C02 | Relevance of doing

Business Internationally
Understanding & Analysing

For chapter
reference,
use course
outline
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What we will cover today

1. Why should one do international business?

2. Identifying and analysing factors that appear to impact managerial decisions in
international business. Understand some tools used.
3. How management practises and philosophy needs to adapt if we need to succeed in
this dynamic environment

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1. Why should one do international business?

● Increase sales
● Access new resources and knowledge
➠ Business growth and stability
● Reduce risks in business

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2. External Factors
Identifying, analysing factors impacting managerial
decisions. Tools used.

Environment
● Political
● Economic PEST
● Social
P E S T E L or
● Technological
PESTLE
Plus
● Legal
● Environmental

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The Country Comparison Deck
Political Economic Social Technology

Government Policy Economic growth rate % Population Infrastructure

Political Stability Forex rates Pop. growth rate Incentives and aids for
technology
Corruption Interest rates % Demographics
Innovation levels
Foreign Trade Policy Inflation % Society career attitudes
Emphasis on R&D
Tax Policy Disposable income Safety orientation
Technology change and
Labour Law Employment/ Health consciousness disruption
Unemployment rate %
Trade Restrictions Lifestyle attitudes Technology awareness
Wage rates
Cultural barriers and
attitudes

Culture orientation on
business

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The Country Comparison Deck
Political Economic Social Technology Environment Legal

Government Policy Economic growth rate % Population Infrastructure Climatic conditions Discriminatory laws

Political Stability Forex rates Pop. growth rate Incentives and aids for Environmental policies Employment laws and
technology policies
Corruption Interest rates % Demographics Weather
Innovation levels Consumer protection
Foreign Trade Policy Inflation % Society career attitudes Climate change impact laws
Emphasis on R&D and sensitivity
Tax Policy Disposable income Safety orientation IPR, copyright laws
Technology change and Activism - climate
Labour Law Employment/ Health consciousness disruption change Health and safety laws
Unemployment rate %
Trade Restrictions Lifestyle attitudes Technology awareness Antitrust laws
Wage Rates
Cultural barriers and
attitudes

Culture orientation on
business

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3. Internal factors:
Adapting management practices to succeed in a global
environment

● Cross border decisions: Entering foreign markets needs careful consideration and decisions -
multiple options. Which is the right one?
● Strategic plan in relation to the objectives: Strategic planning and execution
● Leadership for a global vision and execution. Appreciation and skills for vision, functional
skills, industry expertise and business savvy
● Organisational Structure - Top down or horizontal

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Entry choices

● Exporting
● Turnkey
● Licensing
● Franchising
● Joint Venture
● Subsidiaries

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 In conclusion

● To succeed globally, companies need to have clarity on the managerial activities - than can
contribute to
○ Increased sales
○ Newer learnings and
○ Risk reduction
● The organisation has to analyse and take on board all the external and internal factors and
leverage the organisation to its strengths.

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References and readings

About Us: JCB. (n.d.). Retrieved September 13, 2020, from https://www.jcb.com/en-gb/about

Bloomberg Markets and Finance. [Bloomberg Markets and Finance]. (2020, June 04). How Covid-19 Has Impacted the Apparel Industry. Retrieved from
https://www.youtube.com/watch?v=sHC5bEyjdGc&feature=youtu.be

GDP growth (annual %). (n.d.). Retrieved September 13, 2020, from https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG

CNBC Television. (2020, Aug 7). President Donald Trump signs executive orders to ban TikTok and WeChat from U.S. in 45 days [video]. YouTube.
https://youtu.be/O1Io7T3K86M

BloombergQuint. (2018, May 9). 5 Things To Know About The 3-Way War For India’s E-Commerce Market [Video]. YouTube.
https://youtu.be/Lz_2uzncITU

Bloomberg Markets and Finance (2019, Feb 5). How Bezos and Walmart Lose Out to Billionaire Ambani in Inida [Video]. YouTube.
https://youtu.be/q6GOGr5uwUo

Bloomberg QuickTake Originals. (2009, Aug 31). Emerging Market Spotlight - India - Bloomberg[Video]. YouTube. https://youtu.be/XFmHybSGDrQ

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References and readings

Bloomberg Markets and Finance (2020, Jan 24). Best of Davos: Risks to the Global Economy [Video]. YouTube. https://youtu.be/6GJ5Gdqt2gg

Elliott, L., & Wearden, G. (2017, January 18). Xi Jinping signals China will champion free trade if Trump builds barriers. Retrieved September 13, 2020,
from https://www.theguardian.com/business/2017/jan/17/china-xi-jinping-china-free-trade-trump-globalisation-wef-davos

TradeGecko. (n.d.). Zara supply chain analysis - the secret behind Zara's retail success. Retrieved September 13, 2020, from
https://www.tradegecko.com/blog/supply-chain-management/zara-supply-chain-its-secret-to-retail-success

(2018, February 01). Retrieved September 13, 2020, from https://www.cia.gov/library/publications/the-world-factbook/docs/rankorderguide.html

Ghemawat, P. (2019, February 22). Developing global leaders. Retrieved September 13, 2020, from
https://www.mckinsey.com/featured-insights/leadership/developing-global-leaders

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Copyright

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