19 Pages
4720 Words
Introduction Of Global Business Environment
One of the most recognisable brands in the world is headquartered in the United Kingdom. The corporation has a hand in numerous industries, including those related to food and drink, housewares, beauty, and personal care. It offers a large selection of products from numerous well-known manufacturers. This organisation has gained recognition for its commitment to sustainability and corporate social responsibility, the firm also has extensive international operations and a lengthy history. According to Hamilton and Webster (2018) London is home to its main office. By taking measures to lessen its impact on the environment and boost economic growth in the communities where it operates, the company has risen to the top of its industry. Because of its global scope, this company has the means to cater to a diverse clientele. The firm's dedication to innovation and responsiveness to market needs has kept it at the forefront of the consumer goods industry for decades. As a result of the staff's hard work, the company has expanded steadily and now sells high-quality products to a vast global clientele.
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Introduction to the company, including relevant market, environmental, and competitive factors
Globalization implies for the cross border transactions which is based on some specific principles such as international trade, FDI, flow in capital market, technology diffusion etc. In other words, globalization represents an international network which is highly aligned with economic and social system. Moreover, it is mainly driven by the changes take place in the cultural and economic aspects (Beumer, Figge and Elliott, 2018). Theories of globalization mainly include constructivism, political realism, Marxism etc. Socio-cultural aspects of globalization tend to make focus on sharing knowledge and value in international market. On the other side, economic dimension emphasizes on the movements of goods and services to increase living standard of people resides at global market. By this, firm would also become able to get high margin through serving more customers.
Key factors that drive globalization are enumerated below:
- Firm gets high economies of scale when it operates at large level. In this way, globalization facilitates cost reduction and profit maximization to the large extent.
- Saturation in home market is also recognized as one of the main factor which encourages business unit to operate at overseas level (Factors That Have Contributed toGlobalisation, 2023). Meanwhile, by operating at large level company can increase market share, sales and profit margin.
- Gin order to get tax benefits business unit also gets motivate to explore business activities globally. Further, supportive legal and other government policies also drive global operations significantly.
- In addition to this, by using digital marketing tools organization can promote its products or services at global level. Thus, by enticing customer's demand and offering innovative products firm can attain success in global market.
This London, United Kingdom-based firm is a global leader in the production of consumer goods. The company has a long, illustrious history that has helped it rise to the top of the international corporate world (Jermsittiparsert and Wajeetongratana, 2019). The company has a diversified portfolio of globally renowned brands and operates in a number of industries, including food and beverage, cleaning supplies, and beauty and personal care goods. The company proves its capacity to effectively negotiate the challenging global business environment by analyzing the crucial market, environment, and competitive issues. The market component is first and foremost important.
Second, the company gives careful regard to the business environment (Krupskyi and Kuzmytska, 2020). The corporation prioritizes sustainability and corporate social responsibility, demonstrating the growing significance of moral and ecologically responsible behaviour. In addition to improving environmental and social results, the company's sustainable sourcing efforts, waste reduction programs, and social welfare projects help strengthen the company's reputation and brand image. Last but not least, in the context of international commerce, competition is crucial. In every industry it competes in, the company confronts opposition from both domestic and foreign firms. Due to competition from both domestic and international firms, businesses are challenged to improve their productivity, advertising strategies, and product offerings on an ongoing basis (Baena, 2018). The business has a competitive edge in the global market because of its capacity to adjust to shifting customer expectations, take advantage of expanding markets, and efficiently manage its supply chain. A number of important variables contribute to company success in the global business climate. Its broad market reach, emphasis on sustainability, and dedication to innovation enable it to successfully negotiate the challenging global marketplace. The company remains a dominant force in the consumer products sector by monitoring and reacting to market developments, environmental considerations, and competition.
Critically analyze the key opportunities and challenges for the organization
Understanding these elements is essential for determining the company's strategic posture and its capacity for long-term success and growth.
The company has the chance to take advantage of emerging economies with rising disposable incomes and expanding populations. These markets have tremendous opportunities for market expansion and revenue growth, particularly in areas like Asia and Africa.
- Innovation and product development:
Company can innovate and create new goods that meet changing customer tastes by utilizing its excellent research and development skills.
The company has the chance to further strengthen its reputation as a responsible and ethical corporation by taking advantage of the growing customer demand for environmentally friendly and sustainable products.
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Challenges:
- Intense competition:
The company competes against both national and international brands in markets that are extremely competitive. Maintaining brand loyalty while consistently inventing, and selling items successfully and remaining one step ahead of the competition is the difficulty.
