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Competing in a Global Context competing globally (Global Operations …
Competing in a Global Context
Analysis of the external environment
Analysis of external factors impacting business
Global Competition
Absolute/ relative comparative advantage
Countries specialising in product or service to provide advantage, i.e. produce cheaper
Diamond model
Provides insight into competitiveness of a country
Global Operations
Supply chain
Foreign exchange market
Exchange rate is determined
Demand curve
Fluctuations in exchange rate
Dependant on price elasticity
Demand changes for currency
Demand changes for foreign products
Outsourcing / offshoring
Decreased manufacturing and labour costs
Increased competition and innovation
Ethical considerations
Environmental impact of operations
Working conditions
Debt bondage - modern day slavery
Tax evasion
Buying power of MNC's
Governmental regulations
Employee Relations
Increased pool of labour
Cheap labour
Access to skilled labour globally
Code of conducts for better working conditions in developing countries
Cultural differences
Working practises
Child labour
Poor level of health and safety
Poor treatment of workers
International Marketing
Convergence
Adoption of best international practices by all businesses.
Divergence
Adoption of local practices by the business.
Crossvergence
Innovation of adaptive working practices dependant on local needs.
Governmental influence
Distributing subsidies
Level of education for population
Skill level of workforce
Tax conditions
Level of infrastructure
Branding
Brand image
Technological developments i.e social media platforms
Increased consumer power over brand reputation
Consumer perspective
Brand identity
Organisation perspective
