Dba International Business Business Environment T1

Business Environment • “There’s no such thing as a straight forward deal. Market Dynamics, evolving regulations, Operational issues and cultural issues all present the danger of a mismatch” Charles knight.

Global Player • To be a global player does not mean that we go anywhere (any places) in the world. What we need is to choose the ones ( few places) that do best for our products and services

World News • In Europe 85% of the films and videos from USA • In Pakistan, KFC for middle class . “Eating outside is an entertainmrnt • BMW bought Rolls Royce (UK) • Democratic Republic of Congo - largest copper in the world • “change” a strongest motto for presidential election in USA, IRAN?

Globalization • Globalization is the production of products and distribution of products and services of a homogeneous type and quality on a world wide basis • The need to adjust global strategies for regional markets present major challenges for most multinationals • It is important to recognize that each Asian country has its own specific (unique) characters in terms of national culture and country specific advantage As such mixed global as well as specific business strategies are to be considered in relations to types of business entities , types of industry, HRM, government- business realtions and organization structure choices.

10 Risk factors For the Economy • • • • • • • • • •

Oil Prices Interest rates Inflation Weather Govt. Budget Management Political Conflicts Trade Barriers Uncertainty Govt. Policy World Economy Bubbles in the US Property Market

How to Compete in Global market • • • • • • • •

Create brand loyalty Quality Reputation Global Orientation Get access to low cost capital Organize global supply chain Research & Development Leverage human capital Productivity through infrastructure ,i.e ICT

International Business Analytical Framework • Level 1: Environmental Analysis • Country analysis ( Opportunity and threat • Industry Analysis ( Opportunity and Threat) • Individual firm analysis (strength and Weakness)

International Business Analytical Framework •

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Level 2: Strategic Formulation ( Options and Choices) Global and Country Responsiveness Homogeneous, differentiated, mixed Orientation of the Firm Ethnocentric, polycentric, regiocentric, geocentric Management Styles prospector, reactor analyzer, adaptor Types of Business Entity partnership, JV, wholly-owned, licensing, distributorship, agency Corporate and Business Strategy: growth, focus, differentiated, quality, cost leadership

International Business Analytical Framework •

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Level 3 : Strategy Implementation Production and Operations Marketing HRM Finance Business- Government Relations Labour-Management Relations