International Business Environment Sample Assignment
The report which is discussed below is based upon international business environment. The report consists of some skills which are required in business. In the modern economy, international trade is an enormously relevant aspect. It will only become more integrated into core strategy of the firm as technology continues to progress. Besides that, the backbone of the global economy is the international trade and business environment. Understanding the situation and environment inside which the company needs to work is essential for keeping up a specialty unit successfully at everywhere. Meanwhile, the environmental factors affect for all objectives and purposes of business. The environmental considerations in business are based upon its viewpoint, its region, the expenses of things, the personnel policies as well as the distribution system (Czinkota, Rivoli and Ronkainen, 2010). Accordingly, it is basic to get some answers concerning the diverse parts of the business environment. The distinct parts involve the financial perspective, the socio-social points, the political structure, the technological and the legal aspects and so on.
Background of the company
The company considered here is Macquarie Atlas Roads Group of Australia. Macquarie Atlas Roads Group is a transport company, and it is one of the largest operator and developers of private toll roads in the world. MIG or Macquarie Infrastructure Group had a portfolio of eleven toll roads across seven nations which include Australia (Arthur and Morphy, 2005). The organization is controlled by a team of executives engaged by the Macquarie Group. The management team contains senior executives from the former MIG. So, it provides the continuity of the Directorate, experience along with knowledge. While observing conventional standards of corporate governance and managing risk, the organization aims to deliver long-term profitability as well as shareholder returns. At first, in 1969, the company was established in Sydney with only three people (Browning and Goodwin, 2016). Now, the company took a globalization turn.
Importance of international business and trade
The buying and offering of services and products across over national boundaries is known the international trade. Where transport is of clear significance and so the adjustments in the transportation system opens up new, in advance unfamiliar zones and markets. Irrespective, as noted above, improvements in the transport structure in itself would not speak be thought satisfactory to sustain relocation (Reinsdorf and Slaughter, 2009). Again, it is vital thus that the investment is considered as a remarkable part of a more large package in support of various segments or exercises supporting other economic or social convalescence factors and spatial procedures. Moreover, international trade is significant for the establishment of a present day of today’s people, business world, as creators in various nations attempt to profit from a developed market, instead of being bound to offering inside their specific edges. Irrespective of the way that different customers jump at the chance to buy less overpriced products.
One of the fundamental principles of international trade is that one should buy and services from a nation which has the lowest price and sell his services and products to a country which has the highest cost. International trade is also concerned with the allocation of economic resources among countries (Purcell and Scheyvens, 2015). Such allocation is done in the global markets through international trade under the perception of free trade. Trade business helps to boost development. As a result, poverty is reduced by generating growth using increased commercial investments along with opportunities. It also exports diversification by allowing the developed nations to access new materials and new materials which open up new possibilities in production (Singh, 2010).
Nature of trade blocs
Trade blocs have played an active role in the improvement of international trade. In economic integration, trade blocs differ from region to region such as OPEC, ASEAN, SAARC, EU and so on. It represents various independent economies and brings nations closer. It also helps to eliminate tariffs as well as non-tariff barriers and facilities (Ohlin and Dell, 2012). Consequently, free trades are encouraged. The free transfer of resources helps in optimum utilization of the available resources. Moreover, business blocks have resulted into increase in competition between two organizations of the entire area. The trade bloc formation transfers the technologies across the border. Therefore, productions are improved along with the quality of services and products. Ultimately, it benefits the customers to a greater amount. At last, it plays a significant role in contributing the development, economic growth and industrialization of the whole region.
Impact of globalization
The process by which the national economies became more independent and integrated with one another is popularly known as the globalization. The procedure has been an ongoing process for many centuries now. Macquarie Atlas Roads Group of Australia globalized their business and got positive results. Globalization of Macquarie Atlas Roads Group has led to increasing in competition level (Vaish, 2010). Apart from it, the company needs to improve technology with the growth of globalization. Globalization also leads to rising in investment levels as well as opportunities. Subsequently, it increases immigration rates and thus gives people the chances to grow socially and economically. The increase in foreign investment helps the organizations and native cities develop at a rapid rate. In the recent marketplace, conducting business internationally is much of a defensive play as an aggressive play (Boudreaux, 2008).
