Discuss about the International Business for Environmental and Economic Impacts.
The international business focuses on conducting the business on the international level so that growth can be achieved in a proper way. It is related to the trade of goods, services and also technology at the global level. In this, there are cross-border transactions of products and services between two or more countries. The transactions of the economic resources focus on the capital, skills and also on the individuals. International business takes into consideration the commercial activities that can help to promote the transfer of the goods, services and also the technologies across the boundaries on the national level. International business takes place in various formats like the movement of products from one country to another and also the contractual agreement that focuses on the foreign firms to consider the products and services from other nations (Buckley, Burton & Mirza, 2016).
The international business focuses on considering the effects on the activities which take place on domestic, international and government platform. It has been evaluated that there are many companies who earn profits by focusing on the international business. In global locations, the transactions are involved which help the company to conduct the activities in the right way.
It has been evaluated that companies can enhance their market share by focusing on conducting the activities or the operations on the international level. International business can only take place when a company decides to outsource to the activities of the company on the international platform. If the company conducts activities on the international level one of the benefits is related to the national economy (Epstein, 2018). It is essential to consider the imports of the industrial requirement and also this helps to give loans for industrial development. It has also been evaluated that if the business is conducting the operations on the international level then it can be simple to face the level of competition. International business has a connection with trade and also with the investment activities that are done by the entities across the national borders (Deresky, 2017).
In simple language, it can be stated that any business that conducts the activities in more than one country can be called as an international business. The companies can assemble, acquire, market and produce the activities on the international scale (Piekkari, Welch & Welch, 2014). There are also business companies that are engaged in proper collaborations with the business partners who are from different countries. Through international business, it can be simple for the companies to achieve goals and objectives. It has been evaluated that through international business the company focuses or have the aim of attaining profits (Brannen, Piekkari & Tietze, 2017).
Nestle is one of the largest food and drink company and it has been seen that the company is popular on an international level as well. Nestle is a type of food processing industry and was founded in 1866. The founder of the company was Henri Nestle and headquarter of the company is in Vevey, Vaud, Switzerland. There are many products of the company like Maggi, Nescafe, and Nestea that are sold in the market. Nestle apart from its product considers 52% of shares of Alcon Inc and almost 30% of the cosmetic products. The company also introduced various products of the daily utilization like Nestle Milk and also Nestle Slim Milk. The brand of the company focuses on the milk products and on chocolates.
It has been analyzed that nestle the first customer was the premature infant who was not able to tolerate any type of other substitutes. There are more than 2000 brands in 191 countries and the company has more than 33,000 employees who are conducting their routine activities in the organization (Li, 2015). Nestle came in 1905 when Anglo-Swiss Milk company and Farine Lactee Henri. The company sells products like baby food, medical food, ice cream, and confectionary. It has been evaluated that there are twenty-nine major brands of the company who have the annual sales of $1.1 Billion. The mission company is related to “Good Food, Good Life” (Galalae & George, 2017). It focuses on offering customers with good taste and it has been analyzed that the company emphasizes on offering good quality products so that growth can be achieved in the market. The factories of the company are in more than 80 countries. There are many competitors of the company like Unilever, Kraft goods, Mars and Heinz.
Nestle is one of the largest company who focuses on maintaining proper relations with the customers and also try to maximize the customer satisfaction by providing products of good quality. In recent times there are various issues that are faced by the people but it was also reduced by maintaining proper quality. The issue was related with the quality of Maggi and company tries their best to attract the customer towards the product again by giving the quality assurance. Maggi is one of the popular product all over the world and now again product has achieved growth in the market (Pandey & Puntambekar, 2016).
There are various challenges that are faced by the Nestle Company when they are doing the business on the international level.
The first challenge is related to the legal issues. When the activities are conducted in another country it is important for the company to follow rules and regulations. It has been evaluated that the same issues are faced by the nestle when they enter into the new market. By having complex rules and policies the company has to face the issue in expanding the market share. For instance: If nestle enters into the Australian market the issues that are faced are related to the policies and procedures that they have to consider (Ramesh, 2018).