- Changing consumer preferences:
Rapid variations in consumer trends and tastes make it difficult for the company to predict and adjust to these changes (Rickley, 2019). To comprehend shifting client expectations and guarantee that its items remain relevant, the business must spend in market research and consumer insights.
The company has a huge worldwide supply chain, which can provide difficulties for sourcing, distribution, and logistics. Regulatory and political environment; the company is impacted by different political and regulatory frameworks as a result of operating in several nations. Regulations, trade laws, and geopolitical dynamics may change.
Companies must continue to be adaptable, creative, and customer-focused in order to navigate these difficulties and take advantage of possibilities. The company can position itself as a leader in the global consumer products sector while overcoming the difficulties associated with operating in a dynamic business climate by consistently investing in research and development, and aligning with environmental goals.
The complexity of strategic challenges including associated risks, diversification and supply chain flow faced by organisations when operating in a global environment
Understanding the complexities of company's operations and its capacity to successfully navigate the global terrain needs a thorough evaluation of these difficulties.
Company's international activities come with a number of changes. These include regulatory changes, currency swings, geopolitical unpredictability, and consumer instability (Bhagra and Sharma, 2018). Consumer spending can be impacted by economic downturns in important areas, which can harm a company's sales and profitability. In addition, because the business works in several different countries, currency rate variations may have an effect on revenues and expenses. Risks to the company's supply chain, market access, and operational stability might be posed by geopolitical uncertainty and legislative changes.
A major obstacle is the company's aim of diversifying its portfolio of brands and products. A thorough awareness of regional customer preferences, cultural quirks, and market dynamics is necessary to manage diversified product portfolios across several regions. The business must spend money on product development and market research to efficiently meet a range of consumer requests.
The supply chain for the company's international activities is intricate and wide-ranging (Beumer et.al 2018). It takes effective coordination and risk management to manage the movement of commodities, raw resources, and information between many nations and areas. To sustain product availability and satisfy customer demands, the company must make sure that sourcing, shipping, and distribution are trustworthy. Managing inventories, cutting lead times, maximizing production and logistics, and guaranteeing quality control along the whole supply chain are all difficulties in supply chain flow.
For a company, these strategic issues come with a number of risks. Production and distribution can be impacted by supply chain disruptions like natural catastrophes, labour strikes, or trade obstacles. Inflation and recession are two economic hazards that might affect consumer demand and buying power. Local and international rivals pose a threat to an organization's market share, demanding ongoing product innovation and marketing initiatives.
Critically evaluate the external and internal environment for the company and suggest a suitable foreign market; Justifying answers with relevant examples.
The internal and external surroundings have a significant impact on how company makes strategic decisions and choose appropriate international markets.
External Environment:
Based on variables including population size, economic development, and consumer purchasing power(Martínez-Caro et.al 2020). The company should evaluate the market potential of various international markets. A market like India. For example, has a lot of promise given its sizeable population, expanding middle class, and rising standard of living.
The company must take into account the legislative and policy frameworks of prospective international markets. Market entrance and operations can be facilitated by advantageous business policies and ease of doing business. For instance, places like Singapore and Hong Kong have supportive policies and business-friendly environments.
Internal Environment:
The company has to evaluate the internal resources and key skills that can be used in international markets. For example, its excellent R&D skills and emphasis on sustainability might be useful in countries like Sweden where there is a rising demand for cutting-edge, eco-friendly products.
The robust brand portfolio of the company gives them a competitive edge when approaching international markets (Adekola and Sergi, 2016). A quicker rate of market penetration can be achieved by picking a region where the company's brands are already well-known and reputable. For example, extending into the United States, where companies like Dove and Ben & Jerry's already have a significant following, might benefit from well-established brand awareness.
Given these elements, Indonesia may be an appropriate international market for a company. Indonesia has a sizable and quickly developing population, as well as a burgeoning middle class and a rising standard of living (Ma and Cheok, 2022).This offers a large market opportunity for the several items offered by the company. Furthermore, the company has a long history in Indonesia and is already well-known they're due to well-known brands like Ponds, Sunsilk, and Rinso. In recent years, the regulatory climate in the nation has also improved, luring global investment.
PART 2
Critically evaluate the international market context and the influence of organizational governance and leadership, structure, culture, and functions
Company's strategy for international operations may be understood by critically analysing this setting and the impact of organisational governance, leadership, structure, culture, and functions.
