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International business strategies - Essay Example

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In addition, the firm is regarded as a distinct, clearly defined unit. Its boundaries are seldom questioned or considered problematical (Axelsson,…
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Download file to see previous pages Either the author of the statement is unbelievably naive, or it is merely an attempt to be provocative with didactic intent. Take the classic example of Mark & Spencer plc, which began in 1894 as a single high street store owned by two men, selling all items said to be costing no more than a penny to the customer. Over the years it conquered the retail sector with branches in prime locations all over the UK, and in overseas territories, totalling more than 885 stores. Not only did Marks & Spencer evolve into the giant corporation which it is today by reading the changes in the environment well, and meeting the growing needs of more and more affluent consumers, it also influenced the shopping habits of its clients. The business firm is not a faceless entity; at best, it can be an icon of social and economic progress, and at worst become vanquished by its inability to read the environment, Woolworths and MFI being two recent examples of such failure.
How the environment impacts on the fortunes of the business firm is nowhere more evident than in the collapse of many business enterprises including financial institutions (banks) in the current worldwide economic downturn. Even starker is the effect of continuing bad weather either in the form of floods or snow on the viability of a whole range of firms in the UK. Had the environment represented by the UK government not provided a lifeline to some of the major banks in the form of taxpayer subsidies, or buy-outs, they would not have survived. Different political ideologies at different times affect the business enterprise in different ways. The collapse of communism and the breaking down of the Berlin wall in 1989, coupled with the Internet phenomenon resulted in the abolition of legislation preventing global communication and industrialisation. Since then there has been a plethora of international mergers, acquisitions ...Download file to see next pagesRead More
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