The company has to face problems related to different subsidiaries and also with the marketing and governing policies. To conduct the activities and to market the products it is important for the company to focus on the policies given by the government. It has been analyzed that if the company wants to achieve success it is important to consider each and every regulation so that the operations can take place in the right manner. In China also the company face the challenge in relation to market the products. It has been analyzed that sale in the market was reduced by 7.4% just because of the currency impact (Jia, Gosling & Witzel, 2017). This is considered as one of the major issues which is faced by the company at the time of entering into the international market.
There are also the challenges that are faced by the company in the present scenario related to climate change. Climate changes are also related with the Supply challenges in which focus is given on the products and services in the market. Like in the present situation it has been analyzed that climate change is affecting the European food sector and the risk is concerned with the supplies of the agricultural raw materials. Every country has a different climate so it has been seen that the company faces the issues to market the product by focusing on the climate. The distribution and the supply chain of the products can be the serious challenges that are faced by the company in the European market (Bulkeley & Newell, 2015). If the products are not supplied then it can be difficult for the company to survive in the competitive market. So, one of the challenges faced by the company is related to the climate change and difficulty in supplying the products. To reduce these types of the issue the company is now focusing on the GHG emissions which are related to the greenhouse gas. It has been analyzed that the company designs the products that can assist the customers to reduce their GHG emissions and also it brings improvisation in the resilience to climate change (Shenkar, Luo & Chi, 2014).
For instance: In Europe, the company focused on introducing proper ice cream freezers so that products quality can be maintained and also it will reduce the negative effect on the ozone layer have no global warming effects (Kolk, 2015). Due to climate change, the company also faced the challenges in maintaining the quality and also in enhancing the customer’s satisfaction. In the present situation, it has been analyzed that environmental risks related to climate change is enhancing and also the rate of sustainability is high in many companies (Picciotto, 2017).
There are many international legislation and proposals like the UN’s sustainable goals that have considered the environmental issues. So, Nestle also faced the issue in context of safeguarding the environment and minimizing the environmental issues. To minimize the issue or the challenge the company focused on considering these methods that can help focus on the quality of the products and can also maximize the satisfaction level of the customers (Rezaeegiglo, Sadouni, Aref, Khotbesara & Eslam, 2014).
In many countries nestle also faced the issue related to the supply chain complexity. At the time of sourcing, the products and services from the overseas the company face the challenge in managing the suppliers and also the supply chains. Nestle also faced the issue with the ethical practices and also with the unethical activities. The major risk which the company faces at the time of conducting the activities of the company is related to the worker exploitation and also with the forced labor (Forsgren & Johanson, 2014).
Like in 2015, the UK focused on the Modern Slavery act in context of the hidden human rights violation. The company has to consider all these acts so that awareness can be raised and activities can be conducted in the right direction. Nestle also faced the issue of child labor in many countries like in India. Nestle focuses on reducing the child labor but in many countries, there are companies who are considering the child labor as an ethical act. So, it misleads the entire activities of the companies and due to this adverse effect can also be analyzed in the activities of the company.
Communication plays a great role in conducting the activities of the company. It has been analyzed that it is important for the company to focus on the communication process so that the marketing of the products can be easy. Through communication, only the company can easily introduce the product and can induce the customers to purchase the products. Nestle has also faced the issue related to communication. When Maggi was boycotted just because of the issue in the quality the company faced the challenge related to communication. In this, there are not able to communicate their issue in a proper manner in many countries like in India. There are also challenges that are related to the culture and the mindset of the people. In many countries, the challenge which is faced by the company is related to the analyzing the taste and preference of the customers.
When a company focuses on moving their operations in the international market it is important to focus on the culture of the people. So, many times the company is not able to analyze the demand of the customers (Morschett, Schramm-Klein & Zentes, 2015). The process of analyzing the customer demand and preference takes time. Also, in many countries, the people follow different culture and tradition and to achieve success the company has to focus on those concepts. Good communication is considered as the heart of effective international business strategy and to communicate on the global basis is considered as the real challenge for the company. Nestle face the issue n context to the difficult language and culture considered in different countries (Tenzer, Terjesen & Harzing, 2017). It has been analyzed that demand of the customers is different in every country so at the time of introducing the product in the market the company has to face the issue related with the preferences of the customers. Also, it takes times to communicate the demand of the customers and considering the product that enhances the satisfaction level of the customers (Jackson & Sørensen, 2016).
