Business organisations in a global context commerce essay

The process of strategic planning is not easy and simple one, it involves a whole lot of industry exploration and clear understanding of your market, your customers, your competitors, your team, your main competencies, the environment in which you are working, changing parameter, your eyesight and mission etc. They are not easy question to answer and it’s not a quick process. Effectively management of folks can produce substantially improved economic performance. Various terms have already been used to describe such management practices: high commitment, high performance, high involvement, etc.

A social unit of individuals, systematically structured and managed to meet a need or even to go after collective goals on an ongoing basis. All institutions have a management structure that determines human relationships between capabilities and positions, and subdivides and delegates roles, obligations, and authority to carry out defined tasks. Organizations are open systems for the reason that they affect and are affected by the environment beyond their boundaries.

Globalisation can be a phenomena that is utilized to interact among different countries attempting to develop global economy. This is a procedure for connecting the world’s market segments and business with one another. It is basically a process by which numerous economies, cultures and societies are combined jointly by latest communication program. Globalisation has been identified by different authorities at different places, according to an economist Harris (1993), "the increasing internationalisation of the production, distribution and marketing of goods and offerings is globalisation". Another definition of globalisation can be "the functional integration of national economies within the circuits of industrial and monetary capital".(Rhodes, 1996).

The key distinctions between global business operations:-

Businesses operate in a worldwide context: even if they don’t trade directly with different countries, they could be afflicted by a domestic shortage of competent labour or could be subject to advancements on the global economic markets. Globalization and overseas business as business terms are often used synonymously in everyday conversation.

As economic pressures continue to abound, many corporations are looking within their organizations to regulate how to improve operations and reduce costs. Cost constraints, efficiency benefits and productivity measures are generally sought to do this objective. It is no real surprise that production of or improvement in an enterprise’s service delivery unit is desired. Many companies have developed some facet of shared services, and many more have got embraced the outsourcing service delivery model as you lever to drive economical improvement. On the other hand, we believe there happen to be a good amount of opportunities remaining with respect to shared services generally speaking along with some terrific opportunities for an emerging idea called "global business services" to drive significant improvement and manage all program delivery model alternatives.


A successful shared services model commonly incorporates these concepts:

  • Focused company resources
  • Process ownership as an integral characteristic
  • Critical ideals of partnering, teamwork and adding value
  • Effective leverage of equipment and technology
  • Accountability by professionnals with service focus (internal and external)
  • Strong communications and governance principles
  • Centre of excellence and a firm asset for producing talent
  • Results that emphasize efficiently meeting customer requirements
  • Focal stage for company best practices

Responsibilities of organisations

Importance of ethics available world is usually superlative and global. New trends and issues arise on a daily basis which may create an essential burden to institutions and end consumers. Nowadays, the need for proper ethical behaviour within corporations has become imperative to avoid possible lawsuits. The general public scandals of corporate malfeasance and misleading methods, have damaged the public perception of several organizations. An organization’s tasks are not limited by key stakeholders. Although governmental bodies and regulatory agencies usually do not usually have ownership stakes in corporations in free-industry economies, they do play an active part in trying to ensure that organizations accept and connect with their obligations to primary stakeholder groupings. Organizations will be accountable to these secondary stakeholders.

All companies, especially large companies, have multiple stakeholders. One way of classifying stakeholder groups is to classify them as major or secondary stakeholders. Key stakeholders involve some direct fascination or stake in the organization. Secondary stakeholders, on the other hand, are public or specialized interest groups that don’t have a direct stake in the organization but are still damaged by its operations.

The impact of exterior factors on organisations: There is a basic rhyme which goes:

Environment to each must be. All there is that’s not me.

You can easily see therefore that the business enterprise environment consists of all those things outside the business. The business needs to keep a watchful eyesight on the environment because it is continually changing. Key element elements in the environment are:

1. Competition. Rival corporations are continuously changing what they have to offer. They could lower prices, draw out new products, engage in exciting new promotional initiatives, and a range of alternative activities.

2. Political factors. The action of authorities affects business and various other organisations. Governments are continually changing the guidelines and the laws that affect business. That is illustrated incidentally where government rules affect institutions. Simon Jenkins in an document in The Sunday Instances, on 24 September 2006 illustrates this very well when he wrote: ‘This federal government tries to preserve control of every school. Since arriving at office its education division has issued 500 restrictions, 350 policy targets, 175 performance targets , 700 notes of guidance, 17 programs and 26 separate incentive grant streams.’

3. Economic elements. The economy includes businesses, individuals and federal government. The international economy consists of the economies of all the countries on the globe. The economy includes many markets – the market for goods, the marketplace for services and the marketplace for money are fundamental elements of this. These markets determine the price that business has to pay for its resources such as for example labour, and recycleables. Businesses are continually damaged by changes in the economy.

4. Social factors. Society comprises of all the persons in a given area. It is necessary to be able to determine what the main styles are that are occurring in contemporary society because these trends affect business. For example, changes in age habits, such as the more and more older people in the population, determine which products are popular. Therefore there are social styles which are afflicted by fashion – for instance this year some items will end up being ‘in’, whereas next year nobody or hardly any people would want to buy them.

