Unit 5.2 Business Organizations in a Global Context

1. Unit 5.2 Business Organizations in a Global Context
BY Ahmedi

2. Table of Contents
Introduction..................................................................................................................................... 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

3. 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 1
Key differences between organizations working in different sectors, industries
The 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.

4. 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 scale
At 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 Responsibilities
Name Description
Supply Chain management Construct the transparent relationship with suppliers
and customers
Operations Reduce waste by increase the operational efficiency
Financial Increase revenues and generates funds and
investment for the organization
Risk Eliminate the risk profile with the help of risk
management
Marketing 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

5. 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 globally
HR 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

6. give the valid yield particularly in cross-utilitarian organization case. An IT association tries to
give their trusts in applications and new advancement.
Activity 2
An Analysis of the performance of a national economy impacts on the activities of business
organizations
For 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 business
The 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

7. 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 3
An explanation of the implications of global integration on business organizations
The 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 businesses
Today 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.

8. 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 & Services
It 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.

9. 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 4
Review of the global environment
The 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 operations
The 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

10. 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.
Conclusion
The 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.

11. Reference
Conklin,D.(2011) 'The global environmentof business:Newparadigmsforinternationalmanagement',
IVEY BusinessJournal,pp.32-43.
Frynas,J.G. andMellahi,K.(2015) Global StrategicManagement,OxfordUniversityPress.
Gong, Y. (2013) Global OperationsStrategy:Fundamentalsand Practice,SpringerScience &Business
Media.
Manova, K.(2009) 'CreditConstraints,HeterogeneousFirms, andInternationalTrade', TheReview of
EconomicStudies,vol.80, no.2, pp. 711-744.
Ng,J.J.M. andLi, K.X.(2003) 'Implicationsof ICTforknowledge managementinglobalization',
Information Management&ComputerSecurity,vol.11,no. 4, pp. 167-174.
Quack,S., Morgan, G. and Whitley,R.(2000) NationalCapitalisms,GlobalCompetition,and Economic
Performance,JohnBenjaminsPublishing.
Rosenthal-Sabroux,C.andGrundstein,M.(2008) 'A knowledge managementapproachof ICT', VNU
Journalof Science, NaturalSciencesand Technology ,vol.24, pp.162-169.
Zhou,P.,Ang,B.W. and Zhou,D.Q. (2012) 'Measuringeconomy-wideenergyefficiencyperformance:A
parametricfrontierapproach', Applied Energy,vol.90, no.1, pp.196–200.