Unit 5.2 Business Organizations in a Global Context

BY Ahmedi

Table of ContentsIntroduction......................................................................................................................................1

Activity 1.........................................................................................................................................1

Key differences between organizations working in different sectors, industries........................1

An assessment of the responsibilities of organizations operating on a global scale....................2

An evaluation of strategies employed by different organizations that operate globally..............3

Activity 2.........................................................................................................................................4

An Analysis of the performance of a national economy impacts on the activities of business

organizations................................................................................................................................4

An explanation of measures taken by governments to influence the activities of business........4

Activity 3.........................................................................................................................................5

An explanation of the implications of global integration on business organizations..................5

Review how global economy affects businesses.........................................................................5

Assessment of Information and Communication Technologies facilitates globalization............6

Assessment of the effect of international trade on domestic products & Services......................6

Activity 4.........................................................................................................................................7

Review of the global environment...............................................................................................7

Propose strategies to address issues affecting global business operations...................................7

Conclusion.......................................................................................................................................8

Reference.........................................................................................................................................9

Introduction An entity formed legally having objectives of earning profits and carrying on commercial

business is called an organization. There are number of the reasons that associations go

worldwide. The principle design is development and development of the business to different

nations. This will help the business to acquire more benefits. This permits the business to make

different wellsprings of incomes in different countries (Quack, Morgan and Whitley, 2000).

Mergers, securing, direct speculation and take over are the techniques used to go globally. This

additionally affects the guardian's economy nation and facilitating nation likewise through

different means. Then again, this likewise expands the opposition in the business sector.

These sorts of associations predicts on frameworks of law administering contract and trade. Any

business made under the law is a lawful substance. There are distinctive sorts of the business

working in the neighborhood and universal markets. Some works in neighborhood business

sector and some at national levels. Titan substances and business associations are working in

different nations too. The multinational organizations are working more than one countries and

countries. There are distinctive types of the business. These are sole proprietorship, organization

and corporations.

Activity 1Key differences between organizations working in different sectors, industriesThe building businesses give careful consideration on the advancement and item improvement.

The business' achievement or the association relies on upon the presentation of the new items in

the business sector. For instance, Samsung run business portfolio and that involves around 80

countries. The organizations incorporate into the vehicles business set up their plants and

assembling units in diverse nations. Parts fabricate in distinctive nations and send them to

different parts of the world for amassing.

This strategy is cost effective for the organization. For example, Ford Company has units in

USA, Germany, Turkey, South Africa, Brazil, China, United Kingdom and many others. Same as

Toyota is working in 27 countries (Gong, 2013). The construction business includes the

development of the infrastructure and building in the countries.

The opposition with others is vital for the association at worldwide level and additionally

neighborhood level. Different associations use different procedures for working in the universal

environment.

For instance, vehicles industry, telecom, electrical building industry, administration industry and

others

In the administration business, the principle capacities are to give the administrations to

organizations and last shoppers. The administration business incorporates, instructive

establishments, healing facilities, handy person and others (Conklin, 2011).

An assessment of the responsibilities of organizations operating on a global scaleAt the point when a business or association goes worldwide it, build the business' obligation in

the worldwide business sector. These include the obligations in connection of social, social and

hierarchical environment. The responsibilities of the organization are shown in table.

Table

Organizational ResponsibilitiesName Description

Supply Chain management Construct the transparent relationship with suppliers

and customers

Operations Reduce waste by increase the operational efficiencyFinancial Increase revenues and generates funds and

investment for the organizationRisk Eliminate the risk profile with the help of risk

managementMarketing Increases the brand awareness, image building,

credibility, product and business promotion

Human Resource Improve the competency of employees, enhancing productivity and efficiency of employees through employee satisfaction

Environmental Responsibilities

Numerous associations need to confront diverse ecological issues particularly the assembling

association. Diverse sorts of the gasses produce and lethal squanders hurt the earth. Accordingly,

this is the association's obligation to deal with this entire thing. The utilization of vitality will

adjust and unsafe substances ought to appropriate arrange the things. Different types of the

natural assurance organizations are working for the public’s welfare and the earth. The waste

from the production lines expands the contamination in air, water and land (Frynas and Mellahi,

2015).

Corporate Social Responsibility (CSR)

Another vital obligation of associations working all around is social and corporate obligation.

These incorporate the lawful, moral, optional and financial desires of the public from

organization. The CSR infers the obligation to the association that must be moral, humanitarian

and moral obligations. This is moral obligation of the association, which it needs to utilize

legitimate process and procuring ought to make on lawful premise. The operations of the

associations must comply with law.

An evaluation of strategies employed by different organizations that operate globallyHR department of the organization has to work for the new resource hunt. The rules and

regulations make by HR department and implemented in the organization. The important point is

that the policies are according to eh nature and culture of the hosting country. Therefore, a single

company has to make different policies for operating in different countries (Conklin, 2011).The

employee retention is main problem for the organization when it operates in an international

market.Sometimes the human capital is outsource to speed up the operations of the business

(Gong, 2013).

