Master global business analysis with Hamilton & Parkar case study. Explore Unit 25 assignment sample for cost/market/competition strategic insights
Global business environment refers to the term utilised to explain the challenges along with the opportunities which organisations experience when operating within an international marketplace. It shows the interrelation of every part of the world that means what occurs in the one country has an influence on other countries. Hamilton & Parkar, a management consultancy firm which has headquarters in UK, Ireland, Paris and South Asia, has been selected. Students seeking help with writing assignments can analyze the major factors related to cost, market, environment along with the competition which are helpful in driving the international commerce and trade, plus strategic challenges faced by the company while operating global environment. This report will explain about the different major factors related to cost, market, environment along with the competition which are helpful in driving the international commerce and trade. Strategic challenges faced by the company while operating global environment will be also analysed in this report.
Globalisation is a kind of extensive network of social, political, cultural and economic interlinks as well as procedures which are inking the individuals in all over the world. Hamilton & Parkar which is a management consultancy organisation. UK and Ireland’s headquarters located in the London, South Asian headquarters in India along with European headquarters based in Paris. There are several factors that are helpful to drive the international commerce and business. The detail of each factor is given below: 114
Cost: Cost is one of the major factor that heavily affect the business operations as well as globalisation. Cost drives the economic situation of the country, logistic cost, economies of scale and all other elements associated with the manufacturing and operation management different from region to region. Since, organisations look to lower the costs at the same time maintaining the quality level of products and services. For instance – in the case of Hamilton & Parkar, the company requires to concentrate on cost factor that offering their services to multiple countries (Aharoni, 2024). The economic conditions of the different countries impact the profitability of the company. So, it is analysed that companies that operate globally need to adjust their costs according to the economic conditions.
Market: The characteristics of the international market as well as local market are crucial for the multinational firms like Hamilton & Parkar. The choices, demands and preferences of the consumers rely on different market elements that are needed to be considered from the companies while offering products and services to them. The various market factors impact the Hamilton & Parkar business operations that have increased the competition because of globalisation. For example – McDonald’s is leading fast food chains that adapt to local demands and tastes. Similar to McDonald’s, Hamilton & Parkar also need to focus on market demands of UK, Europe, Ireland and South Asia in which they operate.
Environment: Environment play a major role in global commerce and trade. The environment where the organisations is operate is highly crucial for the company. When the firm pays attention on understanding influence of all external factors before entering into new region can be able to operate their business effectively (Tolstoy, Nordman and Vu, 2022). Environment factor like climate change can disturb the business operations. Hamilton & Parkar should analyse the challenges related to environment of particular nation which will help to choose best country for trade. Global trade provide chance to cater to different people who have different culture and reduce the differences regarding change.
Competition: Global commerce and global trade becomes more efficient and successful by analysing the competition factor. It can be helpful to achieve better position in the global market and competition advantage. Competitive diversity, interdependence as well as high level of trade raise possibility for industry globalisation. As the primary features of industry change, competitors will respond in a way that improve and maintain competitive advantage. It is most important for the Hamilton & Parkar to do research to know about the competitors that can give tough competition to the firm. Competition factor can be useful for the firm to make the appropriate strategies that provide benefits instead of failure. By analysing competition in specific market, a company can tailor its services and set prices of the services that help to attract more customers.
Impact of key elements on business environment in relation with opportunities and challenges
Cost: The cost factor will raise the cost of the investment for the company that can be challenging for the company. On the other hand, cost element can provide opportunity to the firm because of the variation of the cost in different regions. It can help to build the international economies of scale.
Market: Align with Porter’s five forces, the ever-changing situation of the market can facilitate the organisation to obtain the competitive edge as well as make large customer base which are the opportunities for the company. But it also involves challenges for the firm like regular changing market conditions put pressure on the firm to make constant changes in their strategies which is not possible.
Environment: Different factors like culture, technology, political stability and strong economy can help the form to operate business efficiently (Ibn-Mohammed et al, 2021). But in the countries that are facing the economic downturn and political issues can reduce the profitability of the business. Great exposure to global market is another opportunity which can help to increase sales and achieve success and growth in business.
Competition: There are both opportunities and challenges related to the competition factor. Growing competition between global firms is significant challenge for the company that can reduce the sales. While, competition level provides opportunity to the Hamilton & Parkar to lay focus on investing in innovation and offer diverse services to consumers across the world. Competition can encourage the firm to adjust their strategies and offer more valuable consulting services to the clients.
Complexity in business is explained as collection of multidimensional challenges which a firm faces within its business operations. It emerges from different sources like entangled internal processes, emerging technological developments and fluctuating nature of market. The organisations have to concentrates on making effective efficient strategies to overcome the challenges.
Political factors: The multinational companies often face the political problems that impact their business heavily. For example – UK government has changed trade rules because of Brexit which increased pressure on Hamilton & Parkar. Changes in rules make it difficult for the firm to make informed decisions. It is also not easy for the company to predict the future political environment which can affect the long-term goals.
