The Global Business Environment Assignment Sample
THE GLOBAL BUSINESS ENVIRONMENT: AN INTRODUCTION
Situation analysis can be defined as an overall examination of the business environment for any organisation that in turn can be helpful in the better projection of future success. In case of global firms, it is necessary to perform an extensive market research by which factors influencing business growth can be identified. As per the opinion of Dorstewitz and Lal (2021), both the internal and external factor analysis is opportunistic to gain better data about the market presence of a firm and evaluation of competitive advantages can be possible. Additionally, situation analysis provides scope to determine the loyal customers for an organisation and better understanding of products and services are opportunistic to develop future sustainability.
Situation analysis is necessary for any local or global business as this has helped to forecast any problem and its correct solution is explored. In the words of Jones et al. (2018), importance of situation analysis lies to find out the strategies and various types of business activities adopted by a company for making its global presence more viable. It is required for any business to overcome the business problem as this is the only way to grow continuously in competitive market. Other than this, situation analysis has impacted in the business process both in negative and positive way by finding out the opinions as well as experiences gained by stakeholders. In order to perform a proper situation analysis, this is helpful to set the proper decision-making criteria for any company and achievement of organisational goals becomes possible through strategy adaptation. Finding out the strengths and weaknesses of business has helped to formulate innovations in business through which optional rigidity can be experienced.
Situation analysis is a primary step that in turn becomes helpful to develop marketing strategy and analysis of business health can be acquired through this. According to the view of Teece (2018),situation analysis is an effective strategic amendment for any business as this has helped to forecast all the challenges. In order to find out the challenges, development of risk mitigation strategy can be possible. Marketers have always planned to reduce business risk as this is a key factor of success. Properly done situation analysis is therefore beneficial to acquire an eye-opening view fir analysing whether a business is going properly or not. In case of better going business, it is quite possible to generate value by sustaining in the framework that is already used. On the contrary, the businesses which are suffered negatively, strategies can be developed to make suitable internal workplace and logical reasoning after analysis can be opportunistic for external stability.
Step 1: Analysis of customers
This is important for any business to find out its potential customers to find out their demands as well as the complaints. In order to focus on customer analysis, it becomes opportunistic for marketers to modify the products and services according to their needs. Majority of the times, marketers have idea to their customers previously and updating of matters are necessary (Schoemaker et al. 018). Analysis of customer journey map is effective to do so or Google trends, GDPR-compliant are used to get better idea about customers.
Step 2: Analysis of business product as well as service
Assessment of the own product as well as service can be considered as the second step of situation analysis for determining whether demands of all the consumers are met or not. This has done by monitoring the review of the loyal consumers’ regularly and specific issues or opportunities can be identified through this. In this step, idea about the satisfaction or dissatisfaction level of suppliers as well as distributors can be monitored by using software.
Step 3: Clear understanding about the competition
Progression of situation analysis by detailing the competitors is the third step of situation analysis and this is crucial to find out situation of other brands in same marketplace. In this step, both the strengths and weaknesses of rivals are analysed to forecast the innovations adapted by them (Inoni et al. 2019). This has helped to update own business better and acquiring of good position can be effective due to this.
Step 4: Analysis of external environment of business
External environment analysis is the second last stage of situation analysis and it is related to examine the factors that have affected business growth externally. For example, economic trends of a country are analysed in this stage by which this is possible to measure whether gaining of profit from a particular marketplace is possible or not. This has helped to project specific threats as well as opportunities through which business regulation can be acquired without any error.
Step 5: Mapping of business resources
Resource mapping is the final step of situation analysis for any business as this is crucial to measure the physical and human resources effective for any organisation. In this step, sorting out of the team who are willing to help becomes possible and both the schedule as well as budget of business has been set (Fauzi et al. 2020). This is helpful to assess the success and future relevance of business arena to set out the activities that will carry goals in future.
Situation analysis is based on application of various types of frameworks that can help in both the external and internal market monitoring to forecast betterment in business. In case of customer segment analysis, customer segment map, Google trends, GDPR-complaint are the effective frameworks to assess the demands of the parties. Additionally, PESTLE can be considered as an effective tool to find out political, economic, socio-cultural, technological and environmental factors in detail. All the factors are helpful to measure whether a business is stable in a particular trade environment or not (Leliga et al. 2019). Other than this, SWOT is an effective framework to analyse both the positive and negative traits in business while it is necessary to measure the situation of own products and services. Competitor analysis can be possible by using 5C model as it has helped to sorting out the forces of competition in volatile marketplace (Cheraghalizadeh et al. 2021). By considering all these frameworks, it can be possible to assess the market situation and a clear understanding about business space can be adapted.