The associations go worldwide needs to face a firm rivalry in the business sector. An association

needs to keep up and manage their position in the business sector by utilizing and executing

different techniques. The upper hand accomplishes with help of the extraordinary assets of the

organization. The associations with adaptable society and environment reactions have rapidly to

change in nature. The association capacities can change into hierarchical techniques when go

worldwide. Some of the time the association has faces absence of vital trusts to create essential

hierarchical backing processes. Regularly organization capacities work alone and it neglects to

give the valid yield particularly in cross-utilitarian organization case. An IT association tries to

give their trusts in applications and new advancement.

Activity 2An Analysis of the performance of a national economy impacts on the activities of business organizationsFor this, they need to construct stock levels, which apply weight on costs. Along these lines,

expenses may start to sneak up. Unemployment will lessen in light of the way that affiliations

will use more work to deal with the addition in demand. The external environment gives the

case, the push and the most essential component those helpers in the game plan of an association.

Survival of the affiliation depends endless supply of the relationship to the external environment

and the ones that disregard to modify are discarded from the business (Manova, 2009).

Performance of the national economy influences the business' activities affiliation. Right when

GDP of a nation dials down, will be fall famous for their stock or organizations and as needs be

salaries will fall and general incomes may be pulverized if they endeavor to cut expenses to grow

deals. Unemployment may start to crawl up. When GDP of a nation will rise at a speedier rate,

the affiliations endeavor to offer more items and organizations.

An explanation of measures taken by governments to influence the activities of businessThe policies and rules of the governments also influence on the activities of the business

organizations these are as follows:

Policy on international matters: Government controls the import and export of the country.

There are various policies formulates to promote trade. The government makes the policies to

import and export of services.

Policy regards Region: Financial institutions and European Union supports the trade and

commerce in their regional territory by providing the funds, which have the high rate of

unemployment. New industries and plants are constructed in those areas so that the

unemployment can be controlled. Moreover, these can impacts the economy of that country.

Tax Regulations: Diverse sorts of charges exacted on the business. These expenses are the

wellspring of incomes for the state furthermore adds to the group. Consequently, government

uses this cash for the state's welfare and the general population. New tasks began with the

venture of cash shape the assessments that assistance to balance out the nation's economy.

Besides, this additionally serves to makes new livelihood opportunities.

Inflation Rules: The administration controls the costs of distinctive items and administrations.

The Monetary Policy Committee (MPC) of the national bank of state controls the premium rates.

This likewise makes the general population ready to interest in diverse business. The Small and

Medium Enterprises urges individuals to set up new business that gives chances of livelihoods.

Activity 3An explanation of the implications of global integration on business organizationsThe global market is full of the diverse suppliers and customers. Therefore, this is important to

provide the new products and innovative commodities to meet the needs and demands of the

customers. The quality products and services attracts the customers. Cost leadership strategy is

feasible in the developing countries.

Outside trade has end up being more basic to world economy starting late. Improvement has

represented in passages and imports of items and organizations. The pay made from the passage

shapes the bit of GDP and imports make pay out of the country, so to get a complete picture of

what sum is conveyed by the economy pay from the imports are deducted from interchange

classes of use. The GDP of the nation and facilitating business sector affects the association's

operations (Rosenthal-Sabroux and Grundstein, 2008).

The procedure connects with the outside environment of market. One of the hardest troubles

standing up to any affiliation is Global business coordination. It cause relationship to take off

indispensable upgrades in fundamental environment, affiliations need to overcome enormous

differences in lingo, society rules and regulations. Corporate level systems are made when

business go worldwide.

Review how global economy affects businessesToday numerous worldwide associations concentrate a few capacities into joint administrations

and outsource different others to outsider administration suppliers. Associations are receiving

worldwide business administration’s models i.e. they are concentrating on adjusting business

system, enhancing choices identified with portfolio venture and reallocating current use.

The global economy affects the business and economy of the countries. The financial crisis of

the Euro in 2009 effects many countries that are connected with them for trade. Same as the

economy down turn of the country also effects the economy and politics of the country. Business

associations are utilizing technique of outsourcing to accelerate business advantages, for

example, lower expense of operations and enhanced business forms.

Assessment of Information and Communication Technologies facilitates globalization The IT advancements like web, distributed computing, CSR, ERSP, and e-trade changes the

nature and environment of the business. Online networking on web influences the business'

advancement and item mindfulness. The innovation likewise gets advancement the items and

administrations. Besides, diverse sorts of programming are accessible in market that are steady

and aiding for the associations. The diminishing part of limits has led to the expanding thickness

of worldwide rivalry. Globalization is considered as the significant driver of mechanical

advancement. The worldwide environment is experiencing extraordinary changes with the

advancements in of data and correspondence advances (ICT).

