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Introduction - Managing Resources in an International Business Environment (FN7226)
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The global business environment is defined as an aspect that comments exhibiting the opportunities and challenges that businesses have faced or face while incorporating operations in the whole global market. This majorly seeks out the interconnectedness of each and every region of the world; this means that the companies that face issues also meet to face similar problems in other countries. The word global environment predicts worldwide environmental factors that are subject to be beyond the margin or scope of the nation or community. Considering the raw material, labour supply, work expectations, wages and reliability of the supply chain that is the key global factors impact the overall operation of the company.
The business accumulating its productions is predefined to assume a more comprehensive platform to subject to gather customers of any service or product. This basically looks forth to the power to assure the growth and development of the businesses and nation. Multinational corporations refer to terms that are showcases businesses that have a high presence in world commitment. These corporations are highly strong and they are one of the most powerful organisations that exist in the country they are regulated with direct investment within the developed foreign countries creating millions of jobs reflection to higher wages that is accumulating pace in cultural work. It has been reported that the companies process higher efficiency and wider market share that influence to seek lesser production costs. This affects the overall strategies, decisions and processes of the companies and businesses, which are inbound with the factors such as political, economical, social, technological, environmental and legal factors impacting the business internally and externally. Each and every factor has an high influence over the performance of the companies or organisations within their decision-making and overall operation.
Decision-making is a key factor through which the companies regulate their activities even in the most unsaturated market and the market that replaces high competition factors. Rise of the revenue growth and development of the company and crafts healthy relationships with the customers for a longer period of time. Competitors and consumers are a source that leaves an impact upon the organisation or business as most of the time a business is committing well or not accumulates the response that the customer sets in the market after they went through their purchase journey.
Customers in different parts of the world set new trends that influence the organisational activities and foreign strategies to seek through them to further reframe their policies and procedures to implement plans according to the market trends. This facilitated the business to be get survived in the market or be disrupted by the factors exhibited in the environment. The report will be a personal reflection on the topic global business environment and multinational corporations and its impact on their decision-making and integrating subjective problems or values while entering into new markets. The report will also discuss theory and real-life examples from the company that is establishing its operations globally in relation to its organisational practices.
I have acknowledged a key function within my studies and work is that the power of the global business corporations is an authentic scene and the businesses that are operating globally are consuming effective marks in the segment of profit and revenue incomes, to assess the emergence of a market impression and to look forward to a high market captures. I have also recognised that multinational corporations play an effective part where the operations of the businesses are functioning in other countries more than the home country. This highly contributed to the growth of the economy of that specific country and to the morality of their existence (Radovi?-Markovic and Vuji?i?, 2019). I realised that the businesses that are expanding globally are forfeited to uplift the area of the revenue stream and are subjected to generating more revenue than operating in the home country. This has been dedicated to being the vast worldwide topic that meets the demands and everyday factors of the individual and business owner operating globally. I have confronted the fact that multinational companies are also known as stateless, transnational and international corporate organisations.
The multinational corporation has a high-end structure through which it has the capacity to serve the highest economy and make a positive impact overall upon the different operations. About 82% of businesses over the world are implemented to add investing in international markets that will briefly enhance the business portfolio that the company is carrying within the market or in the industry (Kokodey and Lomachenko, 2018). Within my academic impressions, the professional benefits that I have gone through is the essence of information and changes that triggers every business in the world and the way they need to align their team in course to avoid effective discrepancies. I researched and wanted to know more authenticness that the topic carries with it, so reflecting upon the global business atmosphere I went through the factors that provide an impact upon the functionings and operations that can even lead to opportunities or can be adapted as a weakness to the company. I crafted information upon the political factors as this has a higher influence upon any business productions, as there can be either more increase of the high opportunities or could lead to acute more threats looking forward to the potential growth of the company or organisation.
I realised that the political factor might impact the economy of the country as it influences the revenue stream, higher rise of value over the additional tax upon the products and acquainted with effective business rates. The second and most effective one that is also triggering the cultural work and global business environment of any company is economic factors (Brenner, 2018). This has a higher interpretation over the development and disruption of a company's operations, for example, a company like Apple has been recognising the sources of growth and opportunity, as the executive manager recalled that if the economy of the country is stabilised that it forms to the greater business atmosphere that enables a high strengthening growth. I surfaced that this source uplifts the momentum of a stable economy which serves lucrative disposable incomes, raises business opportunities and makes strong exceptions for the targeted customers and clients. This is the impact on the business environment through the source of economic factors.