“Having a business strategy doesn’t guarantee success; it just reduces the chances of failure”
The above mentioned statement is a number of contradictions regarding whether it is applicable for the business success or not. Usually, strategy is adapted by the organisations to ensure betterment in organisational health and analysis of future success can be possible through this prospect. In order to create the vision and mission for any company, it is possible to provide that the accurate direction and valuation in business proposition can be possible. In the words of McLean et al. (2017), strategy adaptation is beneficial for any company to acquire betterment in practice with setting of clear goals and this has helped to measure the future reliability and validity. However, this is not guaranteed to acquire success through adaptation of business strategy and resolution from future problem can be minimised by its true justification. By considering the suitable strategy in business process, this has helped to work accordingly with the company aim and getting of better results with minimum failure can be possible.
Majority of the global firms have suffered due to change management and change is constant in business process because of easy adaptation in competitive market. However, this is somewhere unaccepted as coping up with the changes is a bit difficult and all the employees are not able to do so. In case of strategic planning, all the management problems are forecasted before the starting of the venture in a particular area and this is a bit helpful to monitor the success criteria and business assurance can be acquired. As per the view of Campbell and Park (2017), objective assurance of management problem can be helpful to understand the valuation in business and this has the key for organisational development. In case of business strategy adaptation, business criteria have been set with the help of template provision and future stability of any organisation is possible through this practice. Controlling and coordination within firm can be effective to enhance communication among the workers and this is opportunistic to reduce any complexities and scope of failure can be mitigated.
Effectiveness of the setting out of goals is necessary for any business as this is somewhere related with the future performance assurance. In case of any company, meeting of the objectives can be opportunistic to secure job role as well as enhancement of performance can be acquired. According to the view of Ul Musawir et al. (2017), alignment of business strategy and vision of the company has to be clear due to high-level of performance and this has helped to monitor the betterment without any scope. In case of the organisations without business strategy, it is a bit difficult to cope up with competitive marketplace and many failures occur for it. On the contrary, organisation that has adapted the suitable strategy is able to analyse all the issues both in the internal and external marketplace. As a result, strategy adaptation is advantageous to reduce the viability of any problem and future stability in business market can be recognised without any major issue.
Financial stability is required in case of any business and this is opportunistic to adapt betterment in the economic structure and financial relevance. As argued by Cooper (2019), economic stability cannot be possible in case of any business without the adaptation of strategy. In case of any organisation, it is always needed to increase performance as this has helped to make a firm more reputed than that of others. High-level productivity is the key to gain more profitability and business commitment has enhanced. In support of this statement, Turner and Endres (2017) pointed out that business strategy application is a process to influence workers to be more engaged within working process by mentioning clear goals. However, the rate of success is undefined and this is required to monitor the feasibility with the help of organisational performance parameter and the competitive force analysis. Overall sustainable performance is helpful to cope up with the challenges and implementation of business process can be possible with high effectiveness with minimum error.
Adaptation of business strategy is based on the long-term success acquirement of any organisation and this is quite beneficial to manage the workforce in a better way. As pointed out by Piva and Rossi-Lamastra (2018), it is necessary for any firm to determine the strategic management approach for setting out suitable decision-making criteria and greater influence through it in business sustainability can be acquired. Other than this, strategy adaptation is required for any business to provide betterment in its flow through resource commitment and forecasting of all the beneficial trait is related to this. As stated by Nosratabadi et al. (2019), business with more flow can able to reduce failures and gaining of both the reputation and profitability becomes possible. Success criteria for any business are depending on the reduction of errors. In order to consider the suitable business strategy, this is possible to reduce the difficulty in performance and the viability of success by fulfilling the needs of customers.
It can be commented after analysis that adaptation of business strategy is not only responsible for any company but also proper nourishment is required in such respect. As per the opinion of Ansoff et al. (2018), management communication is a must need for any organisation and this has helped to mitigate the contradiction between upper level employees and lower level employees. In case of international business management, strategic forecast is helpful to boost up employee morale and betterment in the strategic workforce can be possible without any issue. It is necessary to analyse the business performance rather than the rate of failure and this is the only way to provide assurance in future development. As a result, success and failure is just a coined term and this can be interchangeable based on the innovation and strategy followed by the company. Moreover, by mitigating the scope of failure in the business process, rate of success is increased through the help of strategic advancement.
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