Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

MAHARANA PRATAP GROUP OF INSTITUTIONS

KOTHI MANDHANA, KANPUR

(Approved by AICTE, New Delhi and Affiliated to CSJMU, Kanpur Nagar)

Digital Notes
[Department of Management]
Subject Name Emerging Technologies in Global
Business Environment
Subject Code KMBN401
Course MBA 2nd Year
Branch
Semester 4th
Prepared by Mr. Gurmeet Singh
Reference No.

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

Contents
Meaning and Nature of Industry 4.0 ................................................................................................... 2
Industry 4.0 technologies ...................................................................................................................... 4
Benefits of Industry 4.0......................................................................................................................... 6
International Business .......................................................................................................................... 7
Difficulties in International Business .................................................................................................. 7
Advantages of International Business ................................................................................................. 8
Technological Factors that are driving change in International Business Management ............... 9
Social factors affecting business ........................................................................................................... 12
Cultural factors affecting business .................................................................................................... 12
Globalisation........................................................................................................................................ 13
Advantages of Globalisation .............................................................................................................. 14
Disadvantages of Globalisation .......................................................................................................... 15
The Legal and Regulatory Environment ............................................................................................... 16
Impact of Natural Environment on Business ........................................................................................ 16
Impact of Ethics on Global Business ................................................................................................. 18
Ethics and Management Practices................................................................................................. 18
Ethics and Corruption .................................................................................................................... 20
What is Digital Transformation?....................................................................................................... 20
How Digital Transformation improves Customer Experience ....................................................... 21

Meaning and Nature of Industry 4.0

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

The Industry 4.0 or Fourth Industrial Revolution is a new and imminent industrial model characterized as
advanced manufacturing. What most differentiates this new industry model from the three previous industrial
revolutions is the integration of its components. These are represented by people and their human work,
machines and equipment, and technologies. Industry 4.0’s internal environment is more integrated, agile,
accurate, synchronized, and encourages external stimuli to arrive and be received in the same way.

This new industrial model is also known for its high technological, virtual and digital positioning. Existing
technologies in industry 4.0 are not necessarily new, what changes is the integration between them, allowing the
industry to behave dynamically and quickly respond to internal and external needs. In the context of production,
these technologies enable production processes to be more efficient, lean and faster.

In industry 4.0 as well as in today’s industries, care for the environment, proper and conscious use of natural
resources, optimization of physical resources used, waste generation and reuse, and the search for no waste
must also be strictly observed. Industry 4.0 Environmental Management is as relevant an area as all of its
innovative potential, as it must set guidelines, supervise actions and monitor processes so that they are
consistent with an environmentally sound and truly sustainable industrial profile.

The aforementioned industry 4.0 technologies are strong supports for Environmental Management 4.0. The
technological potential of the new industrial model is one of the key aspects that allow industry 4.0 to be known
as a truly sustainable manufacturing model. Its technologies working in an integrated way, allows not only the
environmental management process to be more solid, but the industrial activity itself in all its processes. These
become more virtualized, lean, accurate and made on demand.

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

“The general definition of Industry 4.0 is the rise of digital industrial technology. Industry 4.0 transformations
allow us to work alongside machines in new, highly productive ways.” 

Daniel Burrus

Industry 4.0 technologies

Industry 4.0 is built on nine technology pillars. These innovations bridge the physical and digital worlds and
make smart and autonomous systems possible. Businesses and supply chains already use some of these
advanced technologies, but the full potential of Industry 4.0 comes to life when they’re used together.

1. Big Data and AI analytics: In Industry 4.0, Big Data is collected from a wide range of sources, from
factory equipment and Internet of Things (IoT) devices, to ERP and CRM systems, to weather and traffic
apps. Analytics powered by artificial intelligence (AI) and machine learning are applied to the data in real
time – and ins
2. ights are leveraged to improve decision-making and automation in every area of supply chain
management: supply chain planning, logistics management, manufacturing, R&D and engineering,
enterprise asset management (EAM), and procurement.
2. Horizontal and vertical integration: The backbone of Industry 4.0 is horizontal and
vertical integration. With horizontal integration, processes are tightly integrated at the “field level” – on
the production floor, across multiple production facilities, and

