Challenges Facing Global Business
Content
Several businesses today are global businesses too and with the increase of technology and real time experiences on the internet conducting global business has become simpler than ever. All the aspects of global business like interacting with pe ople, business planning, holding conferences and communication happens on the internet and not at the actual location.
Since we are talking about international business here we would like to believe that the other end of the business is located in a fast developing country and not in third world. Every business has its difficulties and presents is own challenges in when it comes to operating it successfully. For example , the nature of business may not be accepted openly in the targeted country because of cultur al differences. Also, international businesses face several restrictions like acceptance, usability, application of the product locally and customer service issues. Even th ough English is a very popular language it is in the end spoken only in a few countr ies as a primary language. Some of the people in other countries have never uttered a single word in English their entire lives. So the company which is starting a business in such a place s hould have a contingency plan where they can provide service in th eir language for example. If a company can cross over the language and cultural barriers, then most of their blocks have been cleared. Also the busines s ethics matter and the any international organization cannot have standard ethics that apply globally. T hey have to be changed and altered.
Important Information To An International Business
The main aim of any international business to be successful in the countries they are operating and make their products or service a global name. This is not very diff icult to reach as the global standards are uniting and also technology has become the biggest aid for business.
Every organization has to be prepared to take up the challenge by having all the information related to the business. They ha ve to work with a lot of precision and start planning in terms of future and not what has gone by. This advice is all the more applicable for small businesses and startups that are expanding. Global policies for every country different and an international organization sho uld comply with the local standards and also where they have the business presence. There are some key factors which decide the fate of the company and this includes the risk management. In the United States, a trend that has been continuing since the last decade is outsourcing of services to countries like India, Bangladesh and Pakistan. A lot of factors come into play like cultural barriers and every international organization h as to have someone from that country in their organization to be able to facil itate the business. By employing local people, most of the business transition and processes can be smoothened out and also through training the creases can be ironed out. Economic conditions mainly govern the success or failure of the business and they s hould be prepared in advance for their business plan backfiring.
What Is The Importance Of Global Trade ?
Global trade is very important for all the countries in the world. If a country is not open to global trends and businesses, then it is their loss and not gain. Global business does come with its advantages and a few disadvantages but overall they are beneficial at the end of the day.
When a global business steps into a new market it is bringing chances for employment and also improving the local conditions. A country cannot function independently with absolutely no involvement from others and be successful. If a country has to be marked on the map, then they should have some kind of trade and commerce relationship with other countries. There are several other useful outcomes of global business like exploring of new products and also coping with incompetence. For example, the medical in dustry has several advanced products in the developed countries. These equipment, products and medications are very useful and effective in treating some life threatening diseases. A lower ranked country has no choice bu t import them from such countries an d this will show up negatively on the fiscal budget for the country. Instead if they welcome other global businesses to their country the productions costs go down and also the needs of the people are met.
Global business also increases the overall gross domestic product (GDP) and the economic conditions for a country. When there are more products available the consumers spend more and private investments increase. The net exports and imports increase and the overall growth are noticed.
Why Do Cultural A nalysis Before Start An International Business ?
Every business that is planning to start its operation in an international location should first study the location thoroughl y. They should completely understand the local market and also do a through cultu ral analysis of the place.
Cultural analysis helps the business in setting several parameters for decision making, adapting to new needs, implementation and also monitoring the effectiveness of the business. Executing a business in a cross cultural enviro nment is very difficult. Every
country has its own unique cultural requirements and you can notice this on a wider perspective. People in China are differen t from people in Russia. Eating, living, clothing and language and other habits are different form p lace to place. The nation¶s culture will also determine if the product of the international business set up has any scope at all. One cannot launch an alcohol brand in an extremely conservative and orthodox society. They will basically find no market and it will be the most foolish thing for them to do to venture in such markets without checking the cultural background. A business that is extremel y successful in India cannot expect the same result in Saudi Arabia for example and the reason is cultural diff erences. The satisfaction of the end user matters in the end and this also has a cultural bearing. For example in some communities people do not eat meat at all. Take Tibet as a country where most monks do not eat commercially cooked food. Launching fast f ood businesses in this country may still be successful because of the number of tourists who visit here. However, they have to al so study the environmental needs before staring out.
In business terminology there is process called as "environmental scanning" I know about this term as I hold a management degree. This process involves the monitoring and evaluating the environmental changes and trends. As changing in trends gives new dimensions to the organization to have a modern and intelligent approach, those organizations which pay attention to their environments seem to perform well. Also they will not be affected by the word change. Change is the word which brings challenges to the business world . As change is a universal aspect of every enterprise. Every enterprise must meet the challenge of continually reorganizing itself to achieve its target goals. Challenges faced by the organization are generally in terms of change in technology,government policies, competitors in terms of technology which brings re-engineering process, suppliers, demand of customers, market research, publicity, availability of resources, decision making by the management. Restraint in any of these entities will result in the falloff of business strength. Social factors can also affect the business strategies in terms of circumstances prevailing in the same country or with whom they are making business. There is always a risk factor involved in such cases. Both economic and political environment of the counties have great impact on managing local and international business. Instability in these areas brings challenge to the entrepreneurs.
