Global Business Environment Strategy

Daoud Al Hout

Global Business Environment Strategy

Charisma University

Dr. Pol Lim, Francis

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Abstract

The leading part in active and development of globalization of business

belongs to global organizations. The global companies are market leaders -

companies with world well-known name and brand. The consequences are

produced by the market influence of global companies. Market-followers -

companies at the global market there are also which focus on a small section of the

market. For the reason of that a new markets and competition from different

location of the global market, the sector's structure of market leaders has been

changed. The effects of globalization of global companies have been well-defined

by economic, political, social and business effects. Political effects are produced

by the market leaders’ power as well as by the political empower of their origin

country. Economic effects are effects directly on the world economy, both the

distribution and production system, in addition with the competitive structure. the

world social expansion and development of socio-cultural dimension of global

environment are affected by the Social effects. effects on its own business affairs,

partner companies' affairs and other companies called a Business effects are the ' in

the market top leaders' business surroundings. The bad effects of globalization

have been clear through global dependence on a partial number of companies. The

change of planned location and competitive behavior in domestics

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entrepreneurship and national economy are urgent. The goal of this paper is to

show the positive and negative effects of globalization of global companies’

business for the reason of to small local businesses recognize the positive and

negative effects of global business and willingly await them as challenges or

threats.

Keyword: Global, Business, Environment, Analysis, survey

Argument

Collaboration, Collaboration agility, transparency, innovation, and

productivity are the main five key challenges facing all global companies over the

coming next five years, according to data: more than five million employees

worldwide by global management consultancy Hay Group However, the Hay

Group research found that appointment and enablement levels in many global

businesses haven’t improved since 2000. “The business environment is quickly

changing. Our research shows that most companies don’t currently have the correct

strategies in place to reply to the challenges this brings by the arguably their most

critical asset – their people,” says Mark Royal, senior principal at Hay Group. In

this paper we will discuss the challenges that face a global business and our

recommendation to over it.

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Theoretical Framework

Five common challenges facing the global business:

 Languages Barrier: When interacting in international

business, it’s important to take care about the languages spoken in the states

to which you’re looking to expand. Does the product messaging translate in

the right way to another language? Company should consider having an

interpreter and consulting a native speaker which resident of each country.

One example of a product “lost in wrong translation” comes from a well-

known luxury car brand “Mercedes-Benz” When it entered the Chinese market, the

company decide to a Mandarin Chinese name that similar to “Benz”: Bēnsǐ. The

name translates to “rush to death” in Mandarin Chinese, which wasn’t give the bad

impression so Mercedes-Benz decided to make it to the new audience. The

company quickly act by adapted, changing the chosen Chinese name to Bēnchí,

which means “run quickly, speed, or gallop.”. It’s critical to consider the languages

spoken by the company’s team members in international offices.

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 Culture Difference: Each country has her own Languages and has its

own tradition and culture. Culture includes the holidays, arts, traditions, foods, and

social standards. It’s important and enriching to learn about the cultures of

countries where you’ll be doing business. When managing teams in offices

overseas, selling products to an international shop or potential client,

demonstrating that have been taken the time to appreciate their cultures can project

the respect and emotional intelligence to conduct business successfully.

One example of a cultural difference is about working hours for the United

States and Spain as the hours of a typical workday. In the United States are form 9

a.m. to 5 p.m., and might be extended, however, in Spain the working hours are

from 9 a.m. to 1:30 p.m. and 4:30 to 8 p.m. The break in the middle of the workday

allows for a rest.

 Managing Global Team: Another challenge of international business

is managing employees which is the harder point for now. it can be hard to account

for language barriers, time zones, cultural differences, and varying levels of

technology access and reliance. In order to manage and Build a strong relationship

with your international team. Management should always do a facilitate regular

check-ins, preferably using a video conferencing platform so you can interact in

real time. Research by Gallup shows that staff who have regular check-ins with
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their managers are more likely to be more engaged at work than staff who don’t.

communication is the key to make sure everyone feels engaged and value special

in this time during the Corvid 19

 Currency Exchange and Inflation Rates: The value of a dollar in in

someone pocket is value different than the same Dollar in the same Bucket in

another country. The exchange rate will affect the merchant power and cost of

buying goods. So, it’s so important for all companies how has an international

branch to keep tracking on the inflation rates, which are the rates that general price

levels in an economy increase year over year, expressed as a percentage. Inflation

rates vary across countries and can impact materials and labor costs, as well as

product pricing.

