Advantages And Disadvantages Of A Global Firm

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A global firm operates in more than one country and captures the know-how, production, supply chain, marketing strategies and financial advantages that are not available to purely domestic competitors. Planning, operating, and coordinating activities are done on a world-wide basis by a global firm. Cultural, economic, administrative and geographic arbitrage can create potential advantages. Business environment is sum of all forces which act and influence a business. There are internal environmental factors and external environmental factors which can influence each other and work together to affect a business. The business environment is never static and never predictable. The entire organisation whether they are commercial, charities, government…show more content…
Post identification of critical trends and potential events the environmental factors are monitored. It can be defined as 'the process of repetitive observing for defined purposes, of one or more elements or indicators of the environment according to pre-arranged schedules in time, and using methodologies for comparision, for environmental sensing and collection of data'. Through this process, data collected about the environmental factors and characteristics are recorded, analysed and interpreted. Finally inference is drawn out of the…show more content…
(Kotler, Koshi, Jha; 2012) Market Attractiveness- By evaluating the market potential in terms of revenues, attractiveness of the market could be assessed. The revenue and profit potential in terms of revenues that can be judged on the basis of the level of initial investment required in establishing the operations, the gestation period, the industry structure, and the number and degree of obstacles that the company must face besides competition that is the macro environmental factors. Capability of the company If and only if the company is capable of expanding its branches abroad in terms of both resources and capital, it will step into global market. The company will analyse its own capabilities, core competencies, effect of competitors in foreign market and availability of substitutes in order to launch itself in the global
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