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

3. across the entire supply chain. With vertical integration, all the layers of an organization are tied
together – and data flows freely from the shop floor to the top floor and back down again. In other
words, production is tightly integrated with business processes like R&D, quality
4. assurance, sales and marketing, and other departments – and data and knowledge silos are a thing of the
past.
3. Cloud computing: Cloud computing is the “great enabler” of Industry 4.0 and digital
transformation. Today’s cloud technology goes way beyond speed, scalability, storage, and cost efficiencies.
It provides the foundation for most advanced technologies – from AI and machine learning to the Internet of
Things – and gives businesses the means to innovate. The data that fuels Industry 4.0 technologies resides in
the cloud, and the cyber-physical systems at the core of Industry 4.0 use the cloud to communicate and
coordinate.
4. Augmented reality (AR): Augmented reality, which overlays digital content on a real environment, is a
core concept of Industry 4.0. With an AR system, employees use smart glasses or mobile devices to
visualize real-time IoT data, digitized parts, repair or assembly instructions, training content, and
more when looking at a physical thing – like a piece of equipment or a product. AR is still emerging
but has major implications for maintenance, service, and quality assurance as well as technician training
and safety.
5. Industrial Internet of Things (IIoT): The Internet of Things (IoT) – more specifically, the Industrial
Internet of Things – is so central to Industry 4.0 that the two terms are often used interchangeably. Most
physical things in Industry 4.0 – devices, robots, machinery, equipment, products – use sensors and
RFID tags to provide real-time data about their condition, performance, or location. This technology lets
companies run smoother supply chains, rapidly design and modify products, prevent equipment
downtime, stay on top of consumer preferences, track products and inventory, and much more.
6. Additive manufacturing/3D printing: Additive manufacturing, or 3D printing, is another key
technology driving Industry 4.0. 3D printing was initially used to as a rapid prototyping tool but now
offers a broader range of applications, from mass customization to distributed manufacturing. With 3D
printing, for example, parts and products can be stored as design files in virtual inventories and printed
on demand at the point of need – reducing both transportation distances and costs.
7. Autonomous robots: With Industry 4.0, a new generation of autonomous robots is emerging.
Programmed to perform tasks with minimal human intervention, autonomous robots vary greatly in size
and function, from inventory scanning drones to autonomous mobile robots for pick and place
operations. Equipped with cutting-edge software, AI, sensors, and machine vision, these robots are
capable of performing difficult and delicate tasks – and can recognize, analyze, and act on information
they receive from their surroundings.

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

8. Simulation/digital twins: A digital twin is a virtual simulation of a real-world machine, product,

process, or system based on IoT sensor data. This core component of Industry 4.0 allows businesses
to better understand, analyze, and improve the performance and maintenance of industrial systems and
products. An asset operator, for example, can use a digital twin to identify a specific malfunctioning
part, predict potential issues, and improve uptime.
9. Cybersecurity: With the increased connectivity and use of Big Data in Industry 4.0, effective
cybersecurity is paramount. By implementing a Zero Trust architecture and technologies like machine
learning and blockchain, companies can automate threat detection, prevention, and response –
and minimize the risk of data breaches and production delays across their networks.

Benefits of Industry 4.0

Intelligent products

Develop connected, self-aware products that are capable of sharing information about their health, location,
usage level, storage conditions, and more. The data these smart products share can help you improve everything
from product quality and customer service to logistics and R&D. They can also anticipate service needs, receive
remote upgrades, and open the door to new, service-based business models.

Intelligent factories

Run smart factories – highly digitized, largely autonomous facilities that take full advantage of advanced
technologies like Big Data, artificial intelligence, robotics, analytics, and the IoT. Also called Factory
4.0, these plants are self-correcting, employ smart manufacturing 4.0 processes, and make it possible to deliver
customized products cost efficiently and at scale.

Intelligent assets

Almost every physical asset deployed today has built-in sensors – which, when connected to the IoT and
analytics, are game changers for enterprise asset management. With intelligent assets, technicians can monitor
asset performance in real time, anticipate and prevent downtime, employ dynamic and predictive maintenance,
take advantage of digital twins, and tightly integrate assets and business processes.

