New Trends in the Global Business †Free Samples for Student

Question: Discuss about the New Trends In The Global Business Environment. Answer: Introduction The competition for domestic markets is intensifying, companies and organizations are being forced to go global in order to expand their operations and increase their profit margins. Globalization chance presents business leaders with additional opportunities and challenges for a viable business expansion. The International business environment is ever changing, and new aspects are emerging every day, hence forcing business organizations to be up to date in understanding the new complexities and adaptation strategies in a global market. Recent analysis from researchers about international trade has shown a shift in direction for the major drivers in the global environment each single year. Macro and microenvironment dynamics of a business are rapidly changing on a worldwide basis each year (Parker, 2008). The high level of technology is among the newest trends in the environment as it has brought new technicalities in product production, distribution, and consumption. Through technology companies can now produce quality goods and ship them to their customers effectively through new shipment tracking systems that are being developed. The time between distribution processes to the receivable of goods by the customer worldwide has been reduced too. It is also important for businesses to understand there are general expectation and responsibility of producing environmentally friendly products (Al-shamari Masri, 2016). The future of many global corporations dealing with technological goods will depend on how they contro l the environmental impacts of their products. Universal communications systems are steadily improving thus enabling smooth interactions between businesses and their end consumers all over the globe. Customers can now enquire about specifications of a given product and total price directly from their sellers. In recent years there has been an upward trajectory in social technologies as more and more people are connecting and interacting on social media platforms. Communication trends have made organizations integrate social network marketing and promotions strategy through social media interactions. These developments among international companies will force the new corporations to integrate communication systems and techniques so as to connect with their global consumers. A shift of economic power is being experienced worldwide as the developing nations are termed as better investment ground than the already grown economies (Morrison, 2011). European and western economies are seeing stagnated growth thus limiting the growth of economies and opportunities in these countries. Demand for products and traditional services are standard and have stopped growing in the most of the developed countries. Developing countries are being seen as the best avenues for investment as they are in the process of improving living standards of their citizens. This means that many organizations have opportunities to develop and present their products in these developing nations. Supply chains strategies are likely to develop where the goods will be made in the developed countries and distributed to the developing countries due to the availability of a market for ready-made products. Market expansion strategies ideas are spreading among multinational companies; this is done through the development of partnerships and buying of ownership rights of infant enterprises in these countries. Constant innovation is being witnessed all over the world where individuals are innovating products aimed at improving global consumer satisfaction and problem-solving ideas. Traditional products are being enhanced, and new products are being developed so as to meet the international standards of consumer expectations. To remain competitive at an international level companies are promoting and investing in creative and inventive individuals to their organizations. Companies left out in the competition of innovation and rebranding, especially the technology related organizations are likely to be forced out of the international market. Consumer needs, tastes, and preferences are changing rapidly hence making these organization to invest heavily in market research and promote innovative ideas so as to meet the customer's endless list of needs. Many business leaders have accepted the ideas of expansion toward the globalization strategy therefore intensifying competition in the global market. Each year more and more businesses globalize and develop their products beyond their domestic country. Over the last years the western companies were the major international players in the market. However, this has changed as Asian corporations are aggressively entering the market. Production factors such as labor in Asian and African countries are cheaper hence reflecting on the price of products offered. To compete with these cheap products western businesses are being forced to produce more quality goods, innovate aggressively and react to the markets needs faster so as to be in a competitive position (John Allen 2008). Smart machine revolution is growing at a fast rate in production companies all over the world so as to save cost of production and compete at an international level. Robots have replaced major human labor as they are now being used as receptionist, security, and as human assistants. Productions costs such as wages are significantly being cut thus helping these companies realize bigger profit margins every year. The development of this phenomenal is expected to be on the rise all over the globe as a measure of increasing profits or reducing the losses. Efficiency and effectiveness are also likely to be improved as it will help eliminate or reduce human errors. The companies practicing this strategy are however likely to pay into account the importance of human factor such as interaction and judgment attributes, therefore limiting them to the number of artificial intelligence that they have. The ever changing social demographics are posing an enormous challenge to organizations as they try to understand the consumer behavior by their age, sex, and economic class. Worldwide population is growing at a high rate while literacy and intellectual levels are improving thus pointing to a younger, working middle class in the next 10 to 15 years. The changes and development in such demographics are forcing companies to structure themselves into a given specific niche targeting a given demographic group. In a modern global market, companies are obliged to conduct serious studies on consumer behaviors on these groups all over the world. A major percentage of the world is made up of the youth thus proving the reasons why most companies are into youth related products and services (Wong, 2008). Companies involved in service provision for the older group have also experienced substantial growth due to their narrowed niche. Conclusion Business leaders have the responsibility of developing their respective business through expansion or any other product development strategies, among them include globalization of a product and presenting it to potential international consumers. Foreign markets provide new challenges, business opportunities and risks to any organization that wishes to expand its product and services internationally. Learning about new trends new opportunities and laws at international is a fundamental principle that any organization that wants to offer its services to global customers. Demographic changes, technological trends, investment prospects worldwide and innovation developments are among the key things that dictate movements in the international market. References Al-Shammari, M., In Masri, H. (2016). Ethical and social perspectives on global business interaction in emerging markets. Journal of International Business,25(6), 721-741. Czinkota, (2009). Emerging trends, threats, and opportunities in international marketing: What executives need to know. New York: Business Expert Press. John, R., Allen, M. (2008). Global business strategy. Global Business Behavior Journal,43(8), 71-74. Laudicina, P. A. (2005). World out of balance: Navigating global risks to seize competitive advantage. New York: McGraw-Hill. Morrison, J. (2011). Global Business Environment. Palgrave Macmillan. 66(9), 21-41. Parker, B. (2005). Introduction to globalization and business: Relationships and responsibilities. London: SAGE. Wong, S. 2008. Global business trends: Developments and responses. Business Education Behavior,25(6), 721-741.