Global Business Environment
(Reflective Report Assignment)
Academic Subject: Business
Word Count: 2600
Submitted by: Student
I found the class very motivating and informative and I personally believe that I have built a vast understanding of the concept of Global Business Environment and the effect of globalization on business environment. I have found that my knowledge about GBE has significantly augmented by attending the class. I have figured out that the global practice of businesses has become very much complex by the effect of globalization. Moreover, this class helped me in the identification and implementation of several macro-environmental analysis tools for the analysis of the business environment in global perspective. I was able to understand the concepts of PESTLE and STEEP analysis and the class has helped be to implement the tool in this assignment.
The class helped me to update my knowledge in the areas of international management positions and strategies used by the businesses for the expansion in the global environment. The lecturer has mentioned the variations and challenges faced by the businesses for the global expansion by considering political, social, legal, economic and technological factors of the environment. I was able to develop the understandings of several domains and levels of global business environment. With the help of this class, I was able to understand the challenges and the opportunities faced by the businesses to operate globally. It was demonstrated in the class, that the business considers global expansion in international market as an opportunity and the main focus of the business is to achieve sustainability and growth in the business by operating globally. By this, I perceived that the global business environment may increase the profitability and the stability for the businesses.
The class helped me in various ways to appreciate the significance of global business environment. The lecturer conveyed that the global expansion of the businesses require deep analysis of the market and products and services provided by the existing relevant businesses. It was prevailed that this helps in the production of customized goods to increase the appealing power of the products. I further derived that the globalization has made the business environment more prone to incorporate strategies of international management.
The class helped me to understand the layers of global business environments as well which is composed of macro-environment, industry, competitors associated with the business. I figured out that the macro-environment is composed of several environmental factors which significantly impact the global performance of a business. Those factors include the political, legal, economic, environmental, technological and social, accumulated together affects the health of the business in international market. I was further able to identify the key strategies and implementations which can be used by the businessmen for the globalization of their businesses keeping in mind those macro-environmental factors.
I have identified that the next layer associated with the global business environment is the industry. The lecturer demonstrated that before entering into the global market, it is necessary to conduct a research of the organizations and businesses which are providing the same products and services. I was able to identify the tools used for the analysis of the industries and concluded that Porter’s Five Forces model is best suited for this industrial analysis. After analysing the industries, the businesses are required to identify the key competitors present in that particular international market. I found that competitive analysis helps the businesses to categorize their competitors based on their provision of products and services. This helps the businesses to develop strategies for the successful penetration into the international markets.
The lecturer has presented the concepts of change processes of globalization as well by which I figured out the changes due to globalization may bring risks for the businesses. This class helped me to identify that the change processes of globalization may bring challenges and difficulties for internationalization of the businesses. However, on the other hand, I have found out that change may be advantageous for bringing new opportunities for the expansion of the businesses in global environment. In addition to this, these change processes of globalization also bring threats for the new and existing businesses in the market.
Furthermore, this class helped me to identify the impact of globalization on business organization, societies and governments. This class assisted me to derive that globalization bring out many opportunities as well as the threats for the businesses. Threats imposed by globalization may include the cultural diversification issues as well as security issues. Because any business can enter into any market, however this was concluded that a proper research of the market may assist the businesspersons for successful expansion or penetration of the businesses internationally. Before attending this class, I did not have an idea that cultural differences are an important issue in business environment. These cross-cultural concepts were addressed during the lecture and then I figured out that the cultures present globally play significant role in business environments as well as the governments.
This class also helped me in identifying that global business environment is also associated with the ethical issues. I was able to identify several ethical issues of GBE process such as the entire qualified workforce is switching towards first world countries however, manual workers and low-qualified workforce is experiencing a loss of jobs.
The class assisted me to build an understanding of corporate social responsibility issues of the business environment as well. For example, this class helped me to understand the fact that governments impose some rules and regulations in the business sector to convey environmental and social aims. However, I figured out that the government of a country may violate those regulations and shrink the number of resources that may help in generating revenues for the businesses.
It is noted here that the class has also build my understandings of the global financial crises. Before the class, I did not have sufficient knowledge of the financial crises due to globalization however by attending this class; I have received an immense knowledge on the global financial crises. For example, the businesses started adopting risk management strategies to attain sustainability in the global business environment however this resulted in extra problems for the businesses.