- International market context:
The success of a company depends on its ability to comprehend and adjust to the global market environment. Different nations have different economic situations, cultural variety, regulatory systems, and competitive contexts (Lehman, 2023). To customize its strategy and services for each market, the company must evaluate customer preferences and regional market dynamics. For instance, the company's investment in research and development enables the business to create goods tailored to certain regions while taking into account regional tastes and preferences.
- Organisational governance and leadership:
The governance and leadership of the company are key factors in advancing the business's international operations. Strategic decision-making, risk management, and ethical behavior are all ensured by transparent governance systems and strong leadership. Transparency and accountability are supported by the company's dual-listed business structure, which has distinct boards for the UK and the Netherlands.
- Organisational structure and culture:
The organizational structure of the company affects its international activities. The business uses a matrix structure that combines divisions based on regions and categories (Tippmann, et.al, 2023). The coordination and collaboration across markets and product categories are made possible by this framework. Innovation, sustainability, and customer centricity are values that are highly valued at the company.
- Organisational functions:
The success of the company on a worldwide scale is a result of its several functional divisions, including marketing, supply chain, research & development, and sustainability (Sousa, 2023). The marketing department oversees local market-specific branding, advertising, and product promotion. The supply chain role of the company provides dependable sourcing and effective production.
By doing assessment, it has also found that at international level firm also needs to comply with several laws and legislation related to employment, labour etc. If organization will not comply with such laws then it may adversely impacts brand image. Further, operating complexities will also take place due to the fluctuations in timing at varied countries level. Thus, competent strategic framework needs to be developed for dealing with operational issues (Rasche, 2023). In the case of global operations, high level of cultural diversity and differences exist within business unit. Hence, in this regard, by conducting training sessions firm can deal with cultural complexities in an effectual way. Further, now customers' needs and preferences are changing with the very high pace. Hence, to attain success in global market company is required to do investment R&D. Consequently, by catering the need of target market company can fulfil its motives.
monetary environment, political unrest and instability, managing global consumer needs and expectations
Critically evaluate the different global strategies and entry modes that the company could pursue when expanding abroad.
As a worldwide corporation, company may enter new markets via a variety of global tactics. These tactics and entrance points may be critically analysed to learn more about their applicability and prospective effects on company's global expansion.
- Global standardization strategy:
For example, brands like Dove and Lipton have a global appeal and maintain consistent product offerings and positioning globally. The company could pursue a global standardization strategy, where it offers standardized products and marketing strategies across various markets (Rasche, 2023). This strategy enables economies of scale, cost efficiency, and a consistent brand image.
The company might pursue a localization strategy, tailoring its goods and promotional methods to the demands and tastes of the local market. By adjusting to regional variations in language, culture, and consumer behaviour, the company is able to gain market share (Khatib, et.al, 2022). One such is the Maggi brand, which, in order to appeal to regional tastes, offers localized flavours and modifications in several nations.
- Acquisition and joint ventures:
Through acquisitions or collaborative ventures with reputable local businesses, the company can pursue expansion. Utilizing the market expertise and distribution networks of the local partner, this technique enables rapid market entrance.
Through franchising, the company can authorize local partners to use its brand and distribution network as an entry route. With this strategy, market expansion may happen quickly while incurring the fewest financial and operational expenses. The company has used franchising well with brands like Baskin-Robbins and Ben & Jerry's.
To obtain access to their resources, distribution networks, or technology, the company might join forces with other businesses in the target market through strategic partnerships. Working together with regional partners enables shared risk and deeper market penetration.
Provide valid and well-justified recommendations of how the organization should adapt its organisational structure and strategy in the global context
Based on the company's objectives, market dynamics, and competitive environment, company might take into account the following suggestions to adjust its organisational structure and strategy in the global context:
The company should take a market-centric stance by concentrating on regional customer preferences and insights. To achieve this, money must be spent on product localization, consumer analytics, and market research. The company can improve consumer happiness, foster brand loyalty, and gain a competitive edge by comprehending and addressing the specific demands of each region.
The company has to embrace digital transformation in all areas of its business, including operations, marketing, and supply chain. This involves utilizing digital technology for supply chain optimization, data analytics, and e-commerce. Companies can increase productivity, boost consumer engagement, and gain a competitive edge in the digital world by adopting digitalization.
- Sustainability integration:
Sustainability needs to be included into the company's organizational structure and business plan. In order to do this, sustainability concepts must be integrated into every process, from sourcing through manufacturing and distribution. The company can improve its reputation, appeal to environmentally sensitive customers, and reduce environmental hazards in various markets by implementing sustainable practices.
