INTRODUCTION TO GLOBAL BUSINESS STRATEGY
Global business strategy is defined as strategic guidance for organization to meet the requirements of international business. In addition to that global business strategy covers two areas such as multinational and international strategy to sustain the market position and meet the organizational objectives. Report will review the techniques to analyze the environment and assessment of their suitability and micro and macro environment of UNICEF that works for children and mothers for developing countries. This organization is a non-profit making council which is established in 1946 and known as United Nations Children Fund. Organization works for development of children who are not able to get food, house and education to manage their life. Report will analyze the impact of International environment on the organization (About UNICEF, 2015). In the next part report will perform assessment of benefits, opportunities and challenges of globalization for operations of UNICEF. In the end, report will produce the extent of globalization and structure of organization operating internationally.
ACTIVITY 1 ANALYSIS OF INTERNATIONAL BUSINESS ENVIRONMENT OF UNICEF
A.) Review of the techniques to analysis of environment and suitability
Environment of an organization consists of business partners and associated councils that work for foundation to meet their objectives and goals in an effective manner. For the organization UNICEF is working globally for children welfare and developing new policies to satisfy the needs of stakeholders. Through analyzing environment top management of organization will able to identify the issues that affects the business process and factors that influences the course of business. Following are the key techniques that can be used by organization to review the global environment and suitability:
Static situation: For the effective analysis of suitability and global environment of organization that performing non-profit making business that technique will be useful. According to that technique, management can evaluate the impact of policies and implementation of plan by considering the facts and finding of overall operations perform by UNICEF for children well fare (Althonayan and Sharif, 2010). In that, management will review the financial, operation and human resources factors as well as their contribution to develop the business. In this technique, top management of organization will able to understand the needs of development and the weak areas that influences the operation of UNICEF in global prescriptive.
Dynamic situations: According to that technique, for evaluating the process of function UNICEF is performing for the children and mother needs support and motivation for get the life-hood. Thorough this technique, manager can analysis the factors like structure, process and implementation of plan to achieve the goals in an effective and efficient manner. In addition to that by reviewing past performance and data collected by the team will give certain idea about the environmental conditions of UNICEF and its associate organization that is working in non-profit business (Augier and Teece, 2009). In dynamic approach organization can also evaluate the performance of individual and groups that works for organization as well as contribute in development of sustainable plan that is suitable for their structure in global prospective. A point of saturation is reached with the present technology. No further program can be made by using present technology. Analysis of business situations will be helpful for organization to reach out the actual problem that is influencing the operation of organization in different part of the world.
B.) Macro and Micro environmental analysis of UNCIEF
For the macro environmental analysis, PESTLE factors are used for evaluating the issues and positive elements for the business operations performed by UNICEF to achieve the goals and objectives. UNICEF is working globally for their non-profit business process and following are the macro environmental factors that will help management to analyze the conditions.
Macro environmental analysis:
Political factors: UNICEF is operating their business at international level as it is offering services for children and their betterment. According to analysis of political factors, management of UNICEF is facing issues in implementing national government policies in which declaration of funds planning and utilization of resources influencing their operation without approval from the higher authority organization cannot use the resources of particular country (Davis, 2012).
Economical factors: This factor has greater impact on the functions as well as process of managing funds. In that section, financial conditions of nations and global economy is influencing the planning and raising funds to execute the process. UNICEF is raising funds from the United Nations, as they provide financial support to perform the charity for children (Ebaid, 2011). However organization is having sufficient fund for implementing the plan but fluctuations in the world economy hamper the operations. In that condition role of developed country is critical, as they have to raise the amount of donations for UNICEF to maintain the services in other parts of world.
Social factors: This is one area where organization is performing well, by understanding the values and culture of nations and local areas (Fernando, 2011). The staff members of organization have good understanding of social needs and perception of service users. UNICEF is operating their function in Africa, Kenya, Zimbabwe and other backward countries that also need support to overcome the issues about children and people (Hoffman and Woody, 2013). In addition to that language and culture is influencing the work of UNICEF.
Technology: According to macro analysis of UNICEF, it is consider that organization is using technological tools very effectively to manage the resources. In addition to that by using social media, top management of organization is encouraging people to contribute in Nobel cause (Freeman, 2010). Use of technology is helping organization to identify the locations and supply services with immediate effect.
