The Global Business Environment Is Highly Competitive - Assignment Example

? Business Topic Table of Contents Introduction 3 The general Environment 3 Economic Conditions 3 Socio-cultural Conditions 4 Political-legal Conditions 6 Technological Conditions 7 Natural Environment Conditions 7 Conclusion 8 References 9 Introduction Global business environment is highly competitive as several leading organizations within a similar industry are trying to develop and implement unique strategies in the business operation processes to achieve potential competitive advantages. It is highly difficult and challenging for a new entrant to survive in this saturated and competitive global business environment. This assignment is all about a newly developed bookshop that is trying to operate at a local shopping mall in Australia. It is true that different general environment’s elements can be considered in the business operation process in order to enhance business performances and business productivity. The assignment will discuss about these elements that can help the newly developed bookshop to develop effective core competencies. The general Environment The newly developed bookshop should try to consider the importance of each and every element of general environment in order to achieve significant business output. Economic Conditions It is true that Australian economic environment is becoming highly challenging due to recent financial crisis and global economic recession. Therefore, it is quite difficult for the new organization to achieve significant business growth rate from the initial point of time. The organization should try to focus on high business performance by ensuring effective intellectual capital. Employees are considered as the strongest assets for an organization. The newly developed book shop should try to maintain effective relationship with the skilled and effective employees as the retention of experienced and skilled employees is the major concern for each and every organization. High performance and skill level of an employee enhance effective business performance. Employees generally represent the organizations’ intellectual capital. Retention and recruitment of new employees will help the organization to maintain effective relationship with the government and several stakeholders. The economic slowdown affected the economic environment of Australia (Damanpour, 1991, p.11). It is true that high unemployment rate, limited purchasing power and low disposable income of people are the major consequences of economic slowdown. Therefore, the organization’s recruitment and retention policy will help to overcome the economic challenges like high unemployment rate. In addition to this, the organization should try to provide products in economic price level. Customers are considered as the real king for the business organization. They can switch over other brand or shop if the current organization fails to satisfy their basic needs. During this, economic slowdown it is important for the organization to reduce several business operation cost and implement competitive pricing strategy without compromising with the quality of the books. It will help the organization to gain significant advantages. Socio-cultural Conditions The knowledge of employees can be regarded as the important asset for the employers. Securing intellectual capital will help the newly developed bookshop to maintain effective relationship with the customers. It is important for the bookshop to maintain strong ethics in the business processes to avoid the possibilities of workplace conflicts. Last but not the least; it is important for the organization to ensure effective leadership and managerial skills to manage a diverse multicultural workforce. In case of any difficulty the managers of the organization should try to implement change management process to develop strategies according to the current market demand. It is highly important for the newly developed bookshop to develop a strong management foundation to maintain effective workplace environment (Rodiek, 2008, p.29). It is discussed earlier that the employees are considered as strongest intellectual capital and assets for an organization. Therefore, it is highly important for an organization to increase the motivation and satisfaction level of the employees. The management of the newly developed bookshop should consider Maslow’s hierarchy of needs theory in the strategy development and performance evaluation process. It is true that each and every employee within an organization tries to satisfy physiological needs, safety needs, needs for social recognition, need for self esteem and need for self actualization. Effective training and development, good performance management, appropriate performance appraisal, adequate compensation distribution, ensuring career growth of employees and engaging them in the decision making process will help the management of the newly developed organization to maintain effective workplace environment (Duncan, 1972, p.9). As a result it will help the organization to enhance effective business performance. Strong administration and co-operation of the management of the newly developed book store with the employees will help the organization to avoid several types of workplace conflicts which can help to develop a strong management foundation of the organization. In addition to this it is the responsibility of the organization to maintain strong workplace diversity by taking care of the needs and satisfaction level of different multicultural employees in the workplace. In terms of customers’ point of view it is highly important for the organization to maintain sustainability and effective customer relationship management in the business process as the consumers around the globe are trying to expect customer friendly business operation approaches. Political-legal Conditions Australia is