The impact of the macro environment
The beginning of the current era of increased economic globalization marks the creation of Bretton Woods institutions from the end of the Second World War. These institutions have laid the foundations for the International Monetary Fund, the World Bank and the World Trade Organization. These institutions and their contemporary equivalents have sought a way to reduce barriers to international trade in goods, services and capital.
Nevertheless, economic globalization failed to capture the whole picture from the aspect of the impact of the globalization process on the state. Therefore, special attention is paid to the social and political effects of globalization.
Therefore, changes in the external environment trigger changes that have the effect of influencing the company’s performance.
Some of the most significant changes are:
- Accelerated globalization
- IT revolution
- Increasing the economic and political power of GCC, US, China, Europe, India and Russia
- Trade activities such as Australia, Brazil, Canada, Singapore and South Korea
- The dominant share of the service industry (68%) in the total world income (Gross World Product)
- The influence of international institutions such as the WTO and the EU
- Establish new environmental issues such as climate change to politicians and national governments and other world agencies
- Interpreting this macro environment is a continuous impact on international business and management. New opportunities and threats appear everyday, some very sudden!
The prediction of the scope and nature of the change, together with the potential impact on the business future, will in the future be a common topic of board meetings.
Key issues of international business
As seen from the above, the scope of international business is very wide and diverse, and it is therefore important to first look at this topic from a broader perspective, and then look at it from the angle of business management.
The overall view should certainly include Globalization, Comparative Ranking of States, International Trade Factors of Competitiveness and Barriers, International Monetary System.
And finally, very important dynamics of cultures that affect the border business.
In addition, it is very important to pay due attention to internal drivers of international business in accordance with the options for efficient and effective entry into the foreign market.
A strategic perspective should certainly take into account key information for planning international business.
Expanding beyond the boundaries of its own market with PANTHEON – how with outlets?
Let’s get back to the ground. Of these figures, we can rotate in the head. It is clear from all of the above that it is a huge job for companies that intend to expand their business beyond the boundaries of their own state.
The key challenge is how to effectively manage this process? Local offices have their budgets and management, local market specifics, a different level of costs, but also revenue and everything that goes with it.
Local offices need to be managed centrally. Coordinate activities, budgets, costs, expected revenues, etc. while retaining the ability of local offices to develop independently and quickly adapt to new local market conditions.
Quality business software can help in this process. PANTHEON is currently ready for more than 10 markets in the region with the trend of further localization.
This allows companies to centralize the resources of both the mother’s company and all of her daughter companies in any market through the same user interface and the same user experience. With Cloud this is even simpler.
Do you have experience with the expansion beyond your own market boundaries and what did you meet when you opened the office.