Fundamental issues of managers regarding development of emerging markets
The managers face some challenges during the development of their market strategies. The business firms such as Macquarie Atlas Roads Group engage in international trade often use some combination of trade in financial instruments, legal contacts as well as insurances to protect the flow of income from their investments against price or currency swings (Salvioni and Bosetti, 2014). The managers of human resource face some challenges. During a development of business, the role human resource managers are to recruit skilled employees who can handle the new technologies. The directors of companies need to keep up the proper flow of operations in spite of the change an industry has gone through. Apart from it, the manager needs to make plans and strategies to grow the business. At the same time, each and every business needs to be alert to new opportunities. During emerging time, the managers need to looks after the legal and ethical issues of the firm. For legal matters, the managers of a particular company need to obtain proof the target business owns key assets like equipment, patents, copyrights and intellectual properties. Some common issues are listed below:
- Legal and Ethical issues
- Cross-Cultural Issues
- Communication issues
- Sponsor issue
On the other hand, educated customers is another matter, the manager face in today’s generation. It is hard for the organization to sell conventional products at a high price. Individual employee problem can be another conflict in the business. The managers need to handle these situations. The managers need to take the responsibilities to improve the performance of the team members during the development of a project (Kearney, 2012). The team leader must offer a constant feedback as well as nurture cohesiveness. When the manager faces team issues, they must diagnose the problem. After that, they must take immediate corrective actions so that they can avoid serious performance breakdowns. Sponsor is another problem a manager face during emerging time.
Role of managers in cross-cultural and ethical international business
Manager of Macquarie Atlas Roads Group is engaged in cross-cultural as well as ethical issues in international business. When different types people joins an organization, they bring with them beliefs and values (Izraeli, 2016). These beliefs and values are insufficient to help the employee succeed in the company. Moreover, culture is something that shapes the behavior and perception of the individuals. Cross-cultural management consists of managing work teams in ways that consider the diversities in cultures, preferences as well as practices of customers in international and global business context. The managers handle diverse cultures by cross-cultural management. Cross-cultural management is examining the human behavior within the company from a global viewpoint. On the other hand, the managers are responsible for protecting the code of ethics and assisting others to do so as well. The managers hold positions of authority (Zheng, 2010). It makes them accountable for the ethical conduct of those who report them. Aside from that, the behavior of employees is monitored by managers by the expectations of Macquarie Atlas regarding appropriate behavior. The creation of ethical code and implementing them is done by the managers of an organization. These changes and modifications may be in response to a general purpose based on the knowledge of employees.
With the prolonged capacity of all global business all through the latest decades, managers are going up against a developing degree of obligations nowadays. The training of Cross-Cultural Management is imperative for anyone working either all around or in a multicultural space, as it gives the ability to see cultural similarities and differentiations and gives the probability of changing in accordance with particular conditions genuinely. Managers are required to oversee challenges, contact and mixed up presumptions originating from multifaceted differences. Remembering the ultimate objective to satisfy the rising essentials of cutting social management, cultural competency is required to get the best out of a multicultural meeting.
Analysis of skill development through the discussion of case studies and other workshop activities
According to the case study, Macquarie Atlas Roads Group of Australia is the renounced global company who is one of the largest operator and developers of private toll roads in the world. Macquarie Atlas Roads Group of Australia has 11 toll roads across the world, and some of the roads are in Australia. To achieve this global sound position, there is a massive skill development procedure which company has followed. CEO, higher management, human resource department and employees: these are the working chain of Macquarie Atlas Roads Group of Australia Company. Each and every unit has played their role with dedication. Macquarie Atlas Roads Group of Australia often arrange some skill development procedure to motivate the employee and HR department. On the other hand, Macquarie Atlas Roads Group of Australia organize the specific program to enhance the expertise of employee as well as human resource department (Borissov and Hellier, 2013). HR Department is very much aware of employee satisfaction. Macquarie Atlas Roads Group of Australia is one of the companies who pays their employee's bit higher according to their effort. By some motivational program, more senior management, and human resource department comes to know that, how to handle the terrible situation when the working pressure is very high. Along with that, Macquarie Atlas Roads Group of Australia frequently arrange some technological campaign. With the help of this campaign employee, managers and human resource department become aware of the latest technology about their concerned field. This process helps Macquarie Atlas Roads Group of Australia to enhance the revenue. Customer satisfaction is one of the essential criteria of every company, and Macquarie Atlas Roads Group of Australia has maintained this norms correctly. Client feedback of Macquarie Atlas Roads Group of Australia is very optimistic.
