International Business Globalization

Question: Discuss about theInternational Businessfor Globalization. Answer: Introduction Globalization has led to rapid change in the environment and has caused a change in pattern of conducting business. International business pattern are changing due to high level of competition and changing environment. To be more effective and efficient it is necessary to adopt the changes which the world is facing in todays scenario. An organization which enters in the global market with an appropriate strategy is more successful than the other organizations. Various countries has opened there doors to establish commercial relationship with other. Globalization helps in integration of economy and has created ample of opportunities for different companies. Rapid growth in the business has led to emergence of the Asia-Pacific market. The Asian culture has a diversified customs, traditions, and societal standards Asia is land of opportunities which have attracted many industrialists down the ages. It is the best place to conduct the business due to availability of ample of resources an d provides a huge market to the seller. It is due to the Asian culture and diversity that has created various opportunities for the western countries to adopt a strategic tool for making an investment in the industry (Johnson Turner.2004) (Mitchell.2009). Analysis of the Asia-Pacific Market The success of the western countries is due to their approach towards accepting the mode of conducting business in Asia. The region of the Asia-Pacific has a diverse and unique culture which attracts people and company from different places. The business environment in these countries is very different because of the diversity in economic and social parameters. Asians are more attached to their roots and has a serious approach of conducting business whereas Australia has a different approach. It is an accepted truth that the culture plays a crucial role in deciding the pattern of business. Cultural diversity in Asian countries is given more preference rather than any other aspect (Andexer.2008). It is necessary for the international organization to understand the behavior of every individual before commencing business on foreign land. Firstly it is essential for the organization to divide the market as per the availability of resources with them. It is necessary to understand the role of various elements like government, cultural requirements, religious beliefs and the business practices (Armstrong.et al.2014). The Asia-Pacific is divided into various regions which has variety of features. The region is divided into four major parts and each different part exhibits its own cultural background and business environment. East Asia It consists of the countries like China, Japan, and Hong-Kong etc. This region has a developed economy and provides a huge market to the western countries. China is the dominant leader in this region which has influenced the trade practices of this region. This region has similar business culture and environment (Valentin.2014). South-East Asia This part of Asia consists of the part of the main and maritime places. Thailand, Cambodia, Vietnam, Singapore, etc. are the part of the south-east Asia. These countries exhibit a mixture of trade practices which is influenced by India and china. The economy of these countries varies from place to place and shows a combination of business culture. West Asia The west Asian countries includes Iran, Iraq, Syria, Turkey, UAE, Kuwait etc. These countries form the major part of the western Asian countries which exhibit a different business culture from the other part of the Asia. The region is influenced by Islam and has a different set of business practices from the other region. Central Asia It consists of the countries like Tajikistan, Uzbekistan, Afghanistan, Pakistan, etc. The region is influence by the Islamic culture. The central region of the Asia has ample of business opportunities for the foreigners. The region is mostly influenced by the neighboring countries like India, china and Arabian culture which has helped in developing the business practices in this region (Kuil.2008). Overview The cultural diversity in different regions has attracted many western countries to conduct business trade. Asia provides a huge market to the business personnel from different region due to a variety of economic and demographic variance. The cultural atmosphere and variety of economy has created opportunities for traders in different categories. The Asian countries have developed a platform for the western business organization to prosper the availability of resources. The region has created abundant opportunities because of the economic and cultural feasibility. It is due to the favorable atmosphere. The economy of the countries is driven by the government where majority of rule regarding the international business practices are taken by the government. For an Australian enterprise it is essential to adopt a business functions as per the countries environment. The way of operating business in Asian countries is different from the Asian countries. Moreover Australia exhibit an infor mal structure of business whereas the majority of business culture in the Asian countries is formal and systematic (Kaynak Chan.2014). Bulla Dairy Foods The company is one of the major dairy companies of Australia which exports a variety of products like ice cream, yogurt, cottage cheese etc. The company is engaged in exporting the dairy products in China and has recently signed a China-Australia Free trade agreement to export the dairy products in its different parts. Recently Australia has seen a vast demand of the dairy products from the rest of the world. The new trade agreement has created opportunities for both China and Australia. The company has adopted a significant plan by emphasizing on innovation and new technology (Bulla Foods welcomes FTA.2015) (Kaye.2010). Bulla Dairy Foods has expanded its business in China due to ample of growing opportunities. The vast Chinese market has created various opportunities for the dairy companies to export their products (Dairy Australia.2016). China Globalization has created a lot of opportunities at different places of the world to expand their business operations and increase the investments. China is a communist economy where the majority of decisions regarding the business practice are carried by the government. For an Australian enterprise it is essential to study the market before taking an initiative in making an investment. China being the largest populated country has lots of opportunities for the foreign market. It is necessary to understand the various aspect of the local business area before making entering into the market (Chaisse Gugler.2009) (Worm.2008) Pestle Analysis Pestle analysis helps in analyzing the strategies in term of Political, Social, economic, Technological, environmental, legal aspect of strategy implementation. It gives a clear overview before initiating in any business function. Political Factors The government in China has a high degree of influence in the business practices. The Chinese government put various restrictions on the international companies. This is a serious issue which restricts smooth flow of business in the country. There are majority of law which restricts the business enterprise to conduct a smooth trade (Cui Liu.2000) Economic China is a developed economy with a well-developed infrastructure and opportunities. They have the world largest market