Empowered people

No matter how autonomous your systems get, you will always need people. Empower them with technologies
like AI and access to live sensor data – so they know what’s happening on the shop floor and are ready to make

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

quick decisions and handle issues as they spring up. Wearable devices and augmented reality apps can also help
them solve problems, monitor their health, and keep them safe.

Companies are experiencing the benefits

There’s a broad portfolio of Industry 4.0 solutions in the market, helping thousands of companies transform
their digital supply chain – reinventing production, focusing on customers, and connecting their entire
organization.

Here are some benefits companies are experiencing:

• Radical improvements in productivity and automation: Businesses are making data-driven decisions
across their operations, improving forecast accuracy, supporting on-time delivery, and building profit-
optimized plans.
• Resiliency and agility no matter what the market or economy bring: Companies are shaping the
future digital supply chain based on state-of-the-art planning.
• Confidence to explore new business models and seize opportunities quickly: Thanks to Industry 4.0
solutions, businesses are reducing costs, improving market efficiency, and connecting supply chains by
sea, land, and air.
• Green and sustainable solutions without sacrificing profitability: Customers are becoming more
efficient and cost-effective by going digital – while meeting their environmental objectives without
compromising on other business goals, such as profitability and scalability.

International Business

International Business: It is defined as the process of extending the business activities from domestic to any
foreign country with an intention of targeting international customers.

It is also defined as the conduction of business activities by any company across the nations

It can also be defined as the expansion of business functions to various countries with an objective of fulfilling
the needs and wants of international customers.

Difficulties in International Business

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

What make international business strategy different from the domestic are the differences in the marketing
environment. The important special problems in international marketing are given below:

1. POLITICAL AND LEGAL DIFFERENCES The political and legal environment of foreign markets is
different from that of the domestic. The complexity generally increases as the number of countries in which a
company does business increases. It should also be noted that the political and legal environment is not the
same in all provinces of many home markets. For example, the political and legal environment is not exactly the
same in all the states of India.

2. CULTURAL DIFFERENCES The cultural differences, is one of the most difficult problems in
international marketing. Many domestic markets, however, are also not free from cultural diversity.

3. ECONOMIC DIFFERENCES The economic environment may vary from country to country.

4. DIFFERENCES IN THE CURRENCY UNIT The currency unit varies from nation to nation. This may
sometimes cause problems of currency convertibility, besides the problems of exchange rate fluctuations. The
monetary system and regulations may also vary.

5. DIFFERENCES IN THE LANGUAGE An international marketer often encounters problems arising out of
the differences in the language. Even when the same language is used in different countries, the same words of
terms may have different meanings. The language problem, however, is not something peculiar to the
international marketing. For example: the multiplicity of languages in India.

6. DIFFERENCES IN THE MARKETING INFRASTRUCTURE The availability and nature of the

marketing facilities available in different countries may vary widely. For example, an advertising medium very
effective in one market may not be available or may be underdeveloped in another market.

7. TRADE RESTRICTIONS A trade restriction, particularly import controls, is a very important problem,
which an international marketer faces.

8. HIGH COSTS OF DISTANCE When the markets are far removed by distance, the transport cost becomes
high and the time required for affecting the delivery tends to become longer. Distance tends to increase certain
other costs also.

9. DIFFERENCES IN TRADE PRACTICES Trade practices and customs may differ between two countries.

Advantages of International Business

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

1. To achieve higher rate of profits:

• Expanding the production capacities beyond the demand of the domestic co muntry
• Severe competition in the home country
• Limited home market

3. Political stability vs. political instability:

• Availability of technology and competent
• Human resource
• High cost of transportation
• Nearness to raw materials
• Availability of quality human resources at low cost
• Liberalization and globalization

4. To increase market share:

• To achieve higher rate of economic development
• Tariffs and import quotas

5. High living standards:

• Increased socio-economic welfare
• Wider market
• Reduced effects of business cycles
• Reduced risks Large-scale economies

6. Potential untapped markets:

• Provides the opportunity for and challenge to domestic business
• Division of labour and specialization
• Economic growth of the world
• Optimum and proper utilization of world resources
• Cultural transformation
• Knitting the world into a closely interactive traditional village.