Since we are talking about international business here we would like to believe that the other end of the business is located in a fast developing country and not in third world. Every business has its difficulties and presents is own challenges in when it comes to operating it successfully. For example , the nature of business may not be accepted openly in the targeted country because of cultur al differences. Also, international businesses face several restrictions like acceptance, usability, application of the product locally and customer service issues. Even th ough English is a very popular language it is in the end spoken only in a few countr ies as a primary language. Some of the people in other countries have never uttered a single word in English their entire lives. So the company which is starting a business in such a place s hould have a contingency plan where they can provide service in th eir language for example. If a company can cross over the language and cultural barriers, then most of their blocks have been cleared. Also the busines s ethics matter and the any international organization cannot have standard ethics that apply globally. T hey have to be changed and altered.
Important Information To An International Business
The main aim of any international business to be successful in the countries they are operating and make their products or service a global name. This is not very diff icult to reach as the global standards are uniting and also technology has become the biggest aid for business.
Every organization has to be prepared to take up the challenge by having all the information related to the business. They ha ve to work with a lot of precision and start planning in terms of future and not what has gone by. This advice is all the more applicable for small businesses and startups that are expanding. Global policies for every country different and an international organization sho uld comply with the local standards and also where they have the business presence. There are some key factors which decide the fate of the company and this includes the risk management. In the United States, a trend that has been continuing since the last decade is outsourcing of services to countries like India, Bangladesh and Pakistan. A lot of factors come into play like cultural barriers and every international organization h as to have someone from that country in their organization to be able to facil itate the business. By employing local people, most of the business transition and processes can be smoothened out and also through training the creases can be ironed out. Economic conditions mainly govern the success or failure of the business and they s hould be prepared in advance for their business plan backfiring.
What Is The Importance Of Global Trade ?
Global trade is very important for all the countries in the world. If a country is not open to global trends and businesses, then it is their loss and not gain. Global business does come with its advantages and a few disadvantages but overall they are beneficial at the end of the day.
When a global business steps into a new market it is bringing chances for employment and also improving the local conditions. A country cannot function independently with absolutely no involvement from others and be successful. If a country has to be marked on the map, then they should have some kind of trade and commerce relationship with other countries. There are several other useful outcomes of global business like exploring of new products and also coping with incompetence. For example, the medical in dustry has several advanced products in the developed countries. These equipment, products and medications are very useful and effective in treating some life threatening diseases. A lower ranked country has no choice bu t import them from such countries an d this will show up negatively on the fiscal budget for the country. Instead if they welcome other global businesses to their country the productions costs go down and also the needs of the people are met.
Global business also increases the overall gross domestic product (GDP) and the economic conditions for a country. When there are more products available the consumers spend more and private investments increase. The net exports and imports increase and the overall growth are noticed.
Why Do Cultural A nalysis Before Start An International Business ?
Every business that is planning to start its operation in an international location should first study the location thoroughl y. They should completely understand the local market and also do a through cultu ral analysis of the place.
Cultural analysis helps the business in setting several parameters for decision making, adapting to new needs, implementation and also monitoring the effectiveness of the business. Executing a business in a cross cultural enviro nment is very difficult. Every
country has its own unique cultural requirements and you can notice this on a wider perspective. People in China are differen t from people in Russia. Eating, living, clothing and language and other habits are different form p lace to place. The nation¶s culture will also determine if the product of the international business set up has any scope at all. One cannot launch an alcohol brand in an extremely conservative and orthodox society. They will basically find no market and it will be the most foolish thing for them to do to venture in such markets without checking the cultural background. A business that is extremel y successful in India cannot expect the same result in Saudi Arabia for example and the reason is cultural diff erences. The satisfaction of the end user matters in the end and this also has a cultural bearing. For example in some communities people do not eat meat at all. Take Tibet as a country where most monks do not eat commercially cooked food. Launching fast f ood businesses in this country may still be successful because of the number of tourists who visit here. However, they have to al so study the environmental needs before staring out.
In business terminology there is process called as "environmental scanning" I know about this term as I hold a management degree. This process involves the monitoring and evaluating the environmental changes and trends. As changing in trends gives new dimensions to the organization to have a modern and intelligent approach, those organizations which pay attention to their environments seem to perform well. Also they will not be affected by the word change. Change is the word which brings challenges to the business world . As change is a universal aspect of every enterprise. Every enterprise must meet the challenge of continually reorganizing itself to achieve its target goals. Challenges faced by the organization are generally in terms of change in technology,government policies, competitors in terms of technology which brings re-engineering process, suppliers, demand of customers, market research, publicity, availability of resources, decision making by the management. Restraint in any of these entities will result in the falloff of business strength. Social factors can also affect the business strategies in terms of circumstances prevailing in the same country or with whom they are making business. There is always a risk factor involved in such cases. Both economic and political environment of the counties have great impact on managing local and international business. Instability in these areas brings challenge to the entrepreneurs.