The class helped me to spot and implement the analytical tools for internal and external analysis of the international business environments. I identified that the managers have to incorporate extraordinary analytical skills to face the challenges imposed by globalization. I understood that in order to cater the threats posed by globalization, risk management activities may also be helpful. With the help of this class, we were able to prepare a presentation on GBE process and to analyse the scenarios for Paraguayan Business Market.
As per the knowledge perceived by me on global business environment, I am able to utilize the opportunities provided by globalization in a proficient way. In a future perspective, I will be able to apply my perceived knowledge of globalization in a cost-effective way as well. Before attending this class, I was lacking in my communication skills as well and by attending this study I have also developed by communication skills because of the involvement in group discussions.
The group discussions and the involvement in the class helped me in various ways. I also believe that I have also gained the confidence because of this class. This level of self-confidence will also help me for my professional job interviews. Additionally, I also believe that this will also help me for my future employment as well. After this class, I started to appreciate the role of involvement in group discussion in a class room.
This also played a significant role in enhancing my writing skills as well. For example, I am able to present my views and present in a written format. For the evidence, because of this class, I was able to prepare a presentation on GBE analysing the scenarios of Paraguayan business market by putting into my knowledge and understanding in a written form. In addition, because of this class, I am more prone towards thinking outside of the box and putting into my personal creativity in the topics.
I need to mention here that by attending this class, I was able to identify my strengths and weaknesses related to this course. For example, i was dependent upon the internet and other secondary resources, but because of this class, I am able to implement my own knowledge in a sophisticated and presentable manner. Hence my weakness of dependency on internet and other resources turned out to become my strength. Before this class, I had no idea that I can be creative and utilize my knowledge for a particular study; however, this class helped me to explore my creativity side.
I also believe that this class also helped me in building my time management and skills as well. Because of this class, I am able to manage my time frame according to the nature of the phenomena to be conducted. I started believing that this classroom environment and activities helps in building self-confidence, time management skills and exploration of strengths and weaknesses of the individual’s present in the class.
Serving the life as a student is the long-term process of learning which never ends till the death of the person. However, for becoming an effective student, it is necessary that the students must be good learners and must never end their learning process throughout their life. My course of the global business environment has helped me in understanding the actual context that the formulation of a business is not a piece of cake because it has to face a lot of difficulties and challenges to make it a prosperous one. My teacher, Dr. Marisa Smith was one of the best companions I found who provided us with various opportunities so that we can have a prosperous career path in the future. As previously discussed, the course of a global business environment has introduced with new learning and theories through which I can conduct industry analysis of the international business.
As I have future plans to open a coffee shop in the vicinity of London just like Starbucks with a funky name so I can attract teenagers towards my shop. Moreover, I wish to expand the business in different countries and regions in order to expand my customer base so that I can generate more profit for the business. Through the course portfolio, I was able to learn global business environment process which provides the necessary information related to different sovereign countries apart from a country in which the person wish to build their business. However, through understanding the process of a global business environment, an entrepreneur willing to open a business in different region or country is able to learn the industry norms and the overall attractiveness of the industry in terms of social, economic, licensing, regulatory and technological environments.
The understanding of the global business environment process has helped me in learning different factors and grounds on which the industry analysis can be conducted within a country or a region. Moreover, after the end of the session, I was able to understand the context of macro-environment in the essence of international business enterprises and how the businesses can be managed internationally at the variety of scales such as global, regional and national. The teaching notes made us clear that the global business environment process has recently evolved since the technological advancements as conducting businesses in different countries have become easier for the entrepreneurs. The classes enhanced my understanding as I want to stand at a competitive position in the international market and it also helps in looking at the big picture of the market.
In my opinion, the international business organization requires an in-depth research when moving to a new country for the purpose of promoting the business. It also enhanced my understanding of understanding the layers and main dimensions of the global business environment process with respect to economic, legal, social and technological aspects. The GBE process also helped me in familiarizing with the change process adopted in the complex global situation and further helps in understanding their significant impacts on the organizations, societies and governments. When I searched for the topic of international business environment analysis tools, I discovered a wide range of tools which I found more effective than Global Business Environment as it was only supported by impact and predictability matrix.