I acted more strongly and being on the professional front I have gained a lot of knowledge which increases my level of effectiveness and efficiency that will lead me to perform higher company activities around and across the internal and external atmosphere of the company's operations. I gathered knowledge about the socio-cultural factors that are impacting the trend which is subjecting more business effect that is reflected through the expectations settled by the customers and to seek through consumer behaviour. All the cultural input and local expectations are a source to enhance the business growth in the industry, as about 78% of the changes have been meant to be seen through consumer preferences and taste, which is impacting the overall sales of the companies (Bhagra and Sharma, 2018). These are the macro factors that impact the external atmosphere of the company which also calls for technological factors. This has been a key transmitter that regulates the company to perform its activities through online commitment.
According to the source (Kasemsap, 2018), author conveys that about 88% of the customers that shop online are meant to increase the company's exposure and profits by 2x, for example, companies like Primark looked through the progress they made by investing in the technology that made them know deep insights about the customers purchasing behaviour and the way they dealing competitive edge in the industry. Growing cloud computing advancement has been the major source through which they recalled more enhancements in financial and economic conditions and are impacting the external motive of the company. This has been a major factor that has been influencing the performance of the global business environment and impact upon the decision-making of the companies. The E-commerce industry has been the fastest and most highly developed industry that has been creating an evolutionary change in the exception of the overall business world and is acquired to give competition to the other companies that are situated in the industry (Dayton et al., 2018).
I have gathered more knowledge about the global business environment through the environmental factors that reflect the point where it integrates the information about the concern of safety and more of renewable energy and sources that will strongly connect the customer, stakeholders and investors with every company following the policies for a long period of time. Cost in planning and implementing opportunities for green products are accounted to leave a positive impact on the economic and financial growth of the company and the country.
I adhered to the fact that there is a high influence on the overall operation of the business and upon their decision-making. The next influence that the companies carry upon the global business atmosphere is of legal factors they are considered to be followed by every multinational and national corporation to ignite a strong base of workflow and cultural impacts adhering to the policy regulated by the country and then by the company to its culture. I recognised that the government intervened to help the company to grow further in the country to raise the power of the economy, as they are articulated with additional cash and reflect upon the cost to collect the resources of companies for ultimate production.
Personally, I have committed to learning so much through the commencement if the task that made me increases my research skills and In-depth understanding skills to look after the topic that calls out for global business environment exception set out in the industry. Analysing the fact creates a space where multinational corporations are exhibited to look forward to investing more in the national markets but they need to deeply collect information regarding competitors, government regulations, suppliers and consumers before they take steps to invest (Wei et al., 2018).
Competition has a high intensity to leave an impact overall on the discussion integrated by any company reflection to expand into the new national markets. Companies that are enabling the same products in the industry face serious issues as they evolve high competition between them that stops the overall growth and power held in the industry. Alternative products have a strong prosecution that improves the capacity of the business to maximise sales within a provided market (Shams et al., 2021). The next that I recognised has a chance to impact the production and decision-making of a multinational corporation is suppliers as if any company are forfeited to adapt lower relationship bonds can impact production units and can have an impact on a lower stock that can lose the behaviour of the customers and can trigger the pace of customers marketing strategy.
Consumers are the key factor that has a wider influence on the companies as multinational companies and upon the global business atmosphere. As most of the time, consumer withdraw their purchase which leads to an initial consequence impacting the brand structure to accommodate power in the industry looking for potential and target customers, about 75% of international clients wants to enhance the value and adopt the more fast process to get their products delivered to their given period of time(Dzwigo et al., 2020).On the other hand, decisions get suffered as because companies are ignited to serve lesser power within their customer service, therefore customer lacks to solve the issue and suffers from the adequate response from the customer care team of the companies. This is harsh when an employee seeks to be irresponsible and commits a negative workflow in the culture, disturbing the brand relationship effectively subject to promote more rate of burnout and dissatisfaction. I have successfully made a good impression and accumulated information on factors and sources that impact the decision and contribute to segmentation around and across the global environment where all the business operates and functions their productions.
I was fascinated by the idea of articulating theories and practices and I came across the famous theory “the theory of acquired advantage” which has a good influence on business that implied to enter new markets overseas (Cohen, 2018). This theory predicts countries that can enhance their capacities by participating in global business by generating compelling advantages correlating to their final resources. It accommodates linking up with the practices made by the companies after applying such theory to its operations. For example, Tesco has applied this theory to its culture where it adapts the responsibility to recruit highly skilled manpower which is an original asset to the company, this regulated to adapt 76% of customer relationships and development through the power of hardworking manpower.
