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Business environment mean all internal as well as external element it shows how company function like operations, finance, human resources, competitors, suppliers, vendors etc. are affect performance positively as well as negatively. It is a management responsibilities to manage all these negative effect of enterprise environment on business activities in an effective manner. Some environmental factors are social cultural, technological, economical, political, employees, management and many more. In this assignment Unilever firm are selected in order to know impact of internal as well as external elements on organisation performance. It is clients goods organisation it includes foods, personal care product, beverages, cleaning agents and many more. Unilever was established in the year of 1930 and run their business activities at international level (Al-Swidi and Al-Hosam, 2012). The total number of employees which are work here is 169000 in the year of 2017. In this report covers strength, weaknesses of internal external factors and relationship among firm function. It also covers positive, negative impact of these element on institution operations and many more.
This way opens the opportunity for an organization to expand its business at wide level and recognition world - wide. There are many factors which drive or influence a firm towards introduce globalization this are:-
Impact of social media : Unilever can use social media in promoting their products to ample number of customers, as social is very huge network and is used by largely number of people in world. Therefore, the impact of social media over globalisation is very much positive.
Impact of connecting to global community : This can also play very effective role over globalisation, as this will help Unilever in contracting with organisations which are very much popular and successful in that nation in which they want to expand.
Impact of digitised design : This will help Unilever in transforming their information from manual to digital. Therefore, the impact of this over organisations is very positive.
Critically examine the factors of globalization as benefits and challenges:-
The benefits of globalization examines in two perspectives for company and for customer and social welfare. These are:-
Challenges and disadvantage of globalization for company is:-
A globally operated firm or MNC like Unilever an UK based company is currently operating in more than 190 countries in four main divisions –Foods, refreshment, home care and personal care. This all products wide variety of range offered to customer as per their preference and choices. Company also modifies their strategic policy according country to country basis. The top management team of company faces a lot of problems while formulating policy and implement it worldwide these are following:-
There are too many advantage of globalization but a company who want to go local to global faces a lot of challenges due to formulate and implement their strategy in large. Today is world of full uncertainty and complexity so the firm management has to be proactive about all opportunities and threats and use their strengths in such manner which minimize the impact of firms weakness to take competitive advantages.
The term globalization considers the whole world as one market, all economies of nation are open for business activities and no barriers imposed by the government respect to trade. when an organization become global its impact in its each factor like structure, policy, norms, vision, mission, production capacity, management team, functions and leadership also (Gharajedaghi, 2011). Unilever is global company which operates its function approximate 190 countries world extensively which headquarter in London (United kingdom) from there operate at large level.
Pest analysis of Unilever are as follows:
So there is dynamic change of environment and rivalry among the firms to make business leader in market and globalization is best way to achieve this goal its converts whole world as one market which break all the barriers respect to business in another country. But an MNC start working in new country then its challenge able to understand the behaviour patterns, lifestyle of the customer what they exactly want and also working behaviour of employee. The MNC operation affected by Government policy, rules and regulation, technology advancement etc. The firm has to analyse its internal and external factors through (SWOT and PESTEL analysis ) to use company opportunities and strengths to take advantage and minimize the effect of weakness and threats for firm to gain competitive advantage in present business scenario so the company has to adapt change continuously basis in their policies, structure and their operations (Li and et. al., 2011).
Ethics are the set of moral behaviours that ensures the act of one person does not affect the working of other person. In business the business ethics are the set of rules and regulation which ensures the transparent working of business that does not violate the social standards. In business there are various rule and policy governed in the national boundary for the transparent and legal working of business. These policies are the symbols of ethical working. In international trade also there are various organisation and policy that creates standard for the ethical process of business operations. The ethical business operation stands for the quality product, environment conservation and social welfare. This includes the practices such prohibition of child labour, ISO certified product quality, employer act and trade unions, taxes and corporate social responsibilities. This ensures that firm is not employing child labour, products of the company are ISO certified, and employees are hired in accordance with the employee act of the nation, company is following tax policy of the country and also contributing in the social welfare of the nation economy (López-Gamero, Molina-Azorín and Claver-Cortés, 2011). The term sustainable globalisation is in much talk because of if capabilities for analysing financial decisions. Sustainable means long term stable growth which brings the equal result to every section of world. Globalisation means distribution of goods and services across the world. It empowers business houses to run the operation in all over the world.
It eliminates the national boundaries hence business grows multiple times as market size increases. In globalisation the business houses are free to run the operation in any country. Liberalisation made it easy to do business anywhere in the world. The policy and rules of countries has become much easy and flexible hence more and more companies are doing business across the world. It gives many benefits to company as low cost advantage and exports benefits. In many countries labour are very expensive. With producing goods at low pay labour countries the companies get advantage of low cost hence more profit to the firm. Sustainable globalisation means that the each portion of the world should get benefits from globalisation. With this term only few countries like. U.S. and U.K. has registered remarkable growth. Whereas continent like Africa has noticed diverse effect. Developing countries like B.R.I.C.S nations has noticed few improvements in the GDP. Here the business ethics and sustainable globalisation addresses the issue of imbalanced growth in the world. The ethics state here that business houses should work ethically and for contribute for the stable long term growth of the nation and the world (Meiners, Ringleb and Edwards, 2014).
In the 21st century the market is very competitive. Buyers have become wise and smart. They choose the product which has good quality as well as good market reputation. By following the fundamentals of business ethics business houses earn respect and global recognition. This gives competitive advantage to the firm. This gives uniformity to the different function of the organisation. Business operation runs as per the ethics which bring transparency in the overall organisation. It creates trust on the company hence business receives great esteem and appreciation. Unilever believes in sustainable growth and it is a vision of the company to achieve the same (Onetti, Zucchella, Jones, and McDougall-Covin, 2012). Unilever A big brand name for consumer products follows the following 3 goals for the smooth functioning of business on ground of morality at global space:-
If the organisation operate its business at international level, the functions of the company will work properly so that the company work ethically and sustain in global environment. For example, HR department will help in designing strategies and rules so that the firm can suffer internationally. Cause of ethical and sustainable globalization, R&D department properly conduct research and identifying the consumers needs son that they can provide products according their needs and gain competitive advantages. Marketing department will use different ways and channels of promotion so that they can provide information about it products and services to its customers. For example, HR department develop privacy policies to provide protection to its customers and their information.
Decision is an action for most possible outcome of future. Decision making is a process of selecting best course of action from many alternatives. This process includes selecting, evaluating and analysing the alternatives. In global business scenario it is very important for the organisation to make good decision which gives them long term benefits. There are various ways of decision making. Few of them are stated below:-
In this era of liberalisation and globalisation it has become very important for the organisation to break the national boundaries and enter into international market for more market share and profit. There are various ways to enter into international market which helps in enter the market but it is not that much easy because each method has its merits and demerits. Stated below the few methods with its merits and demerits:
Barriers in ways to industrialisation
Globalisation is key term for the business in this 21st century. Even local suppliers also face the global competition. This project addressed the issues with the globalisation and its impact on business and society. This project has also led the impact on managerial skills of globalisation. The challenges and benefits of globalisation have given full attention in this project. In the end it can be concluded that the business needs to go global for it growth and profit but is also need to keep in the mind the value of right and wrong in the business. Businesses are run for profit but in order to earn profit it also needs to take care of society from which it is getting the benefits. Business needs to deliver this profit to society irrespective of the boundary of the nation.
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