For marketing and promotion: The digitalisation helps the businesses in marketing and
promoting of them at the regions and the places there are about to establish themselves. As
digital marketing offers the big scope to the companies in which they can market or promote
themselves at a digital platforms. Digitalisation can proves to be of get help as mass number of
customers or market can get target through it.
Businesses operation: “ Digital” helps the organisation to operates its business at digital
platforms. Operations performs digitally saves the time, money and maintenance of the business
activities. Business operations done digitally also brings effectiveness and efficiency in the
business.
Online purchase: Through digital process, the companies put its offered products or services
online. By performing such, the customers can purchase the goods and services via online. This
saves the cost for the company on many grounds as such transportation cost, the cost related to
setting up of physical stores, the cost associated with middleman and the like (Ponte, 2019).
B2B / C2C frame.
B2B stands for business to business where one business sells its product or services to
other business. Whereas C2C stands for customer to customer where the customers sells its
products and services to the other customer. For example OLX, in which one customer sells its
used things to different customer online. For B2B and C2C, digitalisation plays a major role in
relation to its popularity and easiness. The digitalisation has made such process very easy and
accessible to all. Now the transaction between the businesses have become easy and also now the
customers can sells its products online with the help of many online sites. Apart from it, the cost
of uploading the products with specification is nothing or very much minimal therefore it
encourages majority of population to use digital platform while performing any such activity
(Risi, 2018).

SME's and role of internationalisation
SME's are the small and medium enterprises. These enterprises indulges comparability
low capital and the employees working with them is under 50. For the growth of such enterprises
the digitalisation can plays an important role. Through the proper use of digitalisation they can
market and promote themselves at various online platforms such like you tube, Facebook,
Instagram, twitter, and many more (Roh, Hong and Min, 2014). The SME's can also build their
own sites and through the help of SEO's they can perfectly visible their sites to the targeted
customers so that they can visit the sites and get to know about the company. Digitalisation helps
SME's in other ways like, they can target mass population through marketing and promotion
digitally. This is comparatively cost lower to the companies then other methods for marketing
such as newspaper ads, pamphlets, radio ads, banners at roadside and etc.
Digital frame and competitive advantage
A proper digital framework helps a company in gaining competitive advantage. A lot of
creativity can be done through digitally. If a business properly plans it marketing or promotion
plan about how they will do it digitally can help business a lot. It can also gives growth and
profit to it. Company can also plan for its expansion and diversification through this. Digital
world is getting advanced day by day which allows the companies to adapt these updated
technologies which ultimately will help them (Sambhanthan, 2019). Digitalisation can also helps
them to explore the global market and the opportunities they got to offer to the organisation.
Global strategy and manufacturing process
Global Strategy are the tactics and strategies which are used by the company when they
target for global expansion and diversification. The planning for global strategy is the task of
upper level of management. These strategies are the tactics and plans about how the business will
achieve themselves at global platform. In the strategy, the plan is formed about how the business
with the help of digitalisation performs the globalization of its business. Whereas manufacturing
process is the process or procedure which an organisation undertakes while making or converting
the inputs into outputs (Zhalilo, 2018). There is very close relationship between global strategies
and manufacturing process. The company needs to decide whether it needs to set up its whole
manufacturing unit at different place where it is planning to diversify or it will continue its
manufacturing process at the same place of manufacturing. This will also help the company in
facilitating the necessary path to digitally transforms itself according to the needs.

Enhance / Hindrance
Role of strategic thinking:
Strategic thinking refers to the planning of strategies using innovation, creation, strategic
planning and operational planning to build the strategies of business. Planning for business
activities with strategies help the businesses to develop greater networks, growth and profits for
the business. There is different role which strategic thinker has to perform. He has to
strategically needs to provide mission, vision and values for the organisation. Sometime to
become a change agent he has to strategically plan for the directions and steps he would take to
influence others (Stahl and et. al., 2012).
From where to where?
The strategic thinking is needed at every point of business right from the budding of idea
about starting a business to making an exist of the business from industry. A strategic thinking
helps can organisation in taking it at a total new heights. Planning which considers all the factors
which can affect the working and operations of business are included. All these factors are
external and internal. External factors are the factors which can not get in control by any
business but do affect its activities such as political, economical, social, technological,
environmental and legal factors. Where as internal factors are the factors which a company can
get in control such as employees, operations, infrastructure, working environment and so on.
Cultural / knowledge factors
Cultural factors includes the norms, behaviour, thinking, attitude and ethics of the people
in relation to a particular topic. Cultural factors do affect the business operations and activities.
Companies need to plan their strategies such that it does not harm any cultural group of people.
Strategies planning involves the work of digitalisation, digitalisation of activities should get
bifurcated according to the culture if that particular region or country (Svensson and et. al.,
2018). Where as knowledge factors are refers to the understanding and knowledge of the
organisation in relation to its customers wants and needs. The company studies about the
behaviour and attitudes of its target market and then analyses their needs. From this the
organisation plans its activities and provides the products and services which satisfies the wants
and needs of its target market.

Infrastructure
Infrastructure can refers as a combination of all those resources whether living and non-
living which unable the organisation in operating its business activities in the achievement of its
goals and objectives. Infrastructure is considers as a major factor which help the business in its
development and profitability. The management of infrastructure is very important for business
to get itself succeed in long- term. A ideal infrastructure allows zero waste in the company and
helps the company in better production of products with efficiency and effectively. Companies
who are running its business totally at online platform needs not go give too much attention on
infrastructure because all the tasks are done digitally like going thorough on products, ordering
of products, giving payment for the product (Thomas, Smith and Diez, 2013). All these tasks
does need digital infrastructure. A proper procedures needs to get set to all such activities.
CONCLUSION
From the report presented above, it can be concluded that digitalisation plays a
paramount role in globalising any business (Yoffie and Cusumano, 2015). Through proper use of
digital platform the organisation can perform marketing, promotion, performing of business
operations and activities via help of digital platform. The report also covers the theories of
porter's five force and sustainability competitive advantage theory.

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