Economic factors: Regular increasing tax rate after Covid-19 pandemic in UK, Europe, South Asia etc. increase the problems for the global firms. For instance – recently, UK has changed its tax rates and announced three rates which are 20%, 40% and 45% respectively (House of Commons, 2024). It creates the pressure on the Hamilton & Parkar to pay extra tax which is challenging for them. Fluctuate exchange rates also impact the decision making process and it also cause the instability in financial markets.
Socio-cultural factors: Strategic complexity also occurs from issues regarding socio-cultural because of lifestyle changes, different customer preferences and corporate social responsibility. Preferences of the customers can alter unpredictably because of raid information flow utilising social media platforms. Moreover, Hamilton & Parkar operates in different countries and each country has different culture. It also make it complex to the firm to operate according to their culture.
Technological factors: Countries accept technical innovations at different levels. It makes the degree of change and effect on company operations vague and source of complexity. For instance – several region limit access to internet services as a mean of controlling information flow because of security reasons (Du and Kim, 2021). But in this case, it is quite complex for the firms to make strategic decisions and choices because of restricted internet access.
Environmental factors: Complexity can be also increased for the firm from environmental issues. Now, government and people are focusing more on the green and sustainable operations because of increasing environmental impact. Environmental activists and agencies forced the companies to implement sustainable practices. If the company does not follow the guidelines and environmental standards then it can harm the reputation and image of the company in global market.
Legal factors: There are different legal rules, regulations and systems in UK, Ireland, Europe and South Asia. Such differences in the legal systems is considered as a source of strategic complexity (Alsheyadi, Baawain and Shaukat, 2024). It is crucial for the firm to comply with the all rules and policies. European law and common law are quite complex and difficult to understand. The companies face the difficulties to comply with these rules which can create legal problems.
Global supply chain complexity: Flow of inputs such as; raw materials and information from suppliers through manufacturing procedure to end customer is multifarious. It is because international supply chains include varied and discrete participants who are hard to handle, coordinate and control. It limits the capability of Hamilton & Parkar managers to make strategic plans and decisions. Thus, international supply chain network is considered as strategic complexity.
SWOT analysis
| Factors | Impact on business operations |
|---|---|
| Strength | The company has global presence that help in managing the profitability. Hamilton & Parkar has good team that helps to meet the changing needs of customers. |
| Weakness | Because the company operates in multiple regions that increased the issues regarding resources which impact global operations. |
| Opportunities | The firm has good knowledge about consultation industry and also has experience in working in foreign countries. The firm can use it as an opportunity to expand business into developing countries. |
| Threats | Regular growing competition in the industry raises the problem for the firm to increase the competitive advantage. Economic recession is another threat that increases the financial challenges by reducing sales. |
Strategic challenges in relation with risk, diversification and supply chain flow
6 Years | PhD
The companies including Hamilton & Parkar that operates globally require to pay attention on handling the different risks in an efficient manner. Various risks related to political, economic, environmental etc. are required to consider. Company like Hamilton & Parkar usually face difficulties to deal with the risks associated to business operations. The firm should focus on identifying risks, evaluate their impact and apply measures to reduce them. Diversification in the goods or services is also important. Through diversifying the service offerings, the company can reduce their reliance on limited services. However, diversification also involves challenges like increased cost and complexity (van Hoek and Dobrzykowski, 2021). A firm need to invest in multiple assets and require extra research, analysis and ongoing management. In terms of supply chain, it is vital for the firm to elevate the supply chain flow. In line with Porter’s five forces analysis, Supply chain issue like labour shortage, high cost, difficult demand prediction and digital transformation can create challenges. These supply chain issues can disrupt the business operations of the Hamilton & Parkar. Because of challenges, the company will be not able to offer diverse consulting services to the global customers. It can reduce their sales and impact their profit margins.
Evaluation of global business environment including opportunities and challenges
Global business environment involves both opportunities and risks and have a great influence on global enterprises. For instance – UK, South Asia etc. have strong economic conditions that provide benefits to the Hamilton & Parkar. Because of good economic conditions, the company can achieve business objectives. But increasing unemployment issues can prevent the customers to buy services which are not useful for them. Globalisation offers the chances to the firm to increase the awareness regarding brand and its services. It provides an opportunity to the business to attract more customers and make large bases of global customers. When the company successfully attract lot of clients and customers then it eventually help the firm to achieve its company goals and objectives. In addition, it will help to achieve growth in the market and they can be able to survive in this dynamic and complex marketplace. By using Porter’s five forces model, customers have power to reduce and increase the sales of the company because of their negotiation power. Customers can choose other company over Hamilton & Parker that can reduce customer base. Though, if the firm is not aware about the cultural differences, diverse needs and latest trends then it can be difficult for the firm to operate. Without enough knowledge about external factors, the company many face problems to manage the people as well as customers.
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Conclusion
As per above analysis, it is concluded that globalisation has made it possible for the organisations to operate both local and global regions. Although, global commerce increases the income sources but it is not easy for the companies to operate in complex global environment. International business involves both challenges and risks and it is important for the firms including Hamilton & Parkar to address the issues while offering consulting services in other countries. Cost, market, environment and competition are four major factors that drive the global commerce and trade. Also, there are different factors such as; political, economic, technological, legal, global supply chain and environmental that create strategic challenges for global business and make it complex to operate globally.
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