New improvements in ICT are going about as an essential power for the procedure of

globalization. The IT technologies like internet, cloud computing, CSR, ERSP, and e-commerce

changes the nature and environment of the business. Social media on internet influence the

promotion of the business and product awareness. The technology also brings innovation in the

products and services. Moreover, different types of software are available in markets that are

supportive and helping for the organizations (Zhou, Ang and Zhou, 2012).

Assessment of the effect of international trade on domestic products & ServicesIt can achieve obliteration and weakness of regular resources. There will be absence of benefits

for the occupied association. Operation and era viability expands by different strategies.

International trade brings on depletion and decimation recognizing resources. The advantage

driven countries give license over-abuse of their regular resources, which may beyond question

lead to authentic normal damage. Private stock should battle with remote items.

Overall trades have positive furthermore negative effect on family thing and organizations.

Overall trade helps the countries to win by increasing reasonable involvement in items and

organizations in which they have a relative purpose of inclination over distinctive countries.

Thus, it is perceptive for countries as they can have useful involvement in a sure thing and can

import the things, which are extreme to deliver in their own specific country.

Activity 4Review of the global environmentThe countries includes in the trade made payments with the exchange rate of their local currency

with dollar. The interest rates also influence in the business and organization (Frynas and

Mellahi, 2015). Mostly the organizations go to the developing countries because this save lot of

money and production cost for the organization.

This is imperative for the association to have the audit and examination of the business sector

environment where the business is working. The primary variable put into thought is the

monetary development. The GDP in universal business sector impacts the development of the

business.

For example, GDP of UK has coordinated development in European Union. The trade rates of

diverse nations likewise influence universal exchange between the nations and associations.

Government figures the approaches that bolster consistent and competitive money of the

association. Ordinarily in the global business, sector the exchange and business done in US

dollar.

On the other hand, this also increases the revenues and profits for the organization. The reason is

difference in the economy, exchange rates and political position of hosting country. The foreign

direct investment in the country helps to stable the economy of the country by creating new

opportunities of employment (Ng and Li, 2003).

Propose strategies to address issues affecting global business operationsThe proposed strategies for the business activities are planning for the long term and other is to

deal with actual market failures. These are for the different industry of business.

Strategies relevant to Industry In the international market, there is stiff competition. The

competitive environment is very healthy in the global environment. The new opportunities for

the business start-up are available for the entrepreneurs. A strategy must follow for failures and

recognizes the improvement may strike in an unpredictable place. On the other hand, technology

sector, supply chain management and finance are the areas of attention that have real and early

impact.

Trade Bank: For the business, this is mandatory that long-term finance facilities must make easy

for the organization. In international market environment, the businesses face problems in raising

finance. In the long-term, the loans receive for the five-year plan. The investment and funds are

necessary for the growth and development of the business.

Segments: The mutual strategic partnership makes with key sectors like automotive, life sciences

and aerospace for the business development and growth. The organizational capabilities are used

for the formulation of the business strategies.

ConclusionThe structure and environment of the organizations is important to put in consideration. When a

business starts to earn money, the management tries further growth and development of the

business. Organizations with flexible structure can easily adopt or adapt the change. The uses of

the technology in business environment bring a dramatic change. About every business, starts

from the local market and then continuous growth take it to the global market. The competitions

with others are necessary for the organization at global level as well as local level. The

organizations have to go under the change and transformation process in order to approach to the

international markets. Many organizations have to face different environmental issues especially

the manufacturing organization.

Reference

Conklin, D. (2011) 'The global environment of business: New paradigms for international management', IVEY Business Journal, pp. 32-43.

Frynas, J.G. and Mellahi, K. (2015) Global Strategic Management, Oxford University Press.

Gong, Y. (2013) Global Operations Strategy: Fundamentals and Practice, Springer Science & Business Media.

Manova, K. (2009) 'Credit Constraints, Heterogeneous Firms, and International Trade', The Review of Economic Studies, vol. 80, no. 2, pp. 711-744.

Ng, J.J.M. and Li, K.X. (2003) 'Implications of ICT for knowledge management in globalization', Information Management & Computer Security, vol. 11, no. 4, pp. 167-174.

Quack, S., Morgan, G. and Whitley, R. (2000) National Capitalisms, Global Competition, and Economic Performance, John Benjamins Publishing.

Rosenthal-Sabroux, C. and Grundstein, M. (2008) 'A knowledge management approach of ICT', VNU Journal of Science, Natural Sciences and Technology , vol. 24, pp. 162-169.

Zhou, P., Ang, B.W. and Zhou, D.Q. (2012) 'Measuring economy-wide energy efficiency performance: A parametric frontier approach', Applied Energy, vol. 90, no. 1, pp. 196–200.