Legal factors: UNICEF is a global organization which is developed by the United Nations to improve the level of living for needful children and poor countries. In the legal considerations from all the supportive nations has provided some aid to UNICEF to perform their operations effectively and in efficient manner (Holbeche, 2013). Organization is also creating events and function according to law and legal terms that is helping to meet the objectives more effective manners.
Environmental factors: UNICEF is not performing any act that is harming environmental conditions and influencing their work. However conditions in favor of organization to utilize the opportunity but use for natural resources is the one factors that goes against UNICEF, in which organization is utilizing land, water and other resources at low cost which is influencing decision of other business organization that paying are more than UNICEF (Gospodarevskaya and Churilov, 2011).
Micro environment analysis:
Media: A positive media attention is essential for the organization like UNICEF which is offering services for poor countries and people all around the globe (Kirchgeorg and et.al. 2011). By using the term globalization, top management of organization has created awareness in increasing the support of people by the help of media. According to analysis it is considered that media tools like social sites, digital techniques and internet broadcasting has helped organization to get attention of people all around.
Shareholders: As organization need investors to grow the business and raise funds for maintaining operations. (Koch and Nieuwenhuizen, 2007) In that introduction of public shareholders bring new pressure for organization for return. In spite of that organization is not having such kind of pressure as they collecting funds for Nobel cause as it is a non-profit making organization.
Suppliers: These are the key people who provide the necessary support and raw material to carry out the business and operational activities of UNICEF (Koch and Nieuwenhuizen, 2007). This organization is having different suppliers for different nations according to requirements. As top management is having good relationship with all suppliers which is helping them to meet the objectives in more effective manners.
C.) Impact of international business environment on UNICEF
For the organization UNICEF is working globally for children welfare and is developing new policies to satisfy the needs of stakeholders. In that management will review the financial, operation and human resources factors as well as their contribution to develop the business. In the current scenario, conditions of international business environment are strong as GDP of all develop and developing nations is on good state (Ebaid, 2011). The national government of nations is looking to uplift the conditions of poor children by offering them with free education, food and household facilities. In that the economical and political conditions has both positive and negative impact on their operation and planning which is effectively monitored by top management (Kourdi, 2010). In addition to that financial conditions of nations and global economy is having greater impact on the planning and raising funds to execute the process according to conditions and legal considerations. Organization is raising funds from the United Nations, as they provide financial support to perform the charity for children to improve their education, food and household situations. However organization is having sufficient fund for implementing the plan but dramatic turnaround in the world economy hampers the operations. In the CSR events and activities role of economical changes in tax and currency exchange rate creates barriers which are the main cause for conflicts (Linn, 2008).
In addition to that, organization is also developing events and function according to law and legal terms proposed by the national government which is helping to meet the objectives more in an effective manner. To perform operation in countries UNICEF needs to take permission from the political parties, without approval of higher authority organization cannot use the resources of particular country (Preble, 2005). At international level political issues like utilization of resources, determination of limits and involvement of local bodies for development of them is also an important factor which influences works of UNICEF.
D.) Assessment of benefits, opportunities and challenges of globalization
Globalization is the process of international integration that arise from the inter exchange of products, ideas and culture. For organization like UNICEF globalization has helped to identify the location where they need to work to fulfill their goals which is basically improving the life style of poor people and countries (MANAGEMENT LEVELS. 2015). Globalization has influenced from transportation, telecommunication and internet services that reduces the cost and interdependence of countries. Through the support of globalization UNICEF is expanding the limits of operations and finding new locations to expand the limits of operation and offer services to the needy people all around the globe. In other words globalization is the process by which non-profit making organizations like UNICEF is developing international influence or is starting operating on an international scale.
From the analysis of global aspects, UNICEF has gain many opportunities for serving the people as it is improving the numbers of associate nations that are willing to join the operations that UNICEF is performing (Richardson, 2008). In the opportunities, organization is having good numbers of suppliers and investors that will help organization to perform the activities to provide free education and food to children, as UNICEF is offering free food in schools which is also persuading children to join school to improve their knowledge as well as improve the standard of living. By following the trends of globalization, UNICEF can built opportunities by collecting the information about the nation and particular area that need to be develop according to requirement. In addition to that by globalization organization has also improved numbers of supplier and investors which is good for them.