The company should aggressively look for strategic alliances with regional businesses, institutes of higher learning, and technology suppliers in many areas. Access to local market expertise, distribution networks, and cutting-edge technology can be obtained through collaborations. Companies may share risks, benefit from outside expertise, and drive market expansion through strategic alliances.
It is important for a company to promote constant innovation within the company. This entails making investments in emerging technology, product diversification, and research & development. The company can satisfy changing customer expectations, set itself apart from rivals, and keep a competitive edge by always developing and releasing new goods.
Critically discuss the influences of ethical and sustainable globalisation on
Organisational functions
The organisational activities of company have been significantly impacted by ethical and sustainable globalisation, which has shaped its operations, marketing, supply chain, and corporate culture.
Company's operations are impacted by ethical and sustainable globalization since it encourages the incorporation of sustainable practices into its production procedures. The firm is committed to minimizing waste production, maximizing energy efficiency, and lowering its environmental impact (Tiep Le, 2022). The Sustainable Living Plan of the company establishes challenging targets for cutting greenhouse gas emissions, water use, and waste production.
The marketing tactics of the company are influenced by ethical and sustainable globalization. The business places a strong emphasis on open communication and ethical advertising techniques. Fairtrade, ethical sourcing and the use of sustainable ingredients are all values upheld by the company (Herlambang, 2022). It actively involves customers in sustainability projects like Ben & Jerry's social action programs and the Dove Real Beauty promotions.
Ethical and sustainable globalization has a huge influence on a company's supply chain operations. The business prioritizes fair labour practices, supplier involvement, and ethical sourcing. In order to raise sustainability standards, stop deforestation, and guarantee the protection of human rights, the company works with its suppliers. For instance, the Sustainable Agriculture Code of the company establishes standards for the ethical procurement of agricultural raw materials.
The attitudes and behaviours of the company's workers are influenced by ethical and sustainable globalization. The business promotes a culture of accountability, morality, and social awareness (Bengtsson and Östman, 2016). Through training initiatives, volunteer opportunities, and employee-driven projects, the company promotes employee involvement in sustainability activities.
Critically formulate key objectives and strategies to support global decision making to meet the company's business objectives
The following main goals and methods may be developed to enable global decision-making and achieve company's business goals:
Company should make sustainable growth one of its top priorities. Setting goals for revenue growth while taking the company's activities' effects on the environment and society into account is part of this (de Azevedo, 2022). In order to achieve this goal, companies should engage in sustainable innovation, expand into new areas while keeping sustainability in mind, and use partnerships to promote sustainable growth.
The company should strive to grow its market share in current markets while also expanding its presence in new ones. Finding expansion possibilities and creating strategies to successfully enter and penetrate these markets are the main goals.
- Consumer-centric approach:
The company should implement a customer-centric strategy by recognizing and catering to customers' requirements and preferences in various markets. Investments in market research, the use of consumer insights, and ongoing product and marketing strategy adaptation to meet changing customer expectations may all help achieve this goal.
In order to maximize productivity and effectiveness across all of its international operations, the company should pursue operational excellence. Lean practices, continuous improvement projects, and the use of technology and data analytics may all help to achieve this goal.
The value chain and all aspects of the company's business should include sustainability (Peng, 2022). Setting challenging sustainability goals, minimizing negative environmental effects, and improving society are all components of this goal. Responsible sourcing, waste minimization, the use of renewable energy sources, and community involvement programs are some possible strategies.
The company can enhance global decision-making and match its actions with its overarching company objectives by developing these key objectives and strategies. The company can successfully traverse the complex commercial landscape, satisfy changing consumer wants, and reach its long-term business objectives by regularly assessing and modifying these tactics.
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Conclusion
The above report concludes that as a multinational conglomerate, this firm expertly negotiates the complex and ever-shifting economic environment in which it operates. The firm's solid footing in the market, unyielding commitment to sustainability, and dogged pursuit of innovation put it in a prime position to further expand and strengthen its customer base. Maintaining an edge in a crowded market requires adept management of shifting client tastes, complex supply chain dynamics, and other obstacles. By effectively handling risks, capitalising on diversification, and refining supply chain operations, the corporation may take advantage of opportunities in global marketplaces. Market capacity, regulatory climate, and brand recognition are just few of the extrinsic factors that must be considered during this process in specific regions like Indonesia. Strategic analysis allows the company to align its strengths with the market's opportunities, paving the way for sustained growth and success.
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