IEU ASSIGNMENT BRIEF

Assignment Front Sheet

Qualification Subject Title

IEU S2 Master of Management (MM) International Management

Lecturer name Assessor name

Prof. Patrick Khor Prof. Patrick Khor
Admission Number: Intake (Month / Year) Learner Name
2022/2023 Tarzan Efendi
Task 1: Marks (30%)

What are the major trends and developments that have shaped the international business landscape
over the past few decades, and how have companies responded to these changes?

The global business environment has undergone significant changes in recent decades, influenced by many
trends and advancements. Companies of all sizes have been forced to adjust to these changes, modifying
their strategies and operations to succeed in an era characterised by globalisation, technical advancements,
geopolitical developments, and evolving customer behaviour. In light of the sluggish domestic economic
growth, your organisation may need to consider venturing into international markets in order to sustain
profitability. Prior to analysing foreign markets, it is important to possess knowledge about the prominent
patterns in global commerce in order to exploit those that may be advantageous to your corporation. The
global marketplaces are undergoing rapid transformation, presenting an opportunity for your organisation
to capitalise on the dynamic landscape and carve out a specialised market position (Markgraf, 2023)
.

Globalisation is a significant factor in the development of worldwide commerce ( Katerina & Aneta, 2014).
In recent decades, obstacles to trade and investment have decreased, allowing corporations to broaden
their activities internationally. Multinational firms have capitalised on possibilities to enter new markets,
use varied consumer bases, and expand their sources of revenue. Companies have responded to
globalisation by implementing tactics such as entering new markets through mergers and acquisitions,
forming strategic partnerships, and developing a robust global presence. For example, companies with
significant influence in the technology industry such as Google and Amazon have utilised their advanced
technological capabilities to extend their presence globally, effectively penetrating marketplaces around the
world ( Ahi, 2019).

The emergence of the digital era has significantly revolutionised global commerce. The advent of
technology, such as the internet, e-commerce, and data analytics, has fundamentally transformed global
business operations. The Fourth Industrial Revolution has led to the emergence of intelligent supply
chains, sophisticated communication tools, and automation, which have resulted in increased efficiency
and innovation. Companies have reacted by adopting digital transformation projects, integrating data-
driven decision-making processes, and allocating resources to technologies that improve operational
flexibility. Alibaba and Amazon, as major players in the e-commerce industry, have effectively utilised
technology to establish seamless connections with consumers worldwide, hence causing significant
disruptions to conventional retail models.

The dynamics of international trade have been significantly influenced by geopolitical shifts, including
changes in alliances, trade pacts, and hostilities. The emergence of protectionist views in certain areas, as
demonstrated by occurrences such as Brexit and trade frictions among significant economies, has
compelled corporations to reevaluate their supply chain strategy and market preferences. Companies have
employed scenario planning, diversified their supply bases, and attempted to reduce risks related to
political uncertainties in response to geopolitical changes. Certain entities have moved their production
facilities to different locations, while others have actively searched for new markets in order to
counterbalance anticipated delays.

Sustainability and Corporate Social Responsibility (CSR):

The increasing recognition of environmental and social concerns has led to a fundamental change in
corporate ideals. International corporations now regard sustainability and corporate social responsibility
(CSR) as essential factors. Companies are anticipated to conduct their activities in a responsible manner,
taking into account the environmental consequences and making constructive contributions to the
communities they serve. Reactions to this pattern involve embracing sustainable methods, ensuring ethical
acquisition, and providing clear and open disclosure. Unilever and Patagonia have included sustainability
as a fundamental principle, integrating their economic strategies with a dedication to social and
environmental accountability.

The transformation of consumer behaviour has significantly influenced the development of global
company strategy. Consumers are exhibiting a growing inclination towards personalised experiences, with
their tastes differing across various cultures and locations. As a result of this tendency, corporations have
been adjusting their products, marketing strategies, and customer engagement methods to cater to the
varied expectations of consumers. Companies have allocated resources to market research, data analytics,
and localised marketing strategies in order to adapt to evolving customer behaviour. Global corporations
such as Coca-Cola and McDonald's have modified their products to cater to the preferences of specific
regions, while yet upholding a unified global brand identity.

In summary, the international business scene has been significantly reshaped by a series of trends and
events during the past few decades. The difficulties and opportunities arise from globalisation, technology
improvements, geopolitical shifts, sustainability issues, and changing consumer dynamics. Prosperous
organisations have reacted by wholeheartedly embracing innovation, cultivating flexibility, and
harmonising their plans with the ever-changing global environment. Given the ongoing changes in the
global business landscape, it is imperative for organisations to effectively adapt to these developments in
order to ensure long-term growth and resilience in the face of upcoming obstacles.