On the account of benefits of globalization, UNICEF is a good example of it as organization has improve brand value as well as strategic partners for increasing quality of services and raising the funds for activities (Gospodarevskaya and Churilov, 2011). The major benefit of globalization is that it is supporting business organization, in which companies are offering some amount of profits as the contribution for maintaining the flow of campaign that stated by UNICEF for children. In addition to that, by doing the charity with UNICEF, business organization is also encouraging their brand image in international market. In spite of that, globalization has also created challenges such as consideration of values and belief for developing effective plan and global strategy to maintain biasness with all working location and offer equal facilities to all countries. In addition to that in the legal considerations of supportive nations has provided some aid to UNICEF to perform their operations effectively and in efficient manner. Organization is also creating events and function according to law and legal terms that helps to meet the objectives in more effective manner (Camacho, 2012). Consideration and implementation of lawful activities according to nation is the biggest challenge for UNICEF.
A.) Extent of globalization on UNICEF
Globalization is beneficial for UNICEF to develop and create awareness about the children welfare which encourage people to contribute in raising the fund and support. By using the term globalization, top management of organization has created awareness in increasing the support of people by the help of media. Organization has adopted many changes to meet the international standard for social work and involved more and more people to support their planning that are helping the poor children and people. By the analysis, it is considered that media tools like social sites, digital techniques and internet broadcasting is helping organization to get attention of people all the around to contribute (Fernando, 2011). This is considered as a greater impact of globalization for UNICEF. In that, the economical and political conditions have both positive and negative impact on their operation and planning which effectively is monitored by top management. In addition to that financial conditions of nations and global economy is having greater impact on the planning and raising funds to develop more effective and meaningful activities which improve the social welfare message as well as improve the level of education and availability of food. In that process of globalization, management will review the financial, operation and human resources factors as well as their contribution to develop the business. In this technique, top management of organization will able to understand the needs of development and weak areas that influence the operation of UNICEF in global prescriptive.
B.) Structure of different organization for international market
In the international market many big brand are operating their business, in which their market and business structure is playing key part to sustain in the market position. UNICEF is non-profit making organization which has simple structure of managing work and performing the activities. In spite of that, profit making organization like Google is following monopoly market structure for offering services and determining price in the global market. Organization is using that strategy for managing resources and human resources for making more and more profit (Rosen, 2008). This kind of market structure is useful for making self decisions and determining the pricing policy that is highly influenced by the management of Google. For that, top management of organization analyzes the market conditions and makes changes in price. The top management of Google is analyzing the market conditions according to international market and developing effective policies to gain the profit. In that process, they follow the preference of their customers and suppliers. Google makes their own decisions as per the cost of function and demand. The kind of structure organization is following is helping to improve market share and size.
ACTIVITY 3 CRITICAL EVALUATION FOR INTERNATIONAL OPERATIONS OF UNICEF
This organization is non-profit making council which is established in 1946 and known as United Nations Children Fund. Organization works for development of children who are not able to get food, house and education to manage their life. UNICEF is operating their activities all around the globe for poor countries that need financial help to improve living standard of people. However UNICEF is offering quality services and facilities to all associated countries but the major issues which hampers their work is language, currency, strategic disputes and conflicts between nation as well as local bodies for allocation for resources. The national government of different nations is also planning to rise the conditions of poor children by providing them free education, food and household facilities. In that the economical and political conditions has both positive and negative impact on their operation and planning which effectively monitoring by top management. In spite of that, doing the charity with UNICEF, business organization is also encouraging their brand image in the international market. In spite of that globalization has also created challenges such as consideration of values and belief for developing effective plan and global strategy to maintain biasness with all working location and even it offer equal facilities to all countries.
Now it is the responsibility of managers and departments to analyze the opportunities according to international trends, economical impact and contribution of stakeholder for developing new plan and activities for children welfare. However UNICEF is performing well in their field and they still need improvement in determining services for poor nation equally.
From the above report it is considered that UNICEF is doing exceptional work for the poor children and nations that facing financial and resources issues for maintaining standard in education and food facilities. In that report, term global strategy has also been explained with context to UNICEF. Report has discussed the techniques for environmental analysis of UNICEF and performed macro and micro analysis of factors that influences the operations of organization in international level to improve the contribution of associated nation to provide them significant support for child welfare. In the next part, report has explained benefits, opportunities and challenges that influencing the activities of organization for international comparative. In the end, report has described the business structure of Google that also offers services in international market. Report has also critically evaluated operations of UNICEF according to international business conditions.
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