International Business Environment: Global and Local Marketplaces in a Changing World - Assignment Example

Business environment Table of Contents Table of Contents 2 Task 4 Answer 1 4 Answer 2 4 Answer 3 5 Answer M1 6 Answer D1 6 Task 2 7 Answer 2.1 7 Answer 2.2 8 Answer 2.3 9 Answer M2 9 Answer D2 10 Task 3 10 Answer 3.1 10 Answer 3.2 11 Answer 3.3 11 Answer M3 12 Task 4 12 Answer 4.1 12 Answer 4.2 13 Answer 4.3 13 Answer D3 14 References 15 Task 1 Answer 1.1 Siemens is recognised as one of the multi-sector business organization. It is working with United Kingdom’s National Health Services (NHS). NHS is considered as one of the largest organization of Europe. Siemens is working jointly with the trust of NHS hospital in order to improve the facilities of health care centres. Along with this, Siemens is also working with many other partners in order to develop new hospitals so as to reduce varied types of disorders and enhance the health of the citizens of United Kingdom as compared to other neighbouring nations. Other than this, Siemens is working co-ordinately with Barnet and Chase NHS Trust in order to develop Private Finance Initiative (PFI). The main work of PFI is to offer varied types of medical facilities such as accident & emergency units, communications, intensive therapy units, medical equipment and several operating theatres so as to save the citizens of United Kingdom from various disorders. In addition to this, Siemens is also trying to implement the processes of energy management systems and hospital IT in order to maintain the records of the patients in an effective way. Due to the development of these above mentioned services and facilities, Siemens became successful in saving the lives of the citizens of United Kingdom from numerous critical problems. Answer 1.2 There are different objectives of different stakeholders that an organization had to meet in order to enhance its competitiveness and sustainability in the market. Owners: owners are considered as the most essential stakeholder as they are entirely responsible for establishing the business. The owners devote maximum extent of time in order to amplify the profit margin and brand image of the organization in the market among many other rival players. Customers: customers are considered another important stakeholder of an organization. In order to amplify the reputation of the organization, the customers need to be offered best services at best cost so as to retain them. Employees: employees are also another important asset of an organization as they help in its growth and profitability. However, by offering best services, they try to attain security in their jobs for long run. Suppliers: they also want to attain a valuable position in the organization by offering best quality raw materials with accurate payments. Trade unions: this is a specific group of members who try to attain better position and wages for others (Siemens, 2012). Government: the government is also another important stakeholder, whose objective is to make the organization successful in order to enhance the opportunities of jobs. Answer 1.3 Responsibility seems to be a buzz term but it is extremely essential for an organization to amplify its prosperity and popularity in the market. This is because it is the responsibility that helps to maintain the successful operation of an organization in the market among other rival player. However, in order to maintain the responsibilities such as CSR, legal or ethical responsibilities, vigorous planning is essential. It is done in order to find out the person, who might become responsible for all sorts of obligations. Apart from this, varied types of organizational theories and structure are used, in order to develop proper coordination and relationship among the employees. Along with this, proper organizational norms are used at the time of delegation of responsibilities of tasks to various employees of the organization so as to delegate them successfully. For example: CSR is considered as one of the most important responsibility that need to be delegated effectively by the specific group members of the organization in order to amplify its popularity and reliability in the market among others (Siemens, 2012). Strategies are recognised as targets that might be used to enhance the popularity and reputation of the organization in the market among others. For example: development of innovated products and services. However, in order to develop varied types of inventive products, the organization might try to implement varied types of training and development programs so as to amplify the inner skills and talents of the employees. By doing so, the organization might become successful in amplifying its brand image and profitability in the market among many other rival players. Answer M1 The mission statement of Siemens is to offer qualitative services to its target customers so as to enhance their reliability and reputation in the market among other existing rivals such as IBM. Other than this, it also tries to offer its services at a quite effective way in order to amplify its competitive position and sustainability in the market that may increase its reputation. In addition, Siemens also tries to optimise the business dealings of its customers through its best services so as to amplify the trust of the customers. The prime objective behind such a mission is to amplify its range of customers and profitability in the market that may increase its portfolio and distinctiveness. Other than this, by presenting such type of qualitative services, the organization of Siemens always tries to amplify its dependency and popularity among others. This is extremely essential for an organization like Siemens to retain its image and value in this aggressive market. Answer D1 The stakeholders of Siemens in future era are mainly the customers, employees, partners and investors. Customers: the organization of Siemens always tries to optimize the business of its customers with the help of its qualitative products and services so as to amplify its profitability and reputation. Other than this, by offering effective services, the organization became successful in amplifying the rate of retention of the customers thereby reducing the ratio of switchover costs. Employees: the organization of Siemens presents extremely secure and advanced working condition to its employees in order to enhance their retention ratio. Other than this, the prime aim of presenting effective working condition is to amplify their devotion towards work so as to increase their performance and overall efficiency