Analysing the Global Business Environment Assignment

Assignment Task

The challenge of strategic management is to understand complex issues facing organisations and develop the capability for long-term organisational success. The aim of this section is to develop the reader's knowledge of the need and means to align the organization with its environment so its resources can be developed and deployed to meet its goals.

The overall aim of the book (Kelly 2009) is to ensure the international organisation has the resources and competencies (dynamic capabilities) to survive and prosper in an uncertain and constantly changing world. To survive and prosper an organisation needs to address the challenges it faces from the environment. In particular it must be capable of delivering against the critical success factors that arise from demands and needs of its customers. The strategic capability to do so is dependent on international organisational resources, competencies and capabilities.

International organisations are resource systems continuously interacting with their environment a source of opportunity, threat and constraint. The environment provides the organisation with a purpose, and shapes its mission and goals. It governs what the organisation will do (activities) and how it will do it. An understanding of both external and internal environments (chapter 1), the requirements of significant stakeholders and the preferences and senior decision-makers shape the organisational strategy where and how to compete, and the identification and application of required resources. In chapter two we consider how strategy is developed and implemented. The chapter (international and global strategy) seeks to answer fundamental questions such as: in which markets and geographical areas will we compete, how will we compete and what resources and capabilities do we require. Strategy is concerned with how the international organisation achieves its aims and goals. Stakeholders, other than investors, must be considered when formulating strategy and conducting business activities. In chapter three we consider how organisations can behave responsibly when operating worldwide. Once strategy has been formed or strategic decisions made, changes must take place. Change is necessary in a dynamic environment and various theories of change are explored in chapter four. We explore what can be changed and how the international Organisation can accomplish change. Finally, in chapter five we recognise the role of leaders and managers in strategy, ethical and change management and resources are used. Whereas some organizations see their role solely in terms of maximising shareholder wealth, others may take a wider perspective and will consider a broader set of stakeholders when making business decisions, they may strive to create shared value for society. We can understand a great deal about organizations from an understanding of their basic assumptions.

Later in chapter 1 we distinguish between international business and international management and the associated strategic perspectives of market positioning and the resource based view. Assumptions about how best to compete and win business to choose where best to compete or what best to compete with impact upon strategy, resource allocation and utilisation decisions. Finally, we conclude this part of the book with arguments about what should be studied in the field of international business and management and discuss why this particular coverage is appropriate. Overall, part 1 sets the scene for subsequent parts of the book.

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