Technological Factors that are driving change in International Business Management

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

Telecommunications

Not so long ago, there was a time where writing letters was the only way to communicate with your
international business connections. These letters could take days, weeks, and even months to reach their
destination. But now, look at where technology has gotten us! We’re able to send messages and emails instantly
and interact through platforms like Skype and Zoom.

Telecommunications technology is what makes running an international business doable. It’s necessary for
sending invoices, dealing with customers, communicating with suppliers, and keeping in touch with employees
that may live in other parts of the world.

Social media

It could be said that social media is a branch of telecommunications, but it deserves attention of its own as
social media has given international business a platform from which it can skyrocket. Social media keeps tabs
on global trends in fashion, decor, art, furniture, and a wide variety of other products, which provides
international businesses with impressive insight.

Whether it be Instagram, Facebook, Linked In, or others, having a social media account allows international
businesses to connect with their target audience worldwide and advertise their products to them. Where once
people would not be exposed to businesses from other countries, social media has made it easier than ever to
stumble upon businesses from all over the world.

Transportation

There have been several major advances in transportation in the last 80 years or so. No one wants to wait
months for their international order anymore; that’s because commercial jet craft has made transporting
products to different areas of the globe affordable and timely. Customers these days are all about instant
gratification, so there is a major emphasis on getting orders shipped as quickly as possible.

The explosion in air travel and airports worldwide has also made travelling for business people more accessible
and created a huge rise in the travel industry, creating opportunities for many international businesses.

Production

If you’re an international business that sells products, you would have directly benefited from the latest
innovations in production. Technology has played a major role in the production processes we know today and
associated processes such as production planning, financial planning, and marketing. Thanks to technology,
companies may have production and manufacturing plants in several different countries, and you can choose

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

where to create your manufacturing plant based on where materials are easily sourced and where skilled labour
is affordable.

Market globalisation

Market globalisation began forming its roots when it became more affordable and feasible to transport and sell
goods in different countries. The internet is seen as a low-cost market globalisation network in an electronic
form. Because of social media, television, and the low costs involved in transporting products around the world,
there has become a sort of convergence in consumer preferences and tastes. For instance, there was once a time
when only Americans wore jeans, but now people worldwide are interested in buying and wearing jeans, and
that is how market globalisation works. The same thing goes for brands such as McDonald’s, Pizza Hut etc.

A global culture is created in which different countries begin having similar lists of wants and demands.

eCommerce

eCommerce platforms are platforms or websites that specialise in selling products online, usually to an
international audience. Over the years, we have seen many advances in eCommerce technology. As a result, we
are at a point where almost anyone can make their own eCommerce site with very little trouble, thanks to all of
the templates and applications out there. This gives the average person, as well as multi-million dollar
corporations, the opportunity to have their goods online and available to be sold.

eCommerce platforms are usually fully integrated with shipping, payment, customer service, etc.

Online banking

Pay instantly with the click of a button! Technology has played a significant role in online banking, and we
have seen tremendous growth in just the past few years. Paying online, no matter where you’re located in the
world has truly become easier than ever before, and there are so many options available to you! You can use
your credit card, payment solutions such as the popular Paypal, as well as digital currencies like Bitcoin in some
instances. In addition, exchange rates and payment fees have become lower, making shopping internationally
easy and affordable.

Whether you’re a customer buying a pair of shoes online or an international business owner who needs to pay
his suppliers and employees, online banking and payment services have made payments exceptionally
convenient.

Technology plays a major role in the security behind all online transactions.

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

Social factors affecting business

• social classes and their influence on the society,

• average disposable income level,
• wealth of people,
• economic inequalities,
• level of education,
• access to education (free, paid),
• level and access to health-care,
• health consciousness in society (smoking, drinking, drug use, safe driving, etc.),
• buying habits and consumer preferences,
• average retirement age (for men and women),
• personality of average consumer,
• reputation of company in society,
• conflicts within society,
• susceptibility to influence,
• social organization (communities, social groups, gangs, ad-hoc gatherings, etc.),
• uncertainty avoidance dominating in society (or other G. Hofstede socio-cultural factors).

