...Unit 12 Assignment 1 P1 - Explain the international business environment in which a selected business operates. The business that I have chosen to produce a report on how they could expend their business internationally is my own business, Impossible Project. Impossible Project is a fashion brand based in the UK. We design and produce our own brand of high-end designer clothing and are just selling in the UK at the moment. It is a relatively small business at the moment, however we have the capacity in terms of finance and scale to start looking at trading internationally. The country Impossible Project has targeted to start of their international journey is China. I have chosen to use China for a variety of reasons; one being it is a BRIC country. “BRIC is an acronym for the economies of Brazil, Russia, India and China combined. The general consensus is that the term was first prominently used in a Goldman Sachs report from 2003, which speculated that by 2050 these four economies would be wealthier than most of the current major economic powers.” - http://www.investopedia.com/terms/b/bric.asp Political * Being a communist country means Chinese consumers feel forced into supporting Chinese brands as a pose to UK brands. | Economical * According to the latest government figures, growth picked up to 7.9% in the final three months of 2012, from 7.4% in the previous quarter * China is a BRIC country and will soon be one of the leading economic powers | ...
Words: 441 - Pages: 2
...University of Nottingham Ningbo China Business School Academic Year 2015/16 Autumn Semester INTERNATIONAL BUSINESS ENVIRONMENT Lianxi Zhou EBay: China and India External Business Macro Environment Entry Report Group 2 Hugo John MASON; ID: 6513963 Boon Long Tan; ID: 6512494 Sung Jun PARK; ID: 6508247 Yasong ZHAO; ID: 6511938 Word Count: 3000 Table of Contents Introduction 2 China 3 Political Environment 3 Political and Legal System 3 Five Year Plan 3 One Belt, One Road 4 Risk 4 Economic Environment 5 Market Size 5 Currency 5 FDI 6 Socio-Cultural Environment 8 Guanxi 8 Hofstede’s Model of National Culture 9 China Recommendation 11 India 12 Political Environment 12 Political and Legal System 12 Opportunity 13 Risk 13 Economic Environment 14 Market Size 14 Currency 14 FDI 15 Regional Trade Blocs 16 Risk 16 Socio-Cultural Environment 17 Socio-Demographic 17 Trust and Uncertainty Avoidance 17 Human Resources 18 India Recommendation 19 Reference 20 Appendix 25 Introduction In recent decades a global shift has arisen and revolutionized the way businesses operate as we move into a more integrated and interdependent global economy. Known as Globalization, the e-commerce industry has been the crux of such a radical metamorphoses of nations. National economies are no longer self-contained and independent. China, having one of the fastest growing e-commerce markets at 22.6% (iResearch, 2014) has...
Words: 4821 - Pages: 20
...1. International business environment Business mean to busy in an activity, which are related to money almost business have 50% chances of profit and losses.(Morrison, j. 2002)Business is operated in every part of the world. As the business grow. It is looking for new opportunities across the border. International business is the term use for the operation and objective of the organisation that have interest in other countries. For example Tesco, Ford, General Motor, McDonald, Disney, so many other companies. These companies have key interest to standardise their product for general acceptance. The international business becomes more complex. Tie between the different societies and organisations. (Meldrum, D.H) as businesses inter into new market it chances of 50% losses increases. Due to different in economic, political, cultural structure, policies, geography and currencies. These factor decreases profit ratio of international investment. There are no specific criteria to measure such in-stability. Every investor used their own method and measure. Uncertain condition of country make easy for international business to design their own stability criteria. (Considering risk in international business) Business has no idea about the local risk. It's difficult to operate and manage in such condition where the Culture, Social, Economic, Political, and legal structure are not stable. In such cause the international business need to take all the measurement either it`s Commercial...
Words: 3378 - Pages: 14
...Every small, medium enterprise’s dream is to be able to trade on an international platform, just like how every little kids dream of their ambitions. However, in the process of pursuing that dream, many of these kids were steered away and diverted due to the various situations and experienced that moulds them as a mature being. A business organisation surprisingly, shares a common conduit, but in a whole altered state, even more complex because of the immersion of different cultural, social, economic, political and legal forces. All those forces play a vigorous part in the success of business, especially when an organisation decides to go international. For example, let’s apprehend the case of Tesco breaking through the South Korean market in the year 1999. Tesco’s nifty idea to form a joint venture with the giant electronic company, Samsung, has ever since becomes the core of its growing success to be one of the biggest retailer in the world. Lucky for Tesco, the collaboration made the whole process of understanding the external environments which otherwise would require even more cost and time consuming. For example, Tesco gained new in depth knowledge about how the local market works, and acquire the best locations for store. In addition to the advantages, Tesco accomplished well to meet the demand of the Korean consumers, localize their stores and also introduce its own way of work to the South Korean country. Evidently these external forces are essential for the future of...