5. Technological factors derive from the development of latest techniques, i.e. brand-new types of items and new processes to create products. For example, recent years have seen an enormous change in information technology which has transformed just how we operate our lives. For instance, today a lot more than 90% of young people possess a mobile

phone. (

The affect of global elements on business organisations

Businesses are influenced by an exterior environment up to they are affected by the competition. Global factors influencing organization are legal, political, public, technological and economic. Understanding of these factors is essential while creating a business strategy.

a. Social factors – These factors are related to changes in social structures. These factors give insights into behaviour, tastes, and lifestyles habits of a inhabitants. Buying patterns are considerably influenced by the alterations in the structure of the population, and in customer lifestyles. Age group, gender, etc all decide the investing in patterns and knowledge of such changes is critical for developing approaches which are in line with the market situations. In a global environment it’s important that business strategies are designed remember the cultural and cultural differences that vary from country to country. Consumer religion, language, lifestyle patterns are all important info for successful business management.

b. Legal factors – These factors that influence business strategies are linked to changes in government regulations. For a successful business operation it is important that the firms consider the legalities involved in a specific situation and should have the capability to anticipate ways that changes in laws will affect just how they must behave. Laws keep changing over a period. From the point of view of business it’s important that they are alert to these adjustments in the regions of consumer safeguard legislation, environmental legislation, health & safety and employment laws, etc.

c. Economic factors – These factors involve adjustments in the global market. A rise in living standards would finally imply an increase in demand for products thereby, providing greater possibilities for businesses to create profits. An overall economy witnesses fluctuations in monetary activities. This would imply that in case of a rise in economic activity the demand of the merchandise will increase and therefore the price will increase. In case of reduction in demand the prices will decrease. Business strategies ought to be developed remember these fluctuations. Other monetary changes that affect organization include improvements in the interest, wage costs, and the fee of inflation. In the event of low interest rates and upsurge in demand Businesses will become encouraged to grow and take dangers. Therefore, business strategies should have space for such fluctuations.

d. Political elements – This refers to the changes in government and government policies. Political factors significantly influence the operation of business. This has received significant importance off overdue. For example: companies operating in europe have to adopt directives and regulations made by the EU. The political arena includes a huge influence after the regulation of businesses, and the spending electricity of consumers and various other businesses. Organization must consider the steadiness of the political environment, government’s insurance policy on the economy etc

e. Technological factors – These factors significantly influence business strategies because they provide prospects for businesses to look at new innovations, and inventions. This helps the business to lessen costs and develop services. With the advent of modern communication systems, technological elements have gained superb impetus available arena. . Huge volumes of information can be securely shared by way of databases thereby enabling great cost reductions, and advancements in service. Organisations have to consider the latest relevant technological advancements for their business and stay competitive. Technology will help business to gain competitive edge, and is a significant driver of globalization. While creating the business strategies organizations must consider if utilization of technology allows the firm to manufacture product or service at a lower cost. Firms can select different modes of distributions with the help of technology. It is becoming easier for corporations to talk to their customer in any portion of the world. (

Strategies utilized by organisations operating globally

Operations strategy is the production of a long-term plan for using the major sources of the firm for a high amount of compatibility between these information and the firm long term corporate strategy. Operations strategy addresses very broad questions about how these major resources should be configured to achieve the desired corporate objectives. A number of the major long-term problems addressed in procedures strategy include:

• How large do we produce our facilities?

• What sort of processes do we install to help make the products or provide offerings?

• What will our supply chain look like?

• What will be the type of our workforce?

• Just how do we ensure quality?


Managing culture, culture and economy challenges

Companies move to various other countries to broaden their business and increase the profits. When corporations do move to various other countries they face distinct challenges like meeting native customers demands, understanding the rules or regulations of municipality, language problems etc. If we summarize these problems certainly, there are three main concerns in moving organization to overseas countries which are interpersonal, cultural and economical factors. Companies do have to understand the tradition of the united states so that they can run their business properly. They need to understand their interpersonal customs and economy of the country. For instance McDonalds, KFC or Subway, these companies have operations worldwide. They sales poultry, pork and meat products. Now expanding their organization to Parts of asia, they first get understanding of their social, cultural and economy factory. Taking exemplory case of Muslim countries, when these three firms moved to Muslims countries they can not sell Pork or Non-Halal products in Muslim countries because it is certainly against their cultural values or religious ideals. So they do promote Halal goods to these countries and steer clear of selling of Pork. This demonstrates companies need to change themselves regarding to local culture and social lifestyle to accomplish good business far away. Also they do offer prices according to regional economy or purchasing power of customers. They can not apply the same rates both in US, UK, India and Pakistan for the reason that economic condition of all these countries is different.


There is without doubt that with the progress in globalisation living common of people in lots of countries has improved but there is also no denial to the actual fact that most of benefits are being obtained by formulated countries. They will be exploiting the rights of producing countries in the brand of globalisation. The profits gap between designed countries and producing countries has been heightened which is a subject of concern. Through globalisation many companies have also gained benefits especially multinational businesses and big firms. They are receiving huge earnings through globalisation. However they are also exploiting people’s right to some degree, like they are not offering the same pays to growing and created countries.