IBM ASSIGNMENT

QUESTION A
Advantages of competitive environment to the organization
Advantages of technological environment to the organization
Increased reach

Using information technology, a marketer can reach an enormous number of people with just the
click of a button. Networked technologies give millions of people instant access to each other,
and this fact is being exploited ever more actively by marketers trying to get their products into
the public eye.

Increased productivity & efficiency

Computers connected with high speed internet have allowed the workforce and authorities to
collaborate and discuss business related things more efficiently than ever. In this way, they can
better handle various business related tasks and jobs even from distances and without travelling
for the workplace. Technology has changes the way companies and organizations work to chase
their business objectives and goals. They can accomplish assigned tasks and duties rapidly by
using different devices, machines and equipment to increase the productivity & efficiency at
workplace.

It leads to effective communication

In this era of mobile devices, workers and employees are connected with each other any time to
converse business related issues in real time to get things on track without waiting for hours.
Virtual meetings are increasingly implemented by businesses and companies to keep the business
operations running even if a senior manager is out of town or country due to some reasons.
Companies can also provide competent customer services to build trust and it is only possible
with help of the business technology.

Reduced business costs

Increase in productivity due to implementation of technology in business is the best way to

reduce business costs by having a few workers at workplace. Technological advances are playing
a vital role in reducing business costs and expenses in many ways. For instance, latest
communication solutions are also reducing the business travel costs as there will be no need to
meet an oversees client face to face after travelling hundreds of miles just because of video
calling apps and software.

Increased mobility

Using handheld devices, it is very easy to access business software and database to add or obtain
details, employees can use their personal devices to complete several business related tasks even
from their homes if they are authorized by the higher authorities to do so. Most of companies and
organizations are also using their own networks to make increase the business mobility as well as
to let their employees work from home or any other location without visiting workplaces.
Increased speed and flexibility

Technology allows advertisers to respond quickly to changes in the marketplace. Different

markets can be targeted with differently themed promotions using digital technology, without the
prohibitive costs associated with traditional print technologies.

QUESTION B
Contemporary issues in international business

International accounting

Of the main legal areas to consider when it comes to doing international business, tax
compliance is perhaps the most crucial. Different tax systems, rates, and compliance
requirements can make the accounting function of a multinational organization significantly
challenging. Accounting strategy is key to maximizing revenue, and the location where your
business is registered can impact your tax liability. Mitigating the risk of multiple layers of
taxation makes good business sense for any organization trading abroad.

Cost calculation and global pricing strategy

Setting the price for your products and services can present challenges when doing business
overseas and should be another major consideration of your strategy. You must consider costs to
remain competitive, while still ensuring profit. Pricing can also come down to how you choose to
position your brand.

Lack of universal payment methods

The proliferation of international e-commerce websites has made selling goods overseas easier
and more affordable for businesses and consumers. However, payment methods that are
commonly accepted in your home market might be unavailable abroad. Determining acceptable
payment methods and ensuring secure processing must be a central consideration for businesses
who seeks to trade internationally.

Foreign laws and regulations

Along with getting your company structure in place, gaining a comprehensive understanding of
the local laws and regulations governing your target markets is key. From tax implications
through to trading laws, navigating legal requirements is a central function for any successful
international business. Eligibility to trade is a significant consideration, as are potential tariffs
and the legal costs associated with entering new markets.

Communication difficulties and cultural differences

Good communication is at the heart of effective international business strategy. However,

communicating across cultures can be a very real challenge. Effective communication with
colleagues, clients, and customers abroad is essential for success in international business Being
aware of acceptable business etiquette abroad, and how things like religious and cultural
traditions can influence this, will help you to better navigate potential communication problems
in international business

Political risks

An obvious risk for international business is political uncertainty and instability. Countries and
emerging markets that may offer considerable opportunities for expanding global businesses may
also pose challenges, which more established markets do not. Before considering expansion into
a new or unknown market, a risk assessment of the economic and political landscape is critical.

Worldwide environmental issues

As the environmental risks and effects of climate change are becoming better understood,
sustainability is high on the agenda of many major global corporations. If you are considering
expanding your business overseas, it’s important to be aware of the country-specific
environmental regulations and issues associated with your industry. Some key considerations
include how your production methods might impact the local environment through waste and
pollution.

Supply chain complexity and risks of labor exploitation

When it comes to sourcing products and services from overseas, managing suppliers and supply
chains can also be a tricky process. Unfortunately, the length and complexity of supply chains
increases the chance of working with suppliers who have unethical and even illegal business
practices. Of growing concern is the risk in international business of forced labor and worker
exploitation.