Global Business Environment Case Solution
1. Current-global Business Environment
The current business world is comprised of advanced market competition and global trade. Every business is trying to achieve its competitive edge in the market and to strive to be the top most brand in the market. The contemporary business practices are totally different from the last decade where the stereotype practices were done. Now, the advancement is done at every stage and the efficient practices are carried out to achieve the effective results. The global activities of economics and marketing are going towards the advancements. The production process is involved with the international trade because the importing and exporting is at highest peak. (Muhammad, 2010)
However, it is observed that manufacturing economy is highly based on the international trade where the goods and services are exchanged all over the world. The competitive world has made the market concentration so high that every organization strives to get the higher profit in its sector. Today’s business environment is the buyer’s market where the main focus is directed towards buyers’ demand and the companies use advanced managerial approaches to implement innovation in their businesses.
2. Market Processes
Marketing processes of the companies have revolutionized in the current era where the companies have made their processes efficient and have implemented applications to increase their productivity and performance. The main factor is the competitor, which leads to create avital behavior of the company. The other factors involve: external environment where the political, economic, social and legal factors are the most concerning. The companies mold them according their external environment where they work under the legislation of the government.
Apart from that, technological changes have occurred a lot where the modern applications are executed to make the range of products. For example, the manufacturing firms are highly dependent on the technologies where the single product is made by machineries. The production is done on the economies of scale where the main purpose is to minimize the cost and produce the goods in bulk quantities. The cost effectiveness procedure is the same method where the companies buys the raw material in cheaper prices and sell the finished goods at such amount where they could earn higher profit.
The marketing environment is highly emphasized on the customer wants and they analyze the market demand. The efficiency of the firm is evaluated through its industry analyses where it analyzes its efficiency, elasticity and cost by evaluating them in the industry it exists.
3. Market Competitiveness and Concentration Levels
Changing market and its structures have increased the competitiveness and concentration levels. The companies have now reached at the global trade where the competitiveness is rapidly increasing. The manufacturing companies are at the higher peak of market competition. For example: the manufacturing of drugs, machineries and other equipment’s are exported all over the world. As the consumption is increased, the competition is increased with the same proportion in almost every sector.
Along with the competition, the concentration level is also at higher peak. For example the manufacturing of confectioneries is higher, the higher concentration is reached in the sugar industry and its cultivation. The market concentration is the part of the economy where the investment ratio is based on those sectors which are highly demanded and earn more profit……………….
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