of the organization in the globe among other rival players. Partners: the prime aim of the organization of Siemens is to amplify the reliability and trust of the partners so that they may expand their business dealing with them. Moreover, if the help of a reliable partner, they might enhance its profitability and productivity of the organization to a considerable extent (Siemens, 2012). Investors: investors are considered as the prime stakeholders of the organization of Siemens as it helps it to amplify its growth and reputation in the market among other. Moreover, due to the presentation of qualitative services to the investors, the rate of reliability and confidence of the investors might get amplified to a significant extent among others. Task 2 Answer 2.1 Economic system is considered as a group of organizations utilised by the society members in order to resolve the primary problems in an effective way. There are varies types of economic systems exist within a society such as planned, mixed and traditional economy. All the above mentioned economic systems are entirely responsible to making the decisions for allocation of resources within the society in an effective way. Allocation of resources is done in order to make its fullest utilisation within the services of the society. However, at the time of allocating the resources, utmost flexibility is maintained so as to transfer it from one place to another and from one purpose to another. So that, the changing requirements or purposes of the society gets fulfilled in an effective way with the help of allocated resources. Other than this, at the time of allocation of resources, utmost predictability is maintained so as to reduce the transactional cost. Furthermore, the resources are allocated in such a way that the prospective users might attain the highest benefit from them. Thus, it might be stated that in order to allocate the resources within the society in an effective way, it is essential to make successful planning. Only then, it might become successful in making the planning of allocating the present resources effective in all regard. Answer 2.2 Fiscal policy is a process by which the government control its expenditures in order to evaluate the growth and advancement of the economy of a specific nation or country. It is recognised as the sister strategy of monetary policy with the help of which, the central bank of the country control the monetary supply of a nation. On the other hand, monetary policy is the strategy used to restrict the growth of revenues to constrict credit conditions. But it works in different ways in different situations. Objectives of Fiscal policy: To distribute money and wealth evenly among the citizens of the society To offer high influence over the supply side To monitor and control demand of the products Effects of fiscal policy: Taxation and productivity Taxation and incentives earned through activities of work Impact of monetary policy: Inflation may be controlled with the help of monetary policies It is also used to present a job opportunity to an individual It is used to regulate the amount of expenditure. The monetary policy also offers significant impact over the interest rates at the time of borrowing money from bank Thus, from the above mentioned points, it might be clearly depicted that both fiscal and monetary policies are extremely essential for a society. Answer 2.3 Competition is defined as the degree of competitiveness of the products and services of an organization in the market among many other rival players. By doing so, the rate of demand of the consumers and suppliers might also be easily analysed. Moreover, whether the market is dominated by a single supplier or numerous might also be determined easily through the policy of competition. Other than competition, many other regulatory activities such as fair trade act of 1973, restrictive practices act, the resale act of 1976 etc are highly effective for the services of the organization of Siemens. This is because; due to the presence of these activities, the organization of Siemens always desire to offer high concentration over research and development in order to present highly effective and qualitative services to its customers. This is done, in order to amplify its position and reliability in the market among others (Sawyer, 2004, pp. 445-456). Answer M2 Due to economic inflation or downturn, the per capita income of the individual reduced to a significant extent. As a result of which, the buying behaviour attained a serious set-back. Maximum extent of the individual failed to purchase their desired product or service from Siemens that resulted in de-growth and loss of profit margin. Due to which, the reliability and dominance of the organization of Siemens in the market declined to a considerable extent resulting in lowering of its portfolio and position. Therefore, in order to regularise its sale and reputation in the market, the organization of Siemens had to offer its products or services at a quite low cost as compared to its rivals. This proved effective in enhancing the position and efficiency of the organization. Answer D2 In such a regulatory environmental condition, the organization of Siemens tried to offer more concentration over its service qualities. As, it is prime weapon for the organization to retain its dominance and position in the market among many other rival contenders and so, it tried to recruit high experienced on-site managers. This is done in order to develop extremely advanced technical products that may prove worthy for the products of the customers. Other than this, the prime intention for recruiting experienced managers is to offer technical support services to its customers so as to retain them for longer period of time. Only then, it might become successful to enhance its competitive position and reliability in the market (A & C Black Publishers Ltd, 2009, pp. 123-134). Task 3 Answer 3.1 In different societies, different types of markets exist and so the pricing and output decision also varies from one another. But both pricing and output decisions are independent from one –another in case of perfectly competitive markets. This is because, in a perfectly competitive market, the pricing and output decisions of a small organization may not offer any impact over the pricing decisions of the society. Moreover, as in perfectly competitive market, price is equal to marginal cost so it remains similar to that of the society, but the quantity of the product varies significantly. However, in monopolistic competitive market, the pricing and output