One example of the Currency Exchange: used Car trading is buying

cars from euro in EUR currency so he always should exchange the money

from JOD to EUR and based on the economy situation he has a different

price which effect his flexibility with competitor and has no clear cost of his

goods

 Nuances of Foreign Politics, Policy, and Relations: Business

connected to the influenced by politics, laws, and relations between countries. it’s
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important that every company closely follow news related to the countries relations

where it has business in.

The agreement that has been made by political leaders can impact taxes,

labor laws, raw material costs, transportation infrastructure, educational systems,

and more.

One example related to this point is the relation between Jordan and Qatar is

satisfied and Jordanian travels to Qatar as there is a huge opportunity in 2010 the

King of Jordan has a bad relation with Qatar governor so he order to cut off all

Jordanian worker in Qatar and sending them home which effect on most

companies there.

Business strategies that would help global companies remain

competitive:

A company moving from its local market to the global market can’t just

expand production and hire new staff. The Global business is a complicated and

diverse place with separate markets for goods and services. Growing companies

need to grow global business strategies that account for their financial, branding,

and growth goals. A successful global business strategy anticipates outside

introduction in one market to potential growth around the world:

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 Defying the company global goals: The initial point for any global

business strategy is to know why global expansion is needed. This explanation

should influence into every section of the final plan for the reason of the time,

efforts, and money involved with growth. It is also important to infuse company

expansion rationale in strategy documents for external audiences. The company

likely maintain strategy internal documents but need public-show documents for

current and potential investors and business media interested in your plans to build

the trust and show the whole image.

 Study the completion market: Market research in potential markets

should be the next step. An automaker or mobile phone company may know the

brand names in a specific region but lack the depth of knowledge is necessary for

smart plan and investment. Market research will guide the company to force its

product in cities or to issue new product in another cities … Etc… this will provide

the company with a clear image on the competitor and competitor product.

 Learning the new Market: A common mistake for the new

companies that entering global market is transplanting its ideas into foreign

cultures. translating marketing word to a different language, and launching

products are not guaranteed to succeed. Customers around the world might have

similar needs but make acquisitions within the contexts of distinct cultures and
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histories. The best global strategy documents speech how the company will adapt

to a a new different market instead of how it will parachute into a new place.

 Research about new market laws and tax: The potential drawbacks

of international growth arise when discussing corporate law and taxation in new

market. Its vital baseline consideration for all business expanding into a new

country is the desired presence in the new market

 Reduce company financial exposure: Limited companies enter the

international market depend on solely on existing revenue sources. A growing

company may drive public with an initial public offering, therefore raising capital

for global growth. For example: Profits from a successful product may be used to

launch a new market. Companies should also pursue investments from target

markets to decrease overheads and ensure buy-in from local organizations.

 Be Flexible with company product: Company market research for

sure will provide the company with a certain products and services success in

different countries. These data can be connected to product pricing, cultural

beliefs, and strong local brands. A company can also be too violent with expansion

and face significant challenges in the long term.

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 Fortify the company home market: A global business strategy

mainly focuses on growth in a new market but the company should not disregard

what got a business into a position to grow. The settled strategy should include a

section on goals in existing markets. Research into international growth is a perfect

opportunity for a business to also consider how it can improve its core business.

Conclusion

Global business comes with exclusive challenges and risks but in the same

time it can be a great opportunity for huge organizational growth by knowing all

challenges and keep tracking it by being updated with any political news or any

related news related to the business filed. In addition to that Company should be

closely follow foreign politics, make connections in countries where it hope to do

business and grow, invest in interpreters to overcome language barriers, and

consider taking a global Business course to develop its international Business and

prepare for today's nuanced, interconnected business world. And not to forget that

Its important to have a local staff to follow up with the market change that will

affect company stability and reputation.

References
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