UNIT 5 - international businesses
Whole Learning Aim Assignments
Learning aim A: Explore the international context for business
operations
Introduction:
In this section of the assignment, I will provide a comprehensive overview of international
business and crucial relationships. International businesses are those who transport goods or
services throughout the world, trade abroad, and provide their products and services to the
rest of the world in order to increase their profitability and influence as well as establish
broader brand recognition and awareness of their organisation. International trade has a big
impact on the domestic economy. It occurs in an internationally competitive market, where
both small and major enterprises are participating.
Understanding the Global business environment
The global marketplace is a platform where all consumers or potential customers for a product
or service from all over the world gather together and purchase products and services from
either a large or small multinational firm. Today, the success of these firms is determined by
how corporate executives respond to various worldwide situations affecting business
operations. The global environment is crucial to the functioning of businesses. The global
environment affects firms in their everyday interactions, yet they are typically outside
management's control and continually alter. Enterprises that meet the needs of global
environmental variables obtain greater performance, enhanced morale hence resulting in
higher job satisfaction, and, ultimately, a higher profit margin for individuals and their
businesses. Samsung is an example of an enterprise that has been impacted by the global
market. The firm's situation has deteriorated as a result of the ongoing trade war between the
United States and China. Samsung faces import restrictions on some essential production items,
as well as restrictions on selling their products in both domestic and international markets. For
example, US restrictions on Huawei, a major buyer of Samsung memory chips, have reduced
demand for the company's chips and forced it to cut prices, primarily due to trade disputes
between the US and China. Samsung. In addition, geopolitical difficulties and a technological
downturn have weighed heavily on the company. The trade war between the United States
(US) and China has shook the global tech supply chain and pushed up the price of memory chips
used in phones and data centres.
,Pestle AND POLICIES WITH THE GLOBAL BUSINESS MARKET (apple)
Apple is a multibillion-dollar corporation that focuses on devices, software, and internet
services. Apple is the world's most valuable firm, the fourth-largest personal computer provider
by unit sales, and the second-largest mobile phone manufacturer as of January 2021. Along
with Alphabet, Amazon, Meta, and Microsoft, it is one of the Big Five American information
technology corporations. Steve Jobs, Steve Wozniak, and Ronald Wayne created Apple
Computer Company on April 1, 1976, to build and sell Wozniak's Apple I personal computer.
Jobs and Wozniak formed Apple Computer, Inc. in 1977, and the Apple II, the company's next
computer, became a bestseller. In 1980, Apple went public, resulting in immediate financial
success.
Political factors:
Apple is primarily reliant on China's lower-cost manufacturing. Manufacturing in China could be
disrupted, or expenses raised as a result of social and political instability. There have also been
suggestions to impose import restrictions on Chinese goods in the US in order to stimulate
American manufacturing. Moreover, Apple's reliance on Chinese production and markets puts
it vulnerable to political turmoil in the country, and the company might become a target of
rising nationalism and anti-Americanism in China, reducing its market share. Apple also faces
political problems in America; Apple is one of a number of American technology businesses
with significant cash reserves. On June 30, 2015, it had $34.7 billion in the bank. In the United
States, where income disparity has become a major political problem, this is prompting
proposals for more corporate taxation. Bruit has also made changes to trade.
Economic Factors:
Economic growth, inflation, deflation, unemployment rate, and wage policies are some of the
important economic elements that affect Apple's company performance and conditions.
Economic stability in industrialised countries, rapid economic growth in developing countries,
and rising disposable income among target consumers are all major chances for Apple's
expansion. However, while examining all economic options, it is critical to keep in mind all of
the worldwide market's competitive pressures. These external strategic drivers represent the
company's and its competitors' potential for growth, particularly huge international
corporations like Samsung and Huawei. Because Apple products are high-end, the target
demographic is mostly high-end customers. As a result of its premium pricing approach, Apple
is having difficulty breaking into the Asian market, which has stronger growth rates and greater
prospects for a tech company like Apple. A strong US dollar might raise exchange rates, making
, it more expensive for Apple to trade in many of the world's most important markets, such as
Europe and China. The global economy has also suffered as a result of the pandemic, and there
have been job losses all around the world. Given Apple's high price point, this would always be
a major consideration.
Social factors:
Social external influences influence consumer behaviour and expectations. Apple's business is
affected by social or socio-cultural developments, this will address some of those aspects.
There are a few socio-cultural trends that are crucial to Apple's success. Starting with the
increasing use of mobile devices, which is a huge opportunity for Apple to expand income and
sales. In this day and age, the world would be unimaginable without gadgets, mobile devices,
smartphones, and tablets, therefore Apple has established its dominance in foreign
marketplaces. Now, the next trend affecting the socio-cultural element is the increasing need
for digital systems; this is also an opportunity for Apple, as rising demand leads to more sales.
Because the average person's purchasing power has increased around the world, Apple's luxury
product sales have increased as well. Apple products are more of a status symbol in many
civilisations; therefore, sales have risen as a result of this mentality. Despite the numerous
prospects, Apple poses a social threat of opposition to its business operations. Anti-Apple
sentiments are surfacing as a result of developing obstacles in business disciplines, such as
some external repair services. Moral concerns regarding Apple's assembling in China may limit
the appeal of its products to socially conscious purchasers.
Technological factors:
Current technologies and technical breakthroughs are evaluated to identify company
opportunities and dangers. One of the most important causes is the growing technological
integration in business, which gives Apple a growth opportunity by allowing it to extend its
technology services to a wider range of customers and institutions. However, because
technology has such a limited lifespan, Apple must upgrade its products more frequently in
order to keep up with its competition. Apple's competitors provide several high-value
technology items at a low price, affecting the company's brand image and, subsequently, its
financial performance. Lenovo, for example, has maintained its position in the PC market while
Apple has lost it. It is a result of these competitors' low-cost, innovatively propelled
merchandise. Another key opportunity for Apple is the growing need for cloud computing. By
establishing an extended cloud framework, the company might gain a competitive advantage in
providing cloud computing services. Apple invests much in product research and development,
and as a result, it consistently ranks first in the category of new innovative goods.