It has been seen that human resource management of the organization has an essential role in managing the operations of the company. Without human resource, it is not possible for the company to conduct the activities in the right direction. Also, human resources are considered as an assist of the company without them success cannot be achieved in the market. Nestle has a wide number of employees who are conducting their operations (Young & Ghoshal, 2016). It has been seen that when the company enters into the market the challenge is faced in context to the human resources. The HR has to face challenges in hiring the employees for the company. Gender problem is also one of the major issues which are faced by the company. In South Korea, it has been analyzed that only 60 percent of the women are not working due to social pressure (Kolk, 2016).
Therefore, it is considered as the barrier for the company to recruit the female employees. In this, it has also been seen that senior-level positions are also filled by the male so when a company wants to appoint a female candidate for a specific job post then it can be difficult to hire them (Crane & Matten, 2016). The hiring process is very challenging in many countries so it has been analyzed that the company has faced the same issue.
Nestle consider the strategies to recruit the employees in the company. Like focus is given on the latest technologies like social media. But it has been analyzed that the company faces the challenges to align the strategies which are considered with the goals of the business. On social media, it is not easy for the company to focus on the strategies with the goals of the business. In many cases, the company faces the challenge to introduce the products on the social media sites. Nestle also faced the issue of failure and the product like Nesfluid is failed just because of the ineffective marketing strategies. In this, the product is not able to meet the expectation level of the customers (Kuikka & Äkkinen, 2011).
It has been seen that to achieve success it is important for the company to meet the demand of the customers so that growth can take place in the right manner. It is important for the company to reduce the issues so that growth can be achieved. Various strategies should be considered by the company like proper social media marketing so that views and opinion of the customers can be evaluated and also growth can be achieved easily (Kietzmann, Hermkens, McCarthy & Silvestre, 2011). To recruit right talent is also the challenge for the company when they focus on conducting the activities on the international level. Therefore, through this, it has been concluded that the company faces the challenges related to the hiring of the employees.
The political issue is also one the challenge for the Nestle company to conduct the activities in a proper way. To operate the activities on the international platform the risk is involved which is related to the political uncertainty and instability. The company faces an issue related to the corrupt practices that take place in the market. Due to corrupt practices, the company has to suffer a huge loss and also for them it is difficult to conduct the operations in the right manner. When Nestle try to conduct the activities in the international platform the change in the policies of the government affected the growth (Birkinshaw, 2016). The change in the interest rates, rules and regulations have given an adverse effect on the business environment. Economic nationalism is also one of the factors that are giving effect on the international operations of the company. In China many things are banned like the content on the internet should be according to the government rules and regulations (Picciotto & Mayne, 2016). No company is allowed to post anything against the rules of the company.
Due to political effect, the company has also faced the issue of loss which has given direct impact on the routine activities of the company. Therefore, nestle should focus on the rules and regulations and should also monitor the political development before entering into the international market. It is essential to consider the rules so that growth and success can be achieved in a proper way (Neelankavil, 2015).
Conclusion
By analyzing the report, it has been concluded that Nestle faced many issues related to legal issues, climate change, hiring and managing the workforce, the pattern of communication and political issues. It is important for the company to focus on the rules and regulations so that it can be easy to minimize the challenges. When the challenges of the company enhance it has been seen that profits of the company reduce. So, it is important for the company to focus on minimizing the challenges so that growth can be achieved. Effective use of strategies should be considered so that it can be simple to achieve growth and to sustain in the competitive environment.
To conduct the activities in the international market it is important for the company to focus on proper rules and regulations so that it can be simple to attain success and achieve growth in context to the goals and objectives of the company. Proper warehouses should be developed by the company so that the challenge related to climate change can be reduced. Also, the rules and regulations should be considered before entering into the market so that proper planning can be considered at the time of conducting the operations of the company. To recruit the right talent, it is important for Nestle to focus on the strategies like training and advertisement according to the policies of the government so that it can be simple to conduct the activities to achieve success.
Therefore, it has been concluded these recommendations should be considered by the company so that growth can be achieved in the market and in the right direction. Nestle should focus on considering effective strategies so that success can be achieved in the international market.
References
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