Performance and performance

evaluation system of global

business
Global Business
✧ Global business refers to the activities of organizations that
operate across international borders and engage in
commercial activities in multiple countries.
✧ These businesses are also often referred to as multinational
corporations (MNCs)
✧ This is different from an international business, which sells products
worldwide but has facilities only in its home country.
Key factors
✧ Economic Conditions: The global economic environment has a
significant impact on a global business. Factors such as
exchange rates, inflation, interest rates, and economic stability in
different countries can affect profitability and market
opportunities.
✧ Market Research and Understanding: A deep understanding of
local and global markets is crucial. Global businesses need to
conduct thorough market research to identify consumer needs,
preferences, and cultural nuances in different regions
✧ Political and Regulatory Environment: Political stability and
government regulations can greatly affect global business
operations. Changes in government policies, trade agreements,
and geopolitical tensions can have a significant impact.
✧ Supply Chain Management: Efficient supply chain management
is crucial for global businesses. They need to ensure a smooth
flow of goods, manage inventory, and optimize logistics to
reduce costs and meet customer demands.
✧ Global business refers to the activities of organizations that
operate across international borders and engage in
commercial activities in multiple countries. These businesses
are also often referred to as multinational corporations (MNCs)
✧ Sustainability and Corporate Social Responsibility: In today's
world, a focus on sustainability and corporate social
responsibility is increasingly important. Global businesses
need to address environmental and social issues to maintain
their reputation and meet evolving consumer expectations.
Benefits
✧ Market Expansion:* Access to a larger customer base across
the globe can result in increased sales and revenue.
Companies can tap into markets with varying levels of demand,
economic stability, and growth.
✧ Economies of Scale:* Operating globally often allows
businesses to achieve economies of scale, reducing
production costs and improving profitability. Large-scale
production can lead to cost savings through bulk purchasing
and standardized processes.
✧ Diversification:* A global presence can spread risk across
multiple markets and regions. Economic downturns or
challenges in one area can be offset by growth in another.
✧ Access to Resources:* Global businesses can access a wide
range of resources, including raw materials, skilled labor, and
technology. This access can lead to enhanced product
development and operational efficiency.
✧ Competitive Advantage:* A global presence can create a
competitive advantage by providing insights into diverse
markets, allowing the adaptation of products and services to
meet local preferences and needs.
✧ Innovation and Knowledge Transfer:* Operating in multiple
regions facilitates the sharing of knowledge and innovative
practices, leading to the exchange of ideas and technologies
across borders.
✧ Tax Efficiency:* Global companies can structure their
operations to take advantage of tax benefits in various
countries. This can lead to reduced tax burdens and increased
profitability.