Among those tools, I found two tools more interesting and effective in the case of conducting international business analysis for checking the viability of the business. The two tools which I found interesting were entitled as GE- McKinsey nine-box matrix and EFE Matrix which are both used for the industry analysis for the international environment similar to the Global business environment. In this interactive nine-box matrix of GE-McKinsey, it signifies a framework which is designed for the business units which also elaborates that which business unit is most profitable which can expand further into the international market (Quarterly 2008). According to the knowledge I gained through this framework, it helps the managers in elaborating future prospects of the business through which the companies can judge the overall attractiveness of the industry along with the competitive strength of the business within the industry they are performing currently.
For me, the most important aspect of the nine-box matrix is its contribution towards the interpretation of industrial factors which are necessary for any business to consider while launching the business in the international market. Moreover, the McKinsey nine box-matrices are also concerned with the theory building and sense making (Capps and Glissmeyer 2012: 1059). However, the use of this tool enables the process that has been significant for my interest as it can actually contextualize the whole scenario of the industry within those nine boxes which also comments on the business opportunities provided by the international business. The best part in the nine-box matrix is that the business opportunities can be categorized as high, medium and low within the two axes. On the other hand, the GBE process only reflects on the economic, political, social, cultural and regulatory environment of the country in which the business has to be shifted. In addition, the nine-box matrix can provide information relevant to the business environment which in my opinion provides a systematic approach for the projections regarding the future prospects and the overall attractiveness of the market.
Hence, in my opinion, the McKinsey nine-box matrix is also effective in analyzing the attractiveness of the market within the industry in which the entrepreneur wishes to start their business in the international market. The second tool which I found most effective in comparison to global business environment process is the EFE matrix which is the abbreviation of external factor evaluation another most effective tool which can assess the external conditions of the business. In my opinion, it is a good tool to prioritize and visualize the threats and opportunities pertaining to the business (Schuler, Jackson and Tarique 2011: 506). As far as I have studied this matrix, I found it to be more interactive and authentic in terms of identifying the external factors which can affect the business in an international market. The identification of threats and opportunities can be helpful for the businesses and the entrepreneurs who want to open the business in the international market. Being a student, it is necessary to grasp such concepts in order to enhance my understandings in relation to the international market.
The EFE matrix, of course, rests on the application of the development in business strategy domains as it involves a low-level calculation which is important in terms of assessing globalization trends, policies and regulations, technology implementation and protection of rights of the people within that particular country (Amatulli, Caputo and Guido 2011: 61). This matrix is much different with the global business environment as it involves the accurate calculation as in the matrix the weight is given to identify opportunities and threats with respect to the given industry chosen by the entrepreneur to open the business in the international market (Sohel, Rahman and Uddin 2014). In this regard, I find it much important to understand the upcoming threats and opportunities faced by the business in the particular country. Moreover, the risk factors associated with the business can also be highlighted in this context which is helpful for the business. In the contrast of the global business environment process, it involves the assessment of different factors related to the industry which is also necessary to understand the international business.
As I reflect on the strengths of the EFE matrix, this matrix has provided me with a great understanding of the international business as I associate it with the current course material as it helped me in encountering the problems I faced during the course. Moreover, the understanding of these two tools was considered as the value addition in my knowledge of international business as I look forward to opening my coffee shop in the London. So an in-depth understanding of such tools would allow me to pursue my career in the desired field but on the other hand, I have to work harder in order to pursue my dreams.
- Amatulli, C., Caputo, T. and Guido, G., 2011. Strategic analysis through the general electric/McKinsey Matrix: An application to the Italian fashion industry. International Journal of Business and Management, 6(5), pp.61-68.
- Capps III, C.J. and Glissmeyer, M.D., 2012. Extending the competitive profile matrix using internal factor evaluation and external factor evaluation matrix concepts. Journal of Applied Business Research, 28(5), p.1059.
- Quarterly, M., 2008. Enduring ideas: the GE–McKinsey nine-box matrix. McKinsey Quarterly.
- Schuler, R.S., Jackson, S.E. and Tarique, I., 2011. Global talent management and global talent challenges: Strategic opportunities for IHRM. Journal of World Business, 46(4), pp.506-516.
- Sohel, S.M., Rahman, A.M.A. and Uddin, M.A., 2014. COMPETITIVE PROFILE MATRIX (CPM) AS A COMPETITORS’ANALYSIS TOOL: A THEORETICAL PERSPECTIVE. From The Editor’s Desk.