The concerned team of Macquarie Atlas Roads Group of Australia is much aware of customer satisfaction. They investigate their developed roads very frequently. Leadership skill of Macquarie Atlas Roads Group of Australia is very practical to maintain their service procedure. Every team leader of the concerned team communicate with their employee and motivate every time. It is one of the optimistic significance of good leadership management (Borissov and Hellier, 2013). Besides that, when the recruitment process is concerned, the human resource department of Macquarie Atlas Roads Group of Australia recruit the best employees depending on their educational and working skill. Nevertheless to say that this can help the Macquarie Atlas Roads Group of Australia to reach their goal and create their market position unyielding rather than their rival construction company. Also, Macquarie Atlas Roads Group of Australia provide some policies to satisfy their employee. The company provides medical insurance for their employee, and some good employees get awarded at the end of the every financial year. These norms motivate the employees very much, and they become much dedicated to their company and this is the beneficial side for Macquarie Atlas Roads Group of Australia. With the help of skills as mentioned above Macquarie Atlas Roads Group of Australia has managed to reach their goals very quickly, and the turnover is
Reflection on development of enhanced communication skills
Effective communication skills can be developed by following some procedure. At first, I need to learn to listen to become an active listener. It is recommended for me to use the techniques of reflection and clarification to confirm what others said. As a result, it avoids confusion. I should also become aware of the emotions of other people. I need to be aware of what’s going on other people’s lives. Empathy is another process by which communications skills can be developed. Empathy is nothing but to see things from the point-of-view of others. I should not get judgmental during communicating with others. For example, I work in a company, and I become judgmental during communicating with others. An adverse effect will fall on me. I will not get help from others during significant situations. I should also learn to encourage others (Harrison and Muhlberg, 2014). Encouragement strengthens communication between two persons. People should be treated equally, and I should also maintain a real smile and attitude. I should also learn to resolve and troubleshoot conflicts and problems in the company if I work in it. Besides that, some communication scenarios can be stressful. However, stress can be a significant barrier to effective communication. It should be reduced during working hours. Some organizations are concerned with the training of employees to improve communication skills. Training is not the final milestone of an individual to develop communication skill. After training, I should practice what I have learned in the training sessions. After all, practice makes a man perfect in any fields (Harrison and Muhlberg, 2014). Corporate communication needs to be determined. Therefore, a mentor is required who will guide me about all the tricks and tips needed during communicating with the internal stakeholders as well as external ones.
The overall report describes the international business of Macquarie Atlas Roads Group. In the first section of the report, an introduction to the background of the company is provided. Next, the importance of international trade and business is described along with the impact of globalization on the selected company. Some key issues and role of managers in ethical and cross-cultural business are also considered. The report also contains the development of skills by secondary research methods. Every organization should make the trade because trade enhances competitiveness by aiding the developed countries in reducing the cost of input and obtaining financial profits by means of investment. In 2008, trade and investment expedited the development of communication and information technology which includes mobile cellular coverage reaching eighty percent of the total world's population. From the research, it is quite clear that sixty-nine percent of the African population are also included in the mobile cellular technology. Macquarie Atlas are severe about their trade, as their trading business injects global competitiveness. Consequently, the domestic business units tend to become very efficient after being exposed to international competition.
Arthur, W. and Morphy, F. (2005). Macquarie atlas of Indigenous Australia. 1st ed. [North Ryde, N.S.W.]: Macquarie Library, Macquarie University.
Borissov, K. and Hellier, J. (2013). Globalization, Skill Accumulation and the Skill Premium. Review of Development Economics, 17(2), pp.220-234.
Boudreaux, D. (2008). Globalization. 1st ed. Westport, Conn.: Greenwood Press.
Browning, S. and Goodwin, I. (2016). Large-scale drivers of Australian east coast cyclones since 1851. Journal of Southern Hemisphere Earth System Science, 66(2), pp.125-151.
Czinkota, M., Rivoli, P. and Ronkainen, I. (2010). International business. 1st ed. Chicago: Dryden Press.
Harrison, E. and Muhlberg, J. (2014). Leadership communication. 1st ed.
Izraeli, D. (2016). Ethical beliefs and behavior among managers: A cross-cultural perspective. Journal of Business Ethics, 7(4), pp.263-271.
Kearney, C. (2012). Emerging markets research: Trends, issues and future directions. Emerging Markets Review, 13(2), pp.159-183.
Ohlin, G. and Dell, S. (2012). Trade Blocs and Common Markets. Political Science Quarterly, 79(4), p.632.
Purcell, G. and Scheyvens, R. (2015). International business mentoring for development: the importance of local context and culture. International Journal of Training and Development, 19(3), pp.211-222.
Reinsdorf, M. and Slaughter, M. (2009). International trade in services and intangibles in the era of globalization. 1st ed. Chicago: University of Chicago Press.
Salvioni, D. and Bosetti, L. (2014). Sustainable Development and Corporate Communication in Global Markets. Symphonya. Emerging Issues in Management, (1).
Singh, S. (2010). Handbook of business practices and growth in emerging markets. 1st ed. Hackensack, NJ: World Scientific.
Vaish, V. (2010). Globalization of language and culture in Asia. 1st ed. London: Continuum.
Zheng, J. (2010). Cross-cultural Study on French and Chinese Managers’ Use of Power Sources. IJBM, 5(5).