Words: 437 - Pages: 2
...[Date] [Date] INTERNATIONAL BUSINESS ENVIRONMENT INTERNATIONAL BUSINESS ENVIRONMENT Globalization refers to the widely flow of production factors within the entire globe in order to understand the optimum resource allocation. Different authors provide different definitions of globalisation with their profound research. According to international monetary fund, globalization increases the rapid and extensive transmission of technology along with international commodity, transactions of service and scale of global capital flow. The mutual independence of economy is also strengthened by Globalisation. Economic globalisation builds international capital, production, technology, market, resources and manpower in order to understand reasonable and effective allocation. Competition between the countries are intensified during the effective promotion of global cooperation. This is due to the limited resources and extended capital in economic perspective. In terms of politics each country tends to increase the strength to achieve more profit (Broad & David, 2006). The independent flow of production factors in the world are accelerated though economic globalization which forms a global market. Therefore the global operation of the multinational companies along with the involvement of global industrial structure are promoted. The advantages of capital and technology can be used by the developing countries and by transferring these capital and technology the...
Words: 3863 - Pages: 16
... competitive for large scale use. LITERATURE REVIEW Corporate Strategy of shell By being more upstream Shell aims to focus its investments on long term, high return projects to develop oil and gas resources, and grow the companies leading liquefied natural gas business. Downstream profits involves; generating more cash by reshaping integrated oil products and petrochemicals portfolio to enhance operations and focus on growth markets, particularly in Asia. Shell believes that this strategy will improve their business performance and increase their contribution to sustainable development. “Stronger emphasis on our upstream activities and fast growing markets will help us deliver the energy the world needs for economic growth and poverty reduction”. Shell aims to increase focus on producing cleaner burning natural gas, in so doing reducing dependency on coal. Shell is aware that the growing demand for oil and gas presents sustainable development challenges. Producing and using this extra energy is only sustainable, and socially acceptable, if ways are found to combat the risks to the climate and avoid health, safety and environmental incidents. “We recognize that we will not achieve our strategy and improve business...
Words: 2633 - Pages: 11
...INTERNATIONAL BUSINESS ENVIRONMENT Question 4: Compare and contrast the activities of two companies of your choice in the same industrial sector in developing new technology to try to maintain competitive advantage. CONTENTS INTRODUCTION 3 TECHNOLOGICAL DEVELOPMENT 4 (i)PRINCIPAL STAGES OF TECH DEVELOPMENT 4 (ii)BASIC INDEXES OF TECHNOLOGY 4 ROLE OF R&D 5 TECHNOLOGICAL INNOVATION 7 ANALYSIS 10 (i)SAMSUNG 10 (ii)APPLE 12 PORTER’S 5 FORCE MODEL COMPARISON 15 SWOT ANALYSIS 17 CONCLUSION & RECOMMENDATION 19 REFERENCES 21 INTRODUCTION This paper seeks to compare core and enabling technologies of two organizations in the consumer electronics industry. Apple is currently first in the brand value while Samsung is sitting in the second position. Whereas Samsung has the maximum market share in the mobile industry. Apple leads the line in the tablet segment. Both the companies compete fiercely in almost all the segments such as Laptops, mobiles. Apple’s is preparing the next innovative product called the Apple Tv. Apple and Samsung both generate huge profits but it is the latter which returns huge revenues each year and Apple is slightly losing its charm since Samsung is coming up with innovative and high tech products every year.. This paper further analyzes contrasting strategies of core and enabling technologies between two...
Words: 4213 - Pages: 17
...The international business and trade environment is the backbone of global economy. Trade agreements to buying and selling goods and services internationally give manufacturers in various countries the opportunity to expand beyond the domestic market. Trading across national borders increases sales, creates jobs, balances seasonal fluctuations and provides a variety of products and services. As the global economy continues to strengthen, international trade continues to be in demand. 4.2 OBJECTIVES Increases Sales For some businesses, the drop in the value of the dollar increases business internationally. To capture the international market, businesses have launched Internet marketing campaigns and websites targeted at consumers in specific...