Cultural factors affecting business

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

• fashion trends,
• lifestyle,
• social media influence (blogging, etc.) vs traditional media (press, TV, radio),
• dominant communication technology in social groups,
• participation in cultural events,
• willingness to pay for tickets,
• popular actors, music styles, design forms, etc.
• creativity of people,
• relative population of local (folk) artists vs. global imported culture,
• various other determinants of culture.

Globalisation

By the term globalisation we mean opening up of the economy for world market by attaining international

competitiveness. Thus the globalisation of the economy simply indicates interaction of the country relating to

production, trading and financial transactions with the developed industrialized countries of the world.

Accordingly, the term globalisation has four parameters:

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

(a) Permitting free flow of goods by removing or reducing trade barriers between the countries,

(b) Creating environment for flow of capital between the countries,

(c) Allowing free flow in technology transfer and

(d) Creating environment for free movement of labour between the countries of the world. Thus taking the

entire world as global village, all the four components are equally important for attaining a smooth path for

globalisation.

Advantages of Globalisation

The following are some of the important advantages of globalisation for a developing country like India:
(i) Globalisation helps to boost the long run average growth rate of the economy of the country through:

(a) Improvement in the allocative efficiency of resources;

(b) Increase in labour productivity; and

(c) Reduction in capital-output ratio.

(ii) Globalisation paves the way for removing inefficiency in production system. Prolonged protective scenario
in the absence of globalisation makes the production system careless about cost effectiveness which can be
attained by following the policy of globalisation.
(iii) Globalisation attracts entry of foreign capital along with foreign updated technology which improves the
quality of production.
(iv) Globalisation usually restructure production and trade pattern favouring labour-intensive goods and labour-
intensive techniques as well as expansion of trade in services.

(v) In a globalized scenario, domestic industries of developing country become conscious about price reduction
and quality improvement to their products so as to face foreign competition.
(vi) Globalisation discourages uneconomic import substitution and favour cheaper imports of capital goods
which reduces capital-output ratio in manufacturing industries. Cost effectiveness and price reduction of
manufactured commodities will improve the terms of trade in favour of agriculture.

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

(vii) Globalisation facilitates consumer goods industries to expand faster to meet growing demand for these
consumer goods which would result faster expansion of employment opportunities over a period of time. This
would result trickle down effect to reduce the proportion of population living below the poverty line
(viii) Globalisation enhances the efficiency of the banking insurance and financial sectors with the opening up
to those areas to foreign capital, foreign banks and insurance companies.

Disadvantages of Globalisation

The following are some of these disadvantages:

(i) Globalisation paves the way for redistribution of economic power at the world level leading to domination

by economically powerful nations over the poor nations.

(ii) Globalisation usually results greater increase in imports than increase in exports leading to growing trade

deficit and balance of payments problem.

(iii) Although globalisation promote the idea that technological change and increase in productivity would lead

to more jobs and higher wages but during the last few years, such technological changes occurring in some

developing countries have resulted more loss of jobs than they have created leading to fall in employment

growth rates.

(iv) Globalisation has alerted the village and small scale industries and sounded death-knell to it as they cannot

withstand the competition arising from well organized MNCs.

(v) Globalisation has been showing down the process to poverty reduction in some developing and

underdeveloped countries of the world and thereby enhances the problem of inequality.

(vi) Globalisation is also posing as a threat to agriculture in developing and underdeveloped countries of the

world. As with the WTO trading provisions, agricultural commodities market of poor and developing countries

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

will be flooded farm goods from countries at a rate much lower than that indigenous farm products leading to a

death-blow to many farmers.

(vii) Implementation of globalisation principle becoming harder in many industrially developed democratic

countries to ask its people to bear the pains and uncertainties of structural adjustment with the hope of getting

benefits in future.

The Legal and Regulatory Environment

One of the more difficult aspects of doing business globally is dealing with vast differences in legal and
regulatory environments. The United States, for example, has an established set of laws and regulations that
provide direction to businesses operating within its borders. But because there is no global legal system, key
areas of business law—for example, contract provisions and copyright protection—can be treated in different
ways in different countries. Companies doing international business often face many inconsistent laws and
regulations. To navigate this sea of confusion, American businesspeople must know and follow both U.S. laws
and regulations and those of nations in which they operate.

