hii, guys.again i m here with usefull documents, this ppt is about global business environment ,it will help you to understand global business definit...
it focuses on the micro & macro environment of the business.Full description
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Business Environment Assignment
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Pie chart of Starbuck's market share and Porter's competitive five force are missing.
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Global business environment Presented By-SANDEEP
Definitions of World Business Environment Environment refers to all external forces which have a bearing on the functioning of business. these forces are almost givens within firm and their management must operate in a specific country and they vary from country to country incre inc reasi asing ng glo global baliz izat ation ion notw notwith ithst stand anding ing..
Business environment objectives Befor efore e we describe business envir environment onment objectives, it is desirable to be clear about vision, mission and objectives.
Vision-a vision is broad explanation explanation of what the firm exists and where it is trying tr ying to lead. the vision provides the point of reference reference on the horizon a beacon of light.
Mission-a mission statement statement outlines the fundamental purpose of the org organiza anization. tion.
Objectives Of
Global Business Environment
Profit
Growth
Power
Employee satisfaction satisfaction and development
Quality products and services
World market leadership
Joy of creation
Service to society
Factors
Which Affecting Business Environment
1)External envir environment onment
Political-legal
Economic
Technological
Physical
Cultural
global
Contd. 2)Internal
environment
Suppliers
Rival firms
Buyers
New entrants
Substitute products
Global Business Strategy Formulation
Why globalize? ±
±
±
±
±
±
causes the flow of ideas, services, and capital across the world offers consumers new choices permits the acquisition of a wider products
variety of
facilitates the mobility of labor labor,, and technology
capital,
provides challenging employment opportunities reallocates resources, makes m akes preferential preferential choices, and shifts activities to a global level 7
Global Strategy Formulation How Do Organizations Globalize? Stage One: Passive Response Importing: firm makes products and sells abroad Exporting: to foreign countries Stage Two: Two: Initial Entry Hiring foreign representation Contracting with foreign manufacturers Stage Three: Fully-established operations Licensing/Franchising Foreign Direct Investment ( FDI) - Joi Joint nt Vent Ventur ures es - Foreign Subsidiary
of Foreign involvement and investment needed by a global organization
High
Global business Strategy Formulation
Exporting: selling abroad, either directly to target customers customers or indirectly i ndirectly by retaining foreign sales agents and distributors Importing: selling other countries products in the home country countr y, either directly to target customers or indirectly Adv:
Disadv:
quick and relatively inexpensive test the waters and learn about customers high transportation costs tariffs and quotas danger of poor intermediary selection
Global business Strategy Formulation
Licensing: an arrangement where a firm (licensor) grants a foreign firm the right to use intangible (intellectual) property such as patents, copyrights, manufacturing processes, or trade names for a specified period of time, usually in return for a percentage of the earnings, called royalty Adv: small or insignificant investment Disadv: loss of control
Global business Strategy Formulation
Franchising:
an arrangement where a parent company (franchisor) grants a foreign firm (franchisee) the right to do business in a prescribed manner manner.. Usually involves a longer time commitment by both parties than required under licensing agreements
Adv:
small or insignificant investment
Disadv: loss of quality control
Foreign
Strategic Alliance: ±
±
a cooperative agreement between potential or actual competitors an agreement between firms that is of strategic importance to one or both firms; competitive viability
Joint Venture: ±
Direct Inves Investment tment
the participation of two or more companies jointly in an enterprise in which each party contributes assets, owns the entity to some degree, and shares risk
Wholly Owned Foreign Subsidiaries ±
±
provide for tightest controls controls by foreign firms very costly but can yield high returns
Review
Definition global
business environment environment
Objectives of global g lobal business envir environment onment
Factors which affecting global business environment
Global business strategy formulation
How
List type of strategy for global environment
to implemen implementt globa globall business business strategy strategy formulation