They seek to export labourers from other countries like China and Russia to make a high-quality business venture within the targeted countries. Tesco accumulated university graduates to participate in their business events and get to know the way they are regulating their productions in the industry in course to the effect driven by both macro and micro atmosphere (Younas, 2021). The second example that relates the link between the theory and practice led by multinational companies such as Unilever plc, shows the power of great culture and workflow, as they are regulating policies that unite their employees to the super chain of the company. About 68% of companies have implied to lose strength within their quality of culture by participating in the global business era.
They briefly targeted Russia and Australia to save their business culture from getting exploited as countries like UK and Japan have already announced getting exploited by different sorts of cultural aspects. Managing and coordinating the culture and the way teams and individuals are participating to generate ideas and innovation so that the company can regulate its productions to the other countries successfully and survive for a longer period of time. This I saw that theory is being used to fulfill the practices made by the company overall. I assured, that the impact lies in the maintenance that the company accumulates to expand its operations to developed or global countries. I have reflected upon another example of the company Asda, which has been managing its business strategy through implementation applied to the geographical positions.
This creates a space of advantage for the company for market share accommodation and manages to serve products or items that are appreciated in relation to different seasons assumed by the specific country that has been listed by the company Asda for business expansion. They need to look after the eastern and western parts of the countries which uplift the chances of demands being a great factor for companies' survival for a longer period of time (McMaster et al., 2020). They are assured to keep items and products in demand of the customer in every season or in relation to their lifestyle. I have uplifted knowledge and information that has helped my professional development and has meant to support my integration through the business performance and impact that stands as a valuable aspect to starting a business and making it survive to the last. Improvement of time management and self-awareness has gradually enhanced through the completion of the project and acquired an incredible momentum to take risks that could be a part of both personal and professional life. Within my week 7, I have made to learn regarding the authenticness of a financial statement analysis that most of the businesses uses within its daily operations and within its organisational activities. Through the two definite articles, I have been informed that an financial statement analysis are used to evaluate the overall performance value of the company by looking forth to the balance sheet, statement of the cash and the income statement. Further I learned that through the use of number of techniques those incolves vertical, ratio and horizontal analyses that the investors look after for investing in the company’s stock or product.
I have discussed a personal reflection of mine on the subject of the global business environment and about the way multinational corporations get impacted by the macro factor or global atmosphere factors upon their decision-making and over their entrance to the newly developed markets. The global business environment within the several sovereign countries that are reflected factors explicit by the home atmosphere of the company or organisation is subjected to influence upon decision making relating to the capabilities and use of the resources. I further conclude that the report summarised the impact of the global business environment could be positive and negative, which basically calls to contribute to the development of infrastructure, new advanced technology, generating more jobs, implementing more managerial skills and bringing out more capital from several other countries through functioning to export the products.
I surfaced light upon multinational corporations which also have advantages and disadvantages, as multinational corporations can acquire production costs that can be decreased, as most of the multinational companies set their plants within several countries that support the overall production to make it more cost-efficient. Good quality products are a significant factor that implements through the act of multinational corporations they search for better quality raw materials that uplift the brand names in the local and also within the global era. The factors that deeply integrate and trigger the performance of the company decision-making process reflects to political, economical, social, technological, environmental and legal. The political factor stood to make a rough impact upon the expansion as Brexit being one of the examples to the multinational corporation has left them to stock products and customers from the EU country. This has made it lose about 68% of its revenue- growth and potential customer base. Further, I acknowledged that this impacts the overall production of the company and is to engage more upon the local taxes that moreover contribute to the economic development and growth. The economic factor also leaves an impact on the production of the company influencing the supply chain and market expenditure of the company. COVID-19 has been a great factor that impacts traditional marketing over digital marketing, as multinational corporations deeply need help from online convenience to make the business survive in the market. The socio factor made it more negative influence upon the components that are not confined to social needs that they show over the company products and services.
The influence of consumer behaviour and preferences are a factor that changes the trends adapting in the industry. This predicts to meet the demand of locals and a customer from different parts of the world to acute all the major satisfaction they need to keep upo0n the company for continued growth in the new markets. One theory that I have used above, the theory of acquired advantage, has been discussed that the companies from the real world use to reunite the highest necessities that lead their production to great suitability and reliability. I conclude that businesses need a proper team that can act upon the roots of the cause and manage coordinators to look after the variations that are impacting the financial, decision making and overall operations of the company.
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