Present unit defined a scenario upon various aspects of global business environment along with the influence of global market upon company functions, structure, strategy and culture. In order to assure maximum success on global platform mentioned below topics are required to be consider by organisation.
- Identify important factors that are driving trade and global commerce.
- Evaluate startegic challenges complexities that can impact negatively upon organisation.
- Globalisation influence upon entity leadership structure, functions, organisational governance and culture.
- Analyse decision-making effectiveness on global scale along with numerous routes of internationalisation.
Business is place where activities are done to operate business for earning some profits. It is essential to work as per change in external environment. Globalisation means business starts dealing with other nations also. In this there is interaction between people for business purposes. It is essential to analyse market and take actions which help them to achieve business objectives in better and effective way (ApÄƒvÄƒloaie, 2014). Some businesses are runs in various parts of company and it is essential to work as per requirement. There is difference in activities performed at domestic and international business. This report is based on BMW which is one of the best and loyal brand in car segment which is German multinational company relating in luxury auto-mobiles and motor cycles. This company was established in 1916 having head quarter in Munich, Bavaria. In this report there is decision about key factors of globalisation, complexities in operating in global business environment, role of organisation's culture, structure, impact of globalisation on decision making strategy, etc.
TASK 1 P1 Factors of cost, market, environment and competition which assist global trade
Business is one of the important to work with change in plans and policies. BMW is new brand which is famous for its loyalty and brand value. It operates in various parts of world. Manager of BMW organisation has to keep business policies flexible through which they can achieve targets in effective way. There is requirement of cost, competition, market, environment, etc. has to be taken into consideration to make business growing. While taking about policies of BMW they take policies their strategies are flexible which help to achieve targets in efficient and effective way.
There are various factors which has to be undertaken by managers through which they can achieve targets in efficient and effective way. There is description about cost, market, environment and competition which help to perform business activities in efficient way (Axelrod and VanDeveer, eds., 2014).
Competition- Competition is one of the factor which help to perform business objectives in effective way. There are many competitors of BMW such as Audi, Volkswagen, Mercedes- Benz which al;so tries to attract customer. After LPG policies started in India, it s important to know what can be done through which they can achieve targets in effective and efficient way. Globalisation is due to perform objectives through which they can perform activities in effective and efficient way. Competition helps society in getting good quality services through which customer gets satisfied and hence the y ready to use brand.
Cost- This is the factor which has to b e considered while pursuing business. In globalisation to make good image, it is essential to know through which channel they can enter in international market. There is involvement of cost to run business in various countries such as licensing cost, plant establishing, labour cost, etc. so it is essential to proper analyse market and then select option which is most suitable for association (Belás and et. al., 2014). If cost get increased then profits maty get lower. BMW is the brand which is not so frequent in market, so it is important to work as per demand of customer, so sales can be done through which profits can be generated.
Environment- This is the place where business runs. These days there are many harmful gases are there is environment through which organisation can get affected. To avoid negative impact of gases in environment it is essential to work as per government norms. This not only provides ease in operating while at the same time it helps to make good image in global market. Government is coming with concept of CSR which helps to protect environment and perform actions through which there is some welfare for society.
Market- Market is part of environment which helps to perform activities to achieve targets. There are many component in market such as competitors, customers, supplier, etc. which are directly related to organisation. In market many ups and downs are taking place, so it is important to deal with them,m. This can be possible if manager is ready to accept new policies and motivate employees to give their best.
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It is not easy task to establish in international market and deals with global business environment. There are possibilities which help organisation have get its image diluted because of changed in business environment (Belás and et. al., 2015). There is requirement of managers to take care of factors which affects business policies. It is essential to talk abut changes which can be performed in efficient way. Entry in globalisation market is done with the help of various modes such as franchisee, licensing, partnership, etc. it is necessary to make good relations with them too.
Challenges faced by BMW in operating globally is as under-
Communication- This is the way through which people share their views with each other. There is change in plans and policies through which they acme to know about use of techniques which help to perform activities in effective way. There is use of communication techniques within organisation also. While operating business in different country, there is need of technique which provides frequent news and information, so business operations does not get halt (Carneiro and Brenes, 2014).
Human Resources and Talent Management- There is requirement of various qualities through which business operations can be achieved. It is essential to know what qualities are required in customers and then select best candidate. At some different place, it is tough to analyse qualities which are required for specific post.
Innovation: This is important component which has to be undertaken while dealing with changes in market. There is need of innovation which helps to approach customer and provide them satisfaction. It is tough for managers to convince customer to purchase car, as it is highly expensive which helps to make good image in market.
Choosing right countries- Globalisation is the way through BMW can operates in business in various different countries. It is essential to select best countries in which they can expand business. It is important to know which country is most suitable. To analyse beast country, this is essential to know what can be done and this helps to achieve business objectives in efficient way (Cavusgil and Knight, 2015). Selection of best country is not easy task if wrong country is select then it affects all business dealings.