International Business Competition

International business is conducted all over the world and the size of the market is very large. Main transactions include the transfer of goods and services, technology, knowledge, etc, and also involve exports and imports. The main features associated with international business include large-scale operations, a sensitive nature, restrictions at the international level, keen competition, mostly dominated by developed countries, and integration of economies of many countries. The global environment is developing challenges to industries due to the increase in the level of competition. Threats and opportunities are present in the environment and companies are taking advantage of such opportunities but on the other hand level of competition is so high that has become difficult to survive in the market. In this report, several tasks will be undertaken which include the identification of elements that have a direct impact on industries, how government policies affect business enterprises and the personal traits & behaviors of entrepreneurs required to run a firm.

TASK 1

There are many elements present in the external environment that have a direct impact on the organization. These factors include taste and trends, budget and economy, competitors, and technology. They directly affect the working of the firm and there is a need to analyze all such factors in order to work smoothly and with better efficiency (Ball, 2006). In the case of taste and trends, they are rapidly changing and all the industries operating in the retail sector have to keep check on the preferences of the consumer and current market trends. Like with the help of social media sites companies can analyze the present conditions of the market. the next element budget and economy have a direct impact on the firm if the economy is highly growing then consumers will prefer to buy high-priced products and vice versa. It directly depends on the purchasing power of consumers which suggests whether to buy high-quality products or not. The cost of the product should be less than the competition then only the market will consume it (Ball and et. al, 2012).

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Competition is the next element which is a curse to the new business entering into the market as companies operating in the past have well-established markets and a strong customer base so in order to compete with them new industry has to develop unique marketing strategies that would encourage customers to buy that brand. If in that particular market, competitors are not present then the company can easily establish and expansion opportunities will increase.

Challenges present in the global market can act both as advantages and disadvantages to the firm. It depends on the firm what kind of strategies are adopted to reduce the impact of major risks present in the global market like competition. The only way to beat competitors is to develop unique products in the market that contain different characteristics that are not available in the market easily. Adopting these techniques is supportive as firms can gain a competitive advantage and the loyalty of consumers will also increase (Geringer and Minor, (2010). In the modern era level of technological advancement is very high and companies are adopting new modern styles to produce products and services.

Adopting new techniques serves as a promotional tool and the company becomes a market leader as the cost of production decreases and profit increases with the rise in sales. However, it requires a large investment and time in implementation. Fewer employees are required in production as a major part of work is carried out by machines with minimum effort (Hallows, Wolf, and Marks, 2011).

Other companies present in the same sector can adopt better technological methods as they may have having strong financial base and sound economic conditions which encourage them to rapidly adopt such methods. In the case of new firms it is not possible as they do not have an adequate amount to invest in purchasing new technology in starting profits are not so high which prevents them from performing such development activities. Political factors need to be considered while conducting operations of the enterprise environmental laws the firm has to adopt activities that cause less pollution and will save the environment (Hill, 2012). Firms have to follow recycling techniques in order to reduce the burden on the environment. By adopting this style both government and the company will benefit as sales will increase due to eco-friendly products and the need of government authorities will also be fulfilled.

TASK 2

There are many factors present in the external environment that have a direct impact on the working of the organization political, legal, environmental, etc. in the case of a new venture government can directly influence the policies of a new enterprise as every firm designs its own strategy and policies to work. The policies of the company are linked with its operations and they provide full information regarding the organization. The government of the country has a direct impact on the policies adopted as the company has to work under guidelines issued by the government (Huff, 2009). The policies issued by the government like taxes, rules, regulations, and political stability have a direct effect on the organization as the firm has to consider all these factors and if these factors are ignored it can lead to unexpected outcomes.

The government issues several types of laws like regulatory, labor, tax, and reporting which are necessary to be followed by companies. Regulatory laws are basically some standards that affect how businesses function in specific situations (Iyer, 2009). The industries laws issued are regulatory in some way and several categories of legislation are present that are applied to certain industries. It also includes environmental laws and building code laws which are set by the federal government and state governments. Regulatory laws are also present for international trade and most types of business licensing (Kapoor and Sherif, 2012).

TASK 3

In order to work in a challenging environment entrepreneurs have to follow different methods in their working style so as to cope with changes and reduce the level of risk. Personal traits and behavior of entrepreneurs in the present market include drive and energy, self-confidence, high initiative, and personal responsibility, internal locus of control, tolerance of ambiguity, moderate risk-taking, low fear of failure, use of feedback, continuous pragmatic problem-solving, use of resources, clear goal setting and self impose standards (Sharan, 2006). These are some of the personal traits that are essential to be present in modern entrepreneurs.

Many of these characteristics are self-explanatory and are linked with each other. Traits present within the entrepreneur help him to work better and fewer efforts are applied in work due to the unique qualities present. In the above report, certain threats were discussed like competition, technological advancement, government factors, economic factors, etc. All these threats present in

Businessmen can easily survive in situations of perfect competition due to features like low problem-solving and clear goal-setting. Proper knowledge is available regarding the use of resources will help to gain a competitive advantage and the cost of production will also be reduced by this. Features like drive energy, and personal responsibility will help to work with more efficiency and outcomes arrived are above expectation level. It will become easier to face any type of challenge in the market. Successful entrepreneurs have clarity of vision by which they can clearly define where the company is today and where it will be tomorrow (Svensson, 2002). This feature can directly support as more employees get attracted, investors can be easily convinced and it brings more partners. Close attention is paid to details which helps in analyzing the major problem faced and helps in reducing the impact of that issue. The style adopted by entrepreneurs is more flexible and it can help organization in every way as government rules and regulations change rapidly in that case working style can be changed easily in order to work under those guidelines (Wang, 2013).

CONCLUSION

From the above case, it has become easy to analyze the impact of the international global environment on a particular industry. Several factors are present in the market which has a direct impact on the firm and increase overall risk. Governmental factors develop hurdles due to which it becomes difficult to work as a firm has to work under such guidelines and follow rules, and regulations issued. Environmental laws are regulated with the main aim of saving society from operations of industries like pollution; waste etc. organization has to work according to environmental laws like producing eco-friendly products and adopting recycling techniques in the method.

Technological factors serve both as advantages and disadvantages as the level of advancement is increasing due to which firms have to adopt new working styles and help to work better with fewer efforts. But all these techniques require a large investment. So firms have to keep a check on all the important factors as they directly affect the operations of the enterprise and if all the factors are taken care then it will become easy to gain a competitive advantage.

REFERENCES

• Ball, A. D., (2006). International Business: The Challenge of Global Competition. 9th ed. Cram101 Incorporated.
• Ball, D., and et. Al., (2012). International Business. 13th ed. McGraw-Hill Higher Education.
• Canals, J., (2014) Global Leadership Development, Strategic Alignment, and CEOs Commitment. Journal of Management Development. 33(5).
• Chaiprasit, S. and Swierczek, W. F., (2011). Competitiveness, globalization, and technology development in Thai firms. Competitiveness Review. 21(2). pp.188 - 204.
• Cool, K. and Goddard, J. G., (2006). International Business: Theory and Practice. M.E. Sharpe.
• Dunning, H. J., (2010). New Challenges for International Business Research: Back to the Future. Edward Elgar Publishing.

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