Case Study -3

Leadership Development for Global Market (IBM 110-005)

Zekelman School of Business, St. Clair College

Due Date: May 20th 2023

Leadership Development for Global Market (IBM 110-005)
Zekelman School of Business, St. Clair College

Due Date: May 20th 2023

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Table of Contents
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Case Study 1

1. Examine the causes of war from two different perspectives (Russia and Ukraine).

Both countries have their own motives behind the war.

 Russian Point of view.

Ukraine Wants to join NATO
 The conflict between Russia and Ukraine is one of the most complex issues facing
this world. There are multiple reasons that cause this conflict. But the most obvious
reason for invasion is for Russia to prevent Ukraine from joining NATO.
Safeguard Naval Base
 Furthermore, Russia settled a naval base in Crimea after its annexation. And this
would give Ukraine more remarkable resources to take back the peninsula if
Ukraine were able to join NATO.
Ukraine Become a puppet of West

 Russia Don’t want any military Activity by Western country near his Boarder. But
with the help of Ukraine West wants to block Russia.

 Ukraine Point of view.

Ukrainians want to reclaim their land

 It now controls 40000 sq miles of Ukrainian land, entirely in the south and east. The
analysis show that Russia still controls a majority of the land in each of the four
regions it attempted too illegally. Ukrainians have also expressed their determination
to free all Ukrainian territories from Russian occupation returning to the 1991 country
borders that Ukraine held when it declared independence from the Soviet Union.

2. Analyse the effects of this war in the world economy from long-term and short-
term dimensions.

Russia and Ukraine war has contributed to volatile and elevated commodity and energy
prices, which worsened food shortages and stoked inflation in many regions across the world.
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 Short-term dimensions:

The war has contributed to volatile and elevated commodity and energy prices, which
exacerbated food shortages and stoked inflation in many regions across the world. Although
energy and grain prices subsided from their mid-2022 peaks, the risks of their resurgence
remain, and Europe may still face challenges to its energy security.

Financial markets around the world have dropped.

Brent crude oil prices had briefly crossed the $100-per-barrel-mark for the first time since
2014. While European natural gas jumped as much as 62%.

 Long-term dimensions:

Global economy is slowing, Russia is also one of the world’s leading fertiliser exporters.
Because they were in short supply last year, their price has already risen, and farmers may
have to spend even more to obtain them and grow their crops.

The prices of fuels and gas will be high in future, Russia is the world’s second-largest crude
oil exporter and the world’s largest supplier of natural gas, which is essential for heating
homes, powering airlines, and filling cars with fuel.

3. The effects of the continuation of the war in the economy of European countries,
North America, and Arab oil-rich countries; Analyse from the perspective of an
international marketing manager.
 European countries,
Reduce the demand of goods in international market because …….

 Sanction on Russia creates recession in market.

 Because of reduction in trade, Scarcity of resources and High price, creates inflation
in market.

Finding another market for natural resources because…

 Responsibility of manager increase because Marketing Department has to find another

source for the Gas because Russia is the main supplier of the Europe.

Problem in getting Food Supply from globe:

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 Russia is also the world’s largest wheat exporter, and is a major food supplier to
Europe, so Europe face problem of food scarcity.
 It puts impact on farm production in many countries because they face problem in
Getting cheap Russian fertilizer.

 North America
Recession in Global market reduce Demand of goods

 Russia's invasion of Ukraine could have an impact on the economy both

internationally and domestically.

Oil and natural gas price hike in the Market

 Russia is a major producer of oil and natural gas, and the geopolitical conflict has
increased the prices of both sharply higher in the market.

Shortage of goods in market and inflation

 The United States imports few goods directly from Russia, but a conflict creates
shortage of goods in the market. Raising the cost of raw materials and finished goods
so whole world including the United State is facing rapid inflation.

Impact On life standards changes the preference & demand of goods:

 Global unrest reduces the life standard of the American consumers, prompting them
to cut back on spending and other economic activity. If the slowdown were continued,
it could raise interest rates in market.

 Arab oil-rich countries

Increase Food Prices in the global market

 The UN Food and Agriculture Organization of the United Nations and the UN World
Food Programme have warned about the food insecurity in the Middle East and North
Africa these countries include Afghanistan, Lebanon, South Sudan, Sudan, Syria,
Yemen, and Somalia. Ethiopia is also on the list. All these countries suffer from
international conflict and/or the breakdown of central government.

Good opportunity in expanding Oil market

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 Because of the sanction on the Russia, some countries face problem in getting oil, so
here it is very big opportunity for the oil rich country to expand his market by finding
new oil importer country.