Task 2: Marks (30%)

What are the challenges managers face when trying to transport their organization's culture to another
country? How do Hofstede's cultural dimensions play a role in this process? Explain the concept of
globalization and how it impacts organizational behaviour, including gender roles, religious observances,
and communication.

Amidst the current trend of globalisation, firms are expanding their operations internationally, with the
goal of accessing varied markets and taking advantage of global prospects. Nevertheless, the process of
moving an organization's culture to a different location presents a series of obstacles for managers. This
essay discusses the challenges faced by managers when trying to transfer organisational culture. It also
explores Hofstede's cultural dimensions and analyses the wider influence of globalisation on organisational
behaviour, including gender roles, religious practices, and communication.

Difficulties in Transplanting Organisational Culture: The process of transferring organisational culture

across different locations is an intricate undertaking, filled with obstacles. These issues stem from the
complex interaction of cultural disparities, regional anticipations, and corporate principles. Primary
obstacles encompass: (1) Cultural variability refers to the existence of distinct cultural norms, values, and
behaviours across different countries. Enforcing a singular organisational culture can potentially conflict
with local customs, impeding the process of acceptance and integration. Communication barriers arise due
to variations in language and communication practices among different cultures. Errors in interpretation
and comprehension can hinder the efficiency of communication and cooperation. Resistance to change may
arise among employees from diverse cultures when confronted with alterations that stray from their
established work practices. Resistance may arise when there is a conflict between the current organisational
culture and the desired one. (2) Leadership techniques: Leadership techniques that prove effective in one
culture may not resonate in another. It is essential to modify leadership strategies to match local
expectations in order to achieve successful cultural integration.
Legal and ethical variations exist worldwide due to differing frameworks. What is considered acceptable in
one country may be disapproved or even forbidden in another. Mastering these differences is crucial. (1)
Hofstede's Cultural Dimensions: Geert Hofstede's thesis on cultural dimensions offers useful insights for
comprehending cultural disparities among nations. The six aspects encompass Power Distance,
Individualism vs. Collectivism, Masculinity vs. Femininity, Uncertainty Avoidance, Long-Term Orientation
vs. Short-Term Normative Orientation, and Indulgence vs. Restraint. Power Distance refers to the degree to
which individuals in institutions and organisations with less authority are willing to accept and anticipate
an unequal distribution of power. High power distance cultures exhibit more acceptance of hierarchical
organisations.
Individualism against collectivism refers to the extent to which individuals are incorporated into social
groups. Individualistic cultures place a strong emphasis on individual objectives, whereas collectivist
cultures give priority to maintaining social cohesion.
Masculinity vs. Femininity: Represents the allocation of societal duties based on gender. Male-oriented
cultures prioritise aggressiveness and accomplishment, whereas female-oriented cultures prioritise
collaboration and the overall standard of living.
Uncertainty Avoidance refers to the degree to which a society is willing to accept and deal with uncertainty
and ambiguity. Cultures with a high level of uncertainty avoidance have a strong preference for structure
and rules, whereas cultures with a low level of uncertainty avoidance are more accepting of ambiguity.
The distinction between Long-Term Orientation and Short-Term Normative Orientation pertains to the
time perspective of a society. Cultures with a long-term orientation prioritise future benefits and rewards,
whereas cultures with a short-term orientation emphasise current outcomes and traditional practices.
Indulgence versus restraint refers to the degree to which individuals exert control over their desires and
impulses. Indulgent cultures permit the satisfaction of impulses, whereas restrained cultures advocate for
stringent regulation of fulfilment.
Comprehending these aspects can assist managers in customising their strategy for cultural assimilation,
tackling distinct obstacles presented by each aspect.

Globalisation, which refers to the heightened interconnectedness and interdependence among nations,
significantly influences organisational behaviour. This influence encompasses diverse facets, encompassing
gender norms, religious practices, and interpersonal exchange.

Gender Roles: Globalization has enabled the creation of a workforce that is more encompassing and varied.
Organisations are increasingly acknowledging the significance of gender diversity and are making efforts
to establish inclusive cultures that foster gender equality. Nevertheless, gender norms persist firmly
entrenched inside cultural contexts. Managers must skillfully handle these disparities, promoting
inclusiveness while also showing respect for local customs.
Religious Observances: Religious diversity plays a crucial role in the process of globalisation. Organisations
that operate in several regions must make adjustments to accommodate the unique religious practices of
their employees. This involves showing respect for their beliefs and creating a work atmosphere that is
supportive of their religious observances. Adapting laws and practices to accommodate a wide range of
religious activities relies on the crucial aspect of flexibility.
Communication: The process of effective cross-cultural communication has become more significant due to
globalisation. A sophisticated approach is required due to the many communication styles, preferences,
and language difficulties. Utilising multilingual communication, providing cross-cultural training, and
encouraging open dialogue are essential tactics for cultivating good communication in globalised
organisations.
Conclusion: To conclude, managers encounter complex and diverse problems when attempting to transfer
organisational culture across different countries. Hofstede's cultural aspects offer a structured approach to
comprehending and effectively dealing with these difficulties. Moreover, globalisation has a significant
effect on organisational behaviour, namely in terms of shaping gender roles, religious observances, and
communication habits. Proficient global managers must possess the skills to adjust to different
organisational cultures, utilise cultural intelligence effectively, and cultivate an inclusive and respectful
atmosphere that goes beyond national boundaries. In the global corporate landscape, sustainable success
relies on the ability of organisations to effectively negotiate the intricacies of an interconnected world.