Words: 9682 - Pages: 39
...INDEX Introduction The challenge of crossing cultural boundaries The meaning of culture: foundation concepts Why culture matters in international business National, professional, and corporate culture Interpretations of culture Key dimensions of culture Language as a key dimension of culture Culture and contemporary issues Managerial guidelines for cross-cultural success Page 1 to 1 Page 1 to 5 Page 5 to 6 Page 7 to 9 Page 9 to 9 Page 10 to 14 Page 14 to 17 Page 17 to 19 Page 19 to 21 Page 21 to 23 1 Introduction There are few things more representative of U.S. culture than American football. It is an extravaganza, complete with exciting halftime shows and peppy cheerleaders. The game exemplifies national pride. The national anthem is played, flags are unfurled, and uniformed players charge up and down the field like an army in the throes of often violent conflict. The teams’ huddles divide the game into small planning sessions for the next play. In the United States, the National Football League (NFL) oversees the sport and, like any successful business, wants to score in new markets. The NFL first tackled Europe in 1991, with plans to establish American football there. After years of failed attempts, NFL Europe emerged as six teams, five of which were based in Germany (such as the Berlin Thunder, the Cologne Centurions, and the Hamburg Sea Devils). Earlier teams established in Spain had failed. Why did American football triumph in Germany but fail in Spain? An...
Words: 10571 - Pages: 43
...Studying Legal Environment of International Business INCOTERMS ------------------------------------------------- General Transport[edit] EXW – Ex Works (named place of delivery).[edit] The Seller makes the goods available at his/her premises. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a buyer incurs the risks for bringing the goods to their final destination. The seller does not load the goods on collecting vehicles and does not clear them for export. If the seller does load the goods, he does so at buyer's risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale. The buyer arranges the pickup of the freight from the supplier's designated ship site, owns the in-transit freight, and is responsible for clearing the goods through Customs. The buyer is responsible for completing all the export documentation. Cost of goods sold transfers from the seller to the buyer. FCA - Free Carrier (named place of delivery)[edit] The seller to deliver goods to a named airport, terminal, or other place where the carrier operates. Costs for transportation and risk of loss transfer to the buyer after delivery to the carrier. When...
Words: 2038 - Pages: 9
...ADEGBENRO ELEWADE MIB 34 LEGAL ENVIRONMENT OF INTERNATIONAL BUSINESS. QUESTION 1 The following rules and principles will be used to analyse if this new trade policy is permissible. WORLD TRADE ORGANISATION RULES AND PRINCIPLES - * Trade discrimination is forbidden- There is a trade discrimination in this policy by subjecting Mediterraneo and Equatoriana to a tariff and excluding Oceania from the tariff policy and also this trade discrimination occurred because Oceania and Pacifica are members of a customs union modeled on and using the same rules at the European Union * Each state has to afford most-favored-nation status to all other WTO member states equally- Pacifica only offered most-favored-nation-status to only Oceania, instead of offering this status also to the other WTO members. National Treatment Rule * A WTO member state must treat imports equally with its own domestic products once the imports are inside its borders- Pacifica subjected foreign cars to foreign sales tax at the point of sales but excluded cars manufactured in Pacifica from this policy, this should not be done because the national treatment principle states that foreign goods should be treated as domestic goods, so Pacifica should not subject this foreign goods to foreign sales tax since also the domestic goods are not subjected to this tax. * Products must be treated equally vis-à-vis their content; they may not be discriminated against because of the way in which they were made-...