✧ Cultural Understanding:* Global businesses often develop a

deep understanding of diverse cultures, which can lead to
better relationships with customers and partners in different
regions.
strategies for boosting the performance
of global business
✧ Market Expansion and Entry:*
- *Diversify into New Markets:* Identify untapped markets or
regions where there is demand for your products or services.
- *Market Research:* Conduct thorough market research to
understand local consumer preferences, cultural nuances, and
regulatory requirements.
- *Joint Ventures and Partnerships:* Collaborate with local
partners to leverage their expertise and networks.
✧ *Innovation and Product Development:*
- *Invest in R&D:* Allocate resources to research and
development to create new, innovative products or services.
- *Adapt to Local Needs:* Customize products or services to
meet the specific needs of different markets.
- *Protect Intellectual Property:* Safeguard your intellectual
property through patents and trademarks.
✧ *Operational Efficiency:*
- *Supply Chain Optimization:* Streamline the supply chain to
reduce costs and improve responsiveness.
- *Lean Manufacturing:* Implement lean principles to minimize
waste and enhance efficiency in production.
- *Quality Control:* Maintain high-quality standards to build a
strong reputation.
✧ Digital Transformation:*
- *E-commerce Expansion:* Invest in online sales and
distribution channels to reach a broader customer base.
- *Big Data and Analytics:* Utilize data analytics to gain
insights into customer behavior, market trends, and operational
efficiency.
- *Cybersecurity:* Protect your digital assets and customer
data from cyber threats.
✧ Talent Management:*
- *Employee Development:* Invest in training and
development programs to empower your workforce.
- *Diversity and Inclusion:* Promote a diverse and inclusive
work culture to attract and retain talent from various
backgrounds.
- *Global Mobility:* Facilitate the movement of key talent
across international offices.
Performance evaluation system
✧ Performance evaluation systems in global business are essential for
assessing the effectiveness of operations, setting and tracking goals, and
improving performance across international markets. These systems help
companies align their objectives, measure progress, and make informed
decisions.
Some evaluation system
✧ Key Performance Indicators (KPIs):*
- Define relevant KPIs that reflect the company's global goals
and objectives. KPIs should be specific, measurable,
achievable, relevant, and time-bound (SMART).
- Common KPIs may include financial metrics (e.g., revenue,
profit), operational efficiency (e.g., supply chain performance),
customer satisfaction, and market expansion.
✧ Benchmarking:*
- Compare your company's performance against industry
standards and competitors. Benchmarking can help identify
areas for improvement and set realistic targets.
✧ Balanced Scorecard:*
- Utilize a balanced scorecard approach that considers
financial, customer, internal processes, and learning and
growth perspectives. This approach provides a comprehensive
view of performance.
✧ Market-Specific Metrics:
✧ Tailor performance evaluation to reflect the unique challenges and
opportunities in different global markets. This may involve market share,
regulatory compliance, or local customer preferences.
✧ Technology and Data Analytics:*
- Leverage technology and data analytics tools to collect and analyze
data for performance measurement. Advanced analytics can provide
deeper insights into trends and opportunities.
✧ *Regular Reporting:*
- Establish a routine reporting schedule, which may be
monthly, quarterly, or annually, to keep stakeholders informed
about performance. Ensure reports are clear and concise.
✧ Objective Setting and Alignment:*
- Align performance objectives with the company's global
business strategy. Ensure that objectives are cascaded from
top management to all levels of the organization.
✧ *360-Degree Feedback:*
- Consider a 360-degree feedback approach that
incorporates input from peers, managers, subordinates, and
self-evaluations to provide a more holistic view of an
individual's performance.
✧ Performance Reviews:*
- Conduct regular performance reviews with employees,
teams, and departments to provide feedback and set
improvement goals. These reviews can be conducted annually
or more frequently.
challenges for performance evaluation
✧ Cultural Differences:* Cultural variations in communication
styles, work ethics, and expectations can make it challenging to
apply uniform performance standards and interpret feedback
consistently across different regions.
✧ Language Barriers:* Language differences can hinder clear
communication, making it difficult to accurately assess
performance, set objectives, and provide feedback in a
multicultural workforce.
✧ Time Zone Differences:* Coordinating performance evaluations
and discussions across various time zones can be logistically
challenging and may lead to scheduling conflicts.
✧ Legal and Regulatory Complexity:* Complying with varying
employment laws, regulations, and labor practices in different
countries can impact how performance evaluation systems are
designed and administered.
✧ Differing Business Practices:* Differences in business practices
and expectations in various regions can lead to confusion in
setting performance standards and objectives.
✧ *Data Privacy and Protection:* Adhering to data privacy
regulations, such as GDPR in Europe, while conducting
performance evaluations and storing employee data can be a
challenge.
✧ Global Performance Consistency:* Ensuring consistent
performance standards and measurement criteria across
global offices can be difficult when there are cultural and
regional variations.
✧ Subjectivity and Bias:* Cultural biases, unconscious biases,
and different performance expectations can lead to subjectivity
in evaluations, which may not align with objective criteria.
✧ Performance Appraisal Timing:* Deciding when to conduct
performance evaluations may be influenced by local customs
and norms, which can vary widely.

✧ Accessibility and Technology:* Ensuring that all employees

have access to the necessary technology and resources for
performance evaluations can be more challenging in regions
with limited infrastructure.
EXAMPLE
✧ Financial Metrics: Apple could analyze key financial indicators,
such as revenue, profit margins, and return on investment (ROI),
to determine if they are meeting their financial goals. They
might also compare these metrics across different regions to
identify areas of strength and weakness.
✧ Market Share: Apple could evaluate its market share in various
countries or regions to assess how well their products are
performing compared to competitors. They might track changes
in market share over time to identify trends.
✧ Customer Satisfaction: Customer feedback, through surveys
and online reviews, can be used to gauge customer
satisfaction with Apple's products and services worldwide. They
could track Net Promoter Scores (NPS) and customer
complaints to identify areas for improvement.
✧ Supply Chain Efficiency: Monitoring the efficiency of their
global supply chain is crucial. Apple could evaluate metrics like
inventory turnover, on-time delivery, and cost management to
ensure their products reach the market efficiently.
✧ Sustainability and CSR: Assessment of their environmental and
social responsibility efforts, such as carbon footprint reduction
and fair labor practices in their supply chain, can be part of
performance evaluation to align with their corporate social
responsibility (CSR) goals.
✧ Employee Productivity: Evaluating employee performance and
engagement across their global workforce is essential. Metrics
like turnover rates, employee satisfaction, and productivity can
be used to assess this aspect.
✧ Innovation and Research: Tracking the number of patents filed,
research and development investments, and new product
launches can indicate their commitment to innovation and
technological advancement.
✧ Compliance and Risk Management: Ensuring compliance with
international laws and regulations, as well as managing global
business risks, is a key aspect of performance evaluation for a
global company like Apple.
CONCLUSION
✧ In conclusion, the performance of global businesses is a complex and
dynamic landscape that is shaped by various factors, including economic,
political, social, and technological influences. The success of a global
business hinges on its ability to adapt to diverse markets, navigate
regulatory environments, and harness the power of innovation and
technology. While there are numerous challenges and uncertainties
inherent in global business operations, there are also significant
opportunities for growth and profitability
THANK YOU
✧ Harihara Rengen
✧ Hariharasudhan G B
✧ Hari Krishnan
✧ Harinee S
✧ Harini Priya S
✧ Hazeena Parveen M
✧ Immanuel