Business history is filled with stories about American companies that have stumbled in trying to comply with
foreign laws and regulations. Coca-Cola, for example, ran afoul of Italian law when it printed its ingredients list
on the bottle cap rather than on the bottle itself. Italian courts ruled that the labeling was inadequate because
most people throw the cap away. In another case, 3M applied to the Japanese government to create a joint
venture with the Sumitomo Industrial Group to make and distribute magnetic tape products in Japan. 3M spent
four years trying to satisfy Japan’s complex regulations, but by the time it got approval, domestic competitors,
including Sony, had captured the market. By delaying 3M, Japanese regulators managed, in effect, to stifle
foreign competition.

One approach to dealing with local laws and regulations is hiring lawyers from the host country who can
provide advice on legal issues. Another is working with local businesspeople who have experience in
complying with regulations and overcoming bureaucratic obstacles.

Impact of Natural Environment on Business

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

Natural factors such as climate, soil, forests, minerals, rivers and ocean have tremendous influence on the
functioning and growth of commerce and industry. The impact of natural environment of business may be
described under the following heads:

• Source of Raw Materials: Natural and physical environment provides the raw materials required for
the functioning of industries. For example, iron and steel industry cannot function without ore and
other necessary minerals. In fact, the mines, flora, fauna, land mass, nature of soil, etc. serve as the
basis of production function.

• Mainstay of Agriculture: People and business both require several types of agricultural items for
their survival and growth. Agriculture largely depends on nature. Cultivation of crops and raising of
livestock are directly dependent on soil. The types of crops that can be grown in an area depend upon
climate and soil.

• Location of Industry: Heavy industry has to be located near the source of raw materials. For
example. India’s iron and steel industry is concentrated in the regions which are rich in the deposits
of iron ore and coal. Extractive industries such as mining, oil drilling, stone quarrying, etc. depend on
the availability of minerals deposited by nature. Industrialists don not like to set up factories in areas
which are climate affect the location of certain industries like cotton textiles and watch
manufacturing.

• Employment Generation: Existence of minerals and other natural resources alone does not
guarantee economic prosperity of people. Proper exploration and utilisation is necessary. Exploitation
and utilization of natural resources provides jobs to millions.

• Foreign Exchange Earner: A country can export its surplus natural resources like minerals and oils
and thereby earn valuable foreign exchange. Arabian countries have become affluent by exploiting
their oil resources gifted by nature. In fact the genesis of international trade lies in the natural
environment. Trade between nation is the outcome of geographical differences. Due to natural factors
some regions are more suitable for production of certain goods, e.g., tea and coffee in India,
Petroleum in Middle East, dairy products in Denmark and so on.

• Basis of Transportation and Communication: Business depends upon transportation and

communication facilities which in turn are largely dependent on geographical factors. Uneven land
surface, deserts, oceans and forests are barriers in transportation and communication, Though modern
technology has enabled man to overcome these barriers, the costs increase tremendously. Even today
business activities do not flourish in areas which by nature lack efficient transportation and
communication systems.

• Key to Human Life: Business can prosper only when people are healthy and happy. Nature serves
not only as a store house of raw materials, it also provides the physical and biological conditions

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

within which people can live in a healthy and happy manner. Almost every commodity which we
consume and produce has existed originally in the natural environment. Nature is also the source of
almost all the energy used in production and distribution. Nature has is a symbiotic link between man
and nature. In fact, earth is so crucial to mankind that out Vedas and seers suggest worship to the
Mother Earth.

• Demand Pattern: Demand pattern depends upon topographical and weather conditions. For
example, jeeps may be in greater demand than cars in hilly areas with a difficult terrain. Similarly,
woolens are in demand in cool areas while coolers and air conditioners are more in demand in high
temperature regions. Natural environment may also call for modifications in product mix, packaging
and storage systems.

Impact of Ethics on Global Business

At first, it may seem relatively easy to identify unethical behavior. When the topic of business ethics is raised,
most people immediately focus on corruption and bribery. While this is a critical result of unethical behavior,
the concept of business ethics and—in the context of this book—global business ethics is much broader. It
impacts human resources, social responsibility, and the environment. The areas of business impacted by global
perceptions of ethical, moral, and socially responsible behavior include the following:

• Ethics and management

• Ethics and corruption
• Corporate social responsibility

Ethics and Management Practices

Ethics impacts various aspects of management and operations, including human resources, marketing, research
and development, and even the corporate mission.