Words: 1376 - Pages: 6
...ADEGBENRO ELEWADE MIB 34 LEGAL ENVIRONMENT OF INTERNATIONAL BUSINESS. QUESTION 1 The following rules and principles will be used to analyse if this new trade policy is permissible. WORLD TRADE ORGANISATION RULES AND PRINCIPLES - * Trade discrimination is forbidden- There is a trade discrimination in this policy by subjecting Mediterraneo and Equatoriana to a tariff and excluding Oceania from the tariff policy and also this trade discrimination occurred because Oceania and Pacifica are members of a customs union modeled on and using the same rules at the European Union * Each state has to afford most-favored-nation status to all other WTO member states equally- Pacifica only offered most-favored-nation-status to only Oceania, instead of offering this status also to the other WTO members. National Treatment Rule * A WTO member state must treat imports equally with its own domestic products once the imports are inside its borders- Pacifica subjected foreign cars to foreign sales tax at the point of sales but excluded cars manufactured in Pacifica from this policy, this should not be done because the national treatment principle states that foreign goods should be treated as domestic goods, so Pacifica should not subject this foreign goods to foreign sales tax since also the domestic goods are not subjected to this tax. * Products must be treated equally vis-à-vis their content; they may not be discriminated against because of the way in which they were made-...
Words: 1376 - Pages: 6
...Kozminski International Business School MODULE HANDBOOK Management in Context GRADUATE PROGRAMS Academic Year: 2015 - 2016 Module Tutor: Kaja Prystupa-Rządca © Kozminski University 2015 str. 1 Kozminski University Management in context MODULE MANUAL ACADEMIC YEAR: 2015-2016 CONTENTS Page 1. Module Staff 3 2. Teaching and Learning Strategy 4 3. Recommended Readings 4 4. Module Assessment 4 5. Length 6 6. Structure of essay 7 7. How to start writing your essay 8 8. Grading 8 str. 2 1. Module Staff Office: Internal (direct) phone: E-mail: Office hours: str. 3 Room C/15 22 519 -21-65 kmprystupa@kozminski.edu.pl Please see current information on www.alk.edu.pl 2. Teaching and Learning Strategy Class Organization Please see detailed timetable below: dates may differ depending on which group you are attending – you will receive specific timetable with dates on the first day of class). Attendance and Participation As a general policy, I do not accept latecomers in this class. People who are more than 5 minutes late for the class will not be allowed to participate in the course. 3. Recommended Readings Several copies of “Organizational Behaviour and Management” by D. Knights and H. Willmott are available in the library. This book is an excellent companion to this course and should be also helpful in preparing your final assignment (Essay). It may also be a useful supplementary...
Words: 2845 - Pages: 12
...Contents Introduction 3 Microenvironment 3 Macro-environment 3 PESTAL 4 Political/Legal 4 Economical 4 Social 4 Technological 4 Environment 5 Porters 5 force analysis 5 Threat of New Entrant 5 Threat of Substitutes 5 The bargaining power of buyers 6 The bargaining power of suppliers 6 The intensity of rivalry among competitors in the industry 6 Structure of industry 6 Conclusion 7 List of References 9 Bibliography 10 Appendix 1 11 Introduction For this assignment I will be investigating the structure and analysing the environment of the music retailing industry. To analysis the industry I will be using three main techniques. These techniques will be a macro and micro environment analysis, porter’s five forces and a PESTEL analysis. Microenvironment The microenvironment is the environment which has a direct effect on the business or industry, such as customers, staff, rivals and etc. The microenvironment is also not confined to one country either because in today’s market suppliers for example often come from all over the world. The effect of the microenvironment is often what leads a business to be a success or failure. The main players in the music retailing industry are Apple, Amazon and HMV (Datamonitor, 2007). The biggest and most recently change in the music industry has been its distribution channels. The only way music could once be purchased was through buying a CD from a music retailer. Now music can be downloaded via a computer...
Words: 2513 - Pages: 11
...al The cultural, political and legal environment of international business Abstract A study of the elements of a domestic market and those of an international market may reveal many crucial differences, especially political, legal and cultural differences. For example, the "rules of the game” of business in the international market are diverse, changeable and often unclear. The international firm may have to content with different legal and ethical standards in different host countries. In this paper the parameters of the political, legal, and the cultural environment of international business will be considered, The paper also relates how political, legal, and cultural incidents or situations may become roadblocks to the smooth operation of business ventures in foreign countries. Misunderstandings and breakdown in communication often arise from differences in perception by executives who are not from the same cultural, legal and political background. International investors need to know what elements in a foreign culture have the greatest influence over consumption patterns in general and particularly the consumption behaviour to their specific product. By reflecting on the language, religion, demography, climate, values and beliefs, education, labour, roles of women, family, ethnic groups and other similar elements, the international business person will be able to, not only participate in the international economy with a better perception of the situation, but also be able...
Words: 6545 - Pages: 27