with a variety of reformative policies. The Chinese economy is mostly upper middle class which are ready to make purchases. Their standard of living is higher and this provides them with a great investment power Social An Australian enterprise may find difficulty in expanding their business in Australia due to restrictive social culture. For conducting business in the local market it is essential to know the local language. There are more social and cultural restrictions which poses a threat on the foreign business person while carrying smooth trade (Dlabay.et al.2016). Technology The country is technologically more advanced when compared with the other countries. They use the best technology and are mostly dependent on the machines to fulfill the objectives. Technology plays a necessary role in the today world. It is seen that the country which has adopted a high-end technology are making development at a faster rate than the other countries (Fletcher Crawford.2013). Environment The rapid industrial development has posed various restrictions on the environmental condition of the country. It was cited in a report that seven out of ten countries in China are highly polluted in the world. This is due to quick industrialization practices. The county is going through various environmental issues which may pose a serious threat on the Australian enterprise while expanding its business in China Legal In order to have foreign investment the Chinese government has made various legal rules and regulations which have helped in removing the trade barriers in the country. The various laws like company la of people republic; income tax law etc. has involved major concern while regularizing the international organization in practicing trade inside the country. Advantages of Diversity Economic, Social and demographic diversity plays an essential role while expanding the business in the various places. An Australian enterprise has to think over various issues while expanding its business in China. Strategy formulation and implementation is essential while expanding business functions in the other countries. A thorough study of the local economy is recommended before entering into the market. China is already self-sufficient in meeting its local needs. The procedure in the country is difficult to accommodate the foreign business personnel. The diversified culture provides opportunities to the foreign business person to expand the business activities under acute pressure. The economic changes are only adoptable if the business enterprise studies the individual and organizational behavior before introducing any change. Difference in Between the Australian and Chinese Market The Chinese market has a vast cultural influence than the Australian market. China is a big market which attracts attention of many industries. The old business routes derive their bases from China. The Asian way of conducting business is different from the Australians. Whereas Australian approach towards business is informal, China follows a formal approach towards business. The Australian enterprise has to realize the opportunities in the external market. China is a self-sufficient economy with a high standard of living. There is a vast difference in the business culture and the organizational structure. New businesses have to realize the growing opportunities in the Chinese market (Chaisse Gugler.2009). Bulla Dairy entered the Chinese market in the year 2010 due to a demand of dairy product. It is recommended to the enterprise to supply the goods keeping in mind the quality standards as the Chinese government follows strict legal policies. There should be a regular supply of dairy product so that any other competitor does not replace the place of Bulla Dairy Product. Further the company should adhere to the rules and guidelines which are essential while enhancing the business on a foreign land (Home.2016). Recommendation China is the largest populated country in the world with a diversified resources and ample of opportunities but it is recommended to study the local market and its requirements before making an investment. It is a developed economy and has sufficient resources to satisfy its needs. It is recommended to read the local market and plan the expansion strategies as per the market. The government policies in China are very rigid it is advised before to read the mandatory rules and guidelines for understanding the local market. Chinese are very close to their hence it is recommended to frame business plans keeping in mind the sentiments. Recommendation to Bulla Dairy Foods Bulla Dairy entered the Chinese market in the year 2010 due to a demand of dairy product. It is recommended to the enterprise to supply the goods keeping in mind the quality standards as the Chinese government follows strict legal policies. There should be a regular supply of dairy product so that any other competitor do not replace the place of Bulla Dairy Product. Further the company should adhered to the rules and guidelines which are essential while enhancing the business on a foreign land. Conclusion Asia-pacific is the land of vast opportunities; moreover it attracts the western countries to establish the trade relationship. The report is about the requirement to meet the demands which are growing in the Chinese market. It is highly recommended to an organization to check its growth and model before entering in a foreign country. Asia-pacific is influenced by culture and the population living in these areas varies from place to place. Bulla dairy product entered the Chinese market in the year 2010 by signing a trade agreement. International business is a growing concept which is necessary to attain significant growth. Global market provides various opportunities for the organization to increase the revenues. Australian companies needs to adopt a strategy while enhancing business opportunities on the foreign land. It is recommended to accept the cultural diversity and to proceed accordingly which will help to attain the objective. The enterprise is recommended to mound its busine ss operations as per the economy of the host country. References Andexer, T.2008. Analysis and Evaluation of Market Entry Modes into the Asia-Pacific Region: Based on the Example of a German SME in the Industrial Goods Business. GRIN Verlag Armstrong, G.et al. 2014.Principles of Marketing. Pearson Australia Bulla Foods welcomes FTA.2015. Online. Retrieved from: https://adf.farmonline.com.au/news/magazine/industry-news/general/bulla-foods-welcomes-fta/2722462.aspx Accessed on: 10 October 2016 Chaisse, J. Gugler, P.2009. Expansion of Trade and FDI in Asia: Strategic and Policy Challenges. Routledge Cui, G. Liu, Q.2000.Regional market segments of China: opportunities and barriers in a big emerging market", Journal of Consumer Marketing, Vol. 17 Iss: 1, pp.55 72 Dairy Australia.2016. Online. Retrieved from: https://www.dairyaustralia.com.au/Markets-and-statistics/Production-and-sales/Production-Summary.aspx Accessed on: 10 October 2016 Dlabay, L.et al.2016. Principles of Business. Cengage Learning Fletcher, R. Crawford, H.2013. International Marketing: An Asia-Pacific Perspective. Pearson Higher Education AU Home.2016.Online.Retrieved from: https://www.bullafoodservice.com.au/products Accessed on: 10 October 2016 Johnson, D. Turner, C.2004. International Business: Themes and Issues in the Modern Global Economy. Routledge Kaye, T.2010. Keeping it in the family pays off: Bulla Dairy Foods. Online. 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