The role of ethics in management practices, particularly those practices involving human resources and
employment, differs from culture to culture. Local culture impacts the way people view the employee-employer
relationship. In many cultures, there are no clear social rules preventing discrimination against people based on
age, race, gender, sexual preference, handicap, and so on. Even when there are formal rules or laws against
discrimination, they may not be enforced, as normal practice may allow people and companies to act in
accordance with local cultural and social practices.

Culture can impact how people see the role of one another in the workplace. For example, gender issues are at
times impacted by local perceptions of women in the workplace. So how do companies handle local customs
and values for the treatment of women in the workplace? If you’re a senior officer of an American company, do
you send a woman to Saudi Arabia or Afghanistan to negotiate with government officials or manage the local

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

office? Does it matter what your industry is or if your firm is the seller or buyer? In theory, most global firms
have clear guidelines articulating antidiscrimination policies. In reality, global businesses routinely self-censor.
Companies often determine whether a person—based on their gender, ethnicity, or race—can be effective in a
specific culture based on the prevailing values in that culture. The largest and most respected global companies,
typically the Fortune Global 500, can often make management and employment decisions regardless of local
practices. Most people in each country will want to deal with these large and well-respected companies. The
person representing the larger company brings the clout of their company to any business interaction. In
contrast, lesser-known, midsize, and smaller companies may find that who their representative is will be more
important. Often lacking business recognition in the marketplace, these smaller and midsize companies have to
rely on their corporate representatives to create the professional image and bond with their in-country
counterparts.

Cultural norms may make life difficult for the company as well as the employee. In some cultures, companies
are seen as “guardians” or paternal figures. Any efforts to lay off or fire employees may be perceived as
culturally unethical. In Japan, where lifelong loyalty to the company was expected in return for lifelong
employment, the decade-long recession beginning in the 1990s triggered a change in attitude. Japanese
companies finally began to alter this ethical perception and lay off workers without being perceived as
unethical.

Global corporations are increasingly trying to market their products based not only on the desirability of the
goods but also on their social and environmental merits. Companies whose practices are considered unethical
may find their global performance impacted when people boycott their products. Most corporations understand
this risk. However, ethical questions have grown increasingly complicated, and the “correct” or ethical choice
has, in some cases, become difficult to define.

For example, the pharmaceutical industry is involved in a number of issues that have medical ethicists
squirming. First, there’s the well-publicized issue of cloning. No matter what choice the companies make about
cloning, they are sure to offend a great many consumers. At the same time, pharmaceutical companies must
decide whether to forfeit profits and give away free drugs or cheaper medicines to impoverished African
nations. Pharmaceutical companies that do donate medicines often promote this practice in their corporate
marketing campaigns in hopes that consumers see the companies in a favorable light.

Tobacco companies are similarly embroiled in a long-term ethical debate. Health advocates around the world
agree that smoking is bad for a person’s long-term health. Yet in many countries, smoking is not only
acceptable but can even confer social status. The United States has banned tobacco companies from adopting
marketing practices that target young consumers by exploiting tobacco’s social cache. However, many other
countries don’t have such regulations. Should tobacco companies be held responsible for knowingly marketing
harmful products to younger audiences in other countries?

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

Ethics and Corruption

To begin our discussion of corruption, let’s first define it in a business context. Corruption is “giving or
obtaining advantage through means which are illegitimate, immoral, and/or inconsistent with one’s duty or the
rights of others. Corruption often results from patronage.

Our modern understanding of business ethics notes that following culturally accepted norms is not always the
ethical choice. What may be acceptable at certain points in history, such as racism or sexism, became
unacceptable with the further development of society’s mind-set. What happens when cultures change but
business practices don’t? Does that behavior become unethical, and is the person engaged in the behavior
unethical? In some cultures, there may be conflicts with global business practices, such as in the area of gift
giving, which has evolved into bribery—a form of corruption.