decision of a single buyer might offer significant impact, as it comprises of the power of the total market. But in this type of market conditions, increment of price leads to decrease of the total quantity of products. Thus, it might be clearly revealed that market structure offers significant impact over the pricing and output decisions. Answer 3.2 The market forces that help to create the organizational response are mainly with the help of two most important economic principles: supply and demand. An organization might always desire to improve the demand of its products and services by offering qualitative products (A & C Black Publishers Ltd, 2009, pp. 123-134). However, in order to fulfil such demand, the organization might also try to implement any sort of cost effective policy in order to retain its position and image in the market among others. Moreover, market forces such bargaining power of the buyers, suppliers, competitive rivalry, threat of new entrants, substitute products etc also offer considerable impact over the demand and supply of the organization. For example: introduction of Iphone by Apple Inc proved extremely effective for the organization as it became successful in fulfilling the changing demands and requirements of the target customers. Thus, in-spite of competitive rivalry, Iphone became successful in amplifying the image of Apple Inc. Answer 3.3 The factors that might affect the operation or functioning of a business are all present within the business and cultural environment such as customers, competitors, stakeholders, industry trends, suppliers, social and economic factors, regulations in government activities etc. Therefore, due to these above mentioned factors, the demand and supply of the products and services of the organization gets affected significantly that declines its portfolio in the market. However, at times, due to positive business and cultural environmental factors, the profitability and productivity of the organization enhances resulting in amplification of its prosperity and efficiency among others. Answer M3 As the market structure is oligopolistic in nature there are numerous rival contenders. Due to which, the organization of Siemens had to implement its pricing strategies very consciously and cautiously. This is because; in order to maintain its position and reliability in the market, the organization of Siemens tried to implement competitive pricing strategy in order to amplify its competitiveness and sustainability among other rival players. Other than this, the organization of Siemens also tried to offer highly qualitative products and services in order to enhance its range of customers so as to increase its prosperity and productivity in the market among the existing players. Task 4 Answer 4.1 The international business is described as the procedure to buy and sell the products across the national borders. It is recognised as the backbone for any organization in this age of aggressiveness. This is mainly due to varied factors such as low production costs; specialised industries, numerous experienced workers, specialised labours at low wage rates etc are extensively useful for an organization to enhance its productivity and profitability. Moreover, due to international trade activities, the brand image and portfolio of the organization amplifies thereby enhancing its reputation and brand value. Moreover, the organizations operating in United Kingdom market, equal amount of dollar might be offered by the employer to its employees that may increase their satisfaction and devotion power as well. Answer 4.2 The factors that offer significant impact over the business organizations of United Kingdom are mentioned below: Social Factors: the social factors such as age, gender, lifestyle, behaviour etc offers significant impact over the buying behaviour of the customers. Due to which, the rate of profit margin and productivity of the products and services of the organization enhances or declines as compared to many other rival players. Legal factors: laws and regulations are also other important factors that offer significant impact over the operations of the business organization. The organization needs to implement its policies entirely at par with the government policies and rules. Economic factors: the rise in per capita income of the citizens also offers significant impact over the purchasing behaviours. Due to which, the profitability and productivity of the organization also gets significantly enhanced (Morrison, 2006, pp. 334-345). Political factors: the political stability of the countries also offers significant impact over the operations and functions of the organization. Due to which, the profitability and productivity of the organization also gets enhanced or hampered. Technological factors: the customers of this age, always desire to attain advanced technological products at a competitive price and so the organizations might always try to present high attention over research and development department. Answer 4.3 The organizations of United Kingdom had to obey the rules and regulations of European Union in order to amplify its operations and brand image. Otherwise, it may not be possible for the organizations to enhance its business dealing and reputation in the market among others. Moreover, due to varied types of EU policies and rules, the organization may fail to expand its operations to many other nations and countries that might hamper its portfolio and prosperity in the market among many other rival players (Begg, 2009, pp. 234-245). Answer D3 Siemens is a multi-national organization and so its operations are highly affected by the global factors such as inflation and political instability offers significant impact over the operations and functions of the organization. As a result of which, the brand image and portfolio of the organization might get reduced thereby declining its reputation and productivity in the market among many other rival players. References A & C Black Publishers Ltd, 2009. Whitakers Almanack 2010, 142nd Revised edition. London: A & C Black Publishers Ltd. Begg, D. 2009. Foundations of Economics, 4th edition. New York: McGraw-Hill Higher Education. Morrison, J. 2006. International Business Environment: Global and Local Marketplaces in a Changing World. London: Palgrave Macmillan. Sawyer, M. 2004. The UK Economy: A Manual of Applied Economics, 16th edition. OUP: Oxford. Siemens, 2012. Sustainability report. [Online]Available at: http://www.siemens.com/sustainability/pool/en/current-reporting/siemens-sr2012.pdf [Accessed on 23rd May, 2014]. Read More