politically stable country. Australian government is supporting several new entrepreneurs to start their business as the economic environment of Australia affected due to the economic slowdown. High unemployment rate is the major concern for the Australian government. Therefore, the newly developed bookshop can get effective political support from the government of Australia. In addition to this, this particular business is political risk free. Therefore, it is important for the organization take each and every political concern into the account in order to maintain political sustainability in the business operation processes. The newly developed bookshop should try to maintain legal and ethical consideration in the business operation processes. It is true that the government of Australia developed several re3gulations for each and every industry, such as employment law, workplace health and safety law, wage distribution law, production law, supply chain law and marketing law (Achrol, Reve and Stern, 1983, p.7). It is highly important for the organization to considerer each of the developed policy and regulation. In case of violation of these rules and regulations, the organization has to face several critical legal challenges that can harm the image of the organization. Technological Conditions Australia is technologically developing country. The organization should consider implementation of advanced technology and globalization in the business operation process as advanced technology can help the organization to bring efficiency in the business operation processes. On the other hand, globalization will help the newly developed bookshop to grab others’ market share in international market places (Keith, Crummett, Deegan and Libby, 1983, p.19). Several leading organizations are trying to capitalize on the potential opportunities that have been developed due to technological advancement. For example, being one of the leading and largest online booksellers Amazon implemented high automation in the business operation process in order to develop and secure strong global client base and market share (Anderson and Gatignon, 1986, pp. 11-12). It is important for the newly developed bookstore to implement advanced technology in the business operation processes in order to maintain efficiency in the overall business operation processes. Last but not the least; the organization should try to source modern and advanced technological resources that can ease the pressure and level of stress of the employees. It will help the organization to ensure the job satisfaction of each and every employee in the workplace. Natural Environment Conditions Government of Australia has developed several environmental policies and regulations for different business organizations in order to maintain the sustainability of the natural environment. It is true that manufacturing and logistics management process are the major concerns for each and every organization as these business operation processes are associated with several risk factors, such as high carbon emission and environment pollution. Again the example of Amazon can be considered in this stage. The organization succeeded in this business environment as the organization does not believe in manufacturing. Therefore, the organization avoids threat of high carbon emission level in the manufacturing process. In addition to this, the organization uses fuel efficient long headed trucks in logistics and supply chain process in order to reduce the carbon emission level. It is true that logistics trucks need to consume fossil fuel as the source of energy. High consumption of fossil fuel is the major reason behind the carbon emission. Therefore, it is important for the newly developed bookshop to maintain sustainability in the business operation process. In addition to this, the organization can adopt recycling of water and paper in the business operation process as it will help the organization reduce business operation cost (Weihrch, 1982, p.10). In addition to this, this recycling process will help the external stakeholders to support the developed business strategies of the organization. Conclusion It is clear from above discussion that the organization has to maintain each and every element of the general environment. First of all, the organization has to develop pricing strategy according to the purchasing power of people. In addition to this, the organization should try to retain skilled employees and recruit new employees to overcome the distressed economic situation of the country. The newly developed bookshop should try to integrate advanced technology and environmental sustainability in the business operation process to develop high brand image and maintain successful business performance. Last but not the least; the organization should try to consider each and every legal issue in the business operation process to avoid the possibilities of several conflicts. References Achrol, R., Reve, T., and Stern, L., 1983. The environment of marketing channel dyads: a framework for comparative analysis. The Journal of marketing, 59(2), p.7. Anderson, E., and Gatignon, H., 1986. Modes of foreign entry: A transaction cost analysis and propositions. Journal of International Business Studies, 27(1), pp. 11-12. Damanpour, F., 1991. Organizational innovation: A meta-analysis of effects of determinants and moderators. Academy of management Journal, 11(1), p.11. Duncan, R., 1972. Characteristics of organizational environments and perceived environmental uncertainty. Administrative Science Quarterly, 17(2), p.9. Keith, L., Crummett, W., Deegan, J., and Libby, R., 1983. Principles of Environmental Analysis. International Journal of Marketing, 23(1), p.19. Rodiek, C., 2008. External Environmental Analysis. Munich: GRIN Verlag. Weihrch, H., 1982. The TOWS matrix—a tool for situational analysis. Long Range Planning, 57(2), p.10. Read More