Paying bribes is relatively common in many countries, and bribes often take the form of grease payments,
which are small inducements intended to expedite decisions and transactions. In India and Mexico, for example,
a grease payment may help get your phones installed faster—at home or at work. Transparency International
tracks illicit behavior, such as bribery and embezzlement, in the public sector in 180 countries by surveying
international business executives. It assigns a CPI (Corruption Perceptions Index) rating to each country. New
Zealand, Denmark, Singapore, and Sweden have the lowest levels of corruption, while the highest levels of
corruption are seen in most African nations, Russia, Myanmar, and Afghanistan.

Even the most respected of global companies has found itself on the wrong side of the ethics issue and the law.
In 2008, after years of investigation, Siemens agreed to pay more than 1.34 billion euros in fines to American
and European authorities to settle charges that it routinely used bribes and slush funds to secure huge public-
works contracts around the world. “Officials said that Siemens, beginning in the mid-1990s, used bribes and
kickbacks to foreign officials to secure government contracts for projects like a national identity card project in
Argentina, mass transit work in Venezuela, a nationwide cell phone network in Bangladesh and a United
Nations oil-for-food program in Iraq under Saddam Hussein. ‘Their actions were not an anomaly,’ said Joseph
Persichini Jr., the head of the Washington office of the Federal Bureau of Investigation. ‘They were standard
operating procedures for corporate executives who viewed bribery as a business strategy.’”

What is Digital Transformation?

Digital Transformation is the process of fundamentally changing the way a business operates to integrate
technology at all levels of the business and moving to a fully connected and online business strategy. It’s about
improving the speed and quality of how businesses interact with customers at all stages of their journey. A
digital transformation isn’t just about adding more fancy technology to the business. For a true transformation,
businesses need to change the way they think about connections between customers, departments and other

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

partners. It’s the difference between upgrading your horse and buggy by investing in a faster horse or a Model T
car. They are both improvements, but one is a transformation.

How Digital Transformation improves Customer Experience

1. Personalizing the digital customer experience

A study states that more than 75% of consumers are more likely to enjoy the digital customer service if
companies provide any of these three services:
Being recognized – consumers are more likely to shop online if they are recognized by their names.
Being offered relevant recommendations – customers are more likely to spend money online when provided
suggestions based on their previous purchases or preferences.
Being remembered – buyers are more likely to purchase if the company knows their purchase history.
For instance, Netflix is an online streaming application that focuses on personalizing the digital customer
experience and enhancing the customer journey.

2. Consistent customer journey via seamless multi-channel

Technology has provided customers with the luxury of multiple channels. Sometimes customers feel that a new
interaction on a different platform is a new journey. However, customers usually want to feel familiarity so that
new interactions on different platforms are an extension of the same journey. One can overcome these
challenges by providing a seamless multi-channel as it leads to:
Consistent customer experience: When you provide a consistent customer journey through seamless multi-
channel it results in customer satisfaction and loyalty, says McKinsey.
Lower cost to resolve issues: A good seamless multi-channel experience leads to customer satisfaction, which
results in happier customers! Happy customers mean less volume for customer care/service channels, which
aids the cost to resolve issues.
Companies are connecting business silos, harnessing the potential of their customer data, and driving ongoing
improvements to serve the customers with relevant and consistent experience, irrespective of channel or device.

3. Embracing automation
A survey shows that 84% of the consumers preferred interacting with computer automated systems. These
automated systems are available any time, these systems are less biased, and fast. Thus, these systems increase
the customer’s overall digital experience. In case, you have not used automation as a part of your digital client
experience strategy, then we suggest you start now!

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh

Maharana Pratap Group of Institution

MBA 2rd year IVth Sem - KMBN 401

{ Emerging Technologies in Global Business
Environment }

4. Saves time: Waiting for a response can be time consuming for a customer. Automated responses engage
and provide services faster than human advisors or customer care services. Since, in today’s age and
time, customers expect service response within one hour irrespective of the time or date.
5. Mitigates prejudice: Sometimes, customers feel that human advisors are being rude or biased. By
embracing automation, you are mitigating this risk, since the communication cannot be biased and will
be polite at all times!
6. Increases team efficiency: In order to increase efficiency, the time spent by team members on basic
processes like follow-up emails and ticket prioritization should be automated as well for a better digital
customer experience transformation process.

Department of Management www.mpgi.edu.in Mr. Gurmeet Singh