Task 3: Marks (40%)

How is the global market changing and what are the implications for industry and investors? Discuss the
emerging markets, eroding economic borders, the shifting focus of labour, and the expanding role of
technology in the global market.

The worldwide market is currently experiencing significant changes, influenced by a combination of forces
that are altering the way industries function and investors plan their actions. The transformation is being
driven by important phenomena such as emerging markets, the erosion of economic borders, the changing
focus of labour, and the increasing influence of technology. This essay will thoroughly examine each of
these features, investigating their consequences for both industry and investors.

Emerging economies: A notable transformation in the global market is the ascent of emerging economies as
prominent participants in the global economy. Asia, Africa, and South America are currently undergoing
significant economic expansion, which is drawing heightened interest from investors and enterprises. This
transition brings both difficulties and possibilities.

Consequences:

Market expansion enables industries to access untapped consumer bases and diverse markets, hence
creating prospects for growth.
Rising Competition: As local rivals develop, industries must adjust to intensified competition and
comprehend local intricacies. Investor diversification is the inclusion of developing market assets in
portfolios, which helps to balance the trade-off between risk and possible rewards. The dissolution of
economic borders has been facilitated by advancements in communication, transportation, and trade
agreements. The increasing interconnectedness of the world facilitates the smooth movement of products,
services, and capital between different locations.

Supply chain resilience is crucial for industries to evaluate and enhance their supply chains to withstand
challenges in a globalised setting. Market accessibility enables investors to access a wider array of
investment options, but it also requires them to navigate through heightened complexity. (1) Policy
Challenges: Policymakers face the dilemma of requiring international collaboration to tackle global
challenges, such as climate change and public health. (2) Labour Reallocation: The conventional hubs of
employment are undergoing transformation, characterised by a significant transition towards positions
that rely on information and technology. The global labour landscape is being transformed by automation,
artificial intelligence, and remote work technologies.
Skill Demand: Industries must adjust to a growing need for proficient workers with advanced technology
skills. Companies have the opportunity to access a worldwide pool of skilled individuals, which allows for
remote work and the formation of different teams. Concerns about labour displacement arise due to the
shift, which presents challenges regarding job displacement in specific industries. This situation requires
the need for reskilling and workforce adaptation. The role of technology is expanding as it takes a leading
position in the evolving global market. The rapid expansion of digital technology, data analytics, and
artificial intelligence is fundamentally transforming sectors and reshaping business structures. Industries
must give top priority to innovation in order to maintain competitiveness, by cultivating a culture that
emphasises ongoing development.
Investment Opportunities: Investors should examine prospects in technology-driven sectors,
acknowledging the revolutionary potential of technological breakthroughs.
Digital Inclusion: Policymakers must prioritise addressing problems with digital inclusion, guaranteeing
that the advantages are widely distributed and not limited to specific regions.
Conclusion: The global market landscape is always evolving due to the interaction of new economies, the
erosion of economic borders, the altering dynamics of labour, and technological improvements. Industries
must possess agility, inventiveness, and a profound comprehension of global dynamics in order to respond
to these changes. Investors, however, need to negotiate the intricacies and capitalise on opportunities given
by an increasingly interconnected and technologically sophisticated globe.

In order to achieve sustainable growth, it is imperative for both sector leaders and investors to promote
collaboration, embrace diversity, and utilise technology. The ramifications of these shifts transcend
individual industries or regions, influencing the overall trajectory of the global economy. Amidst this
dynamic environment, the crucial factor for industry participants and investors striving for success in the
constantly shifting global market is their capacity to adjust, create new ideas, and take advantage of
favourable circumstances.

Ref

Bibliography
Markgraf, B. (2023, 12 8). Major Trends in International Business. Retrieved from chrone:
https://smallbusiness.chron.com/major-trends-international-business-60529.html

Katerina, R., & Aneta, R. (2014). The Impact of Globalization on the Business. CONFERENCE PAPER, 83-89.
Retrieved from https://core.ac.uk/download/pdf/33812244.pdf

Ahi, A. (2019). Advanced technologies and international business: A multidisciplinary analysis of the
literature. International Business Review, 29-89.