Business Organisation In The Globle Context Commerce Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

About Non-Profits-A non-profit organization is a company created for purposes other than earning a profit. Typical non-profit organizations include hospitals, schools, churches, political organizations, public clinics, labor unions, volunteer organizations, museums, research institutes, professional associations and legal aid societies. Most non-profit organizations enjoy tax exemption from the federal government if they exist for the purpose of charity, religion, public safety, science, education, literacy, the development of sports or the prevention of cruelty to animals or children.

Public Non-Profits-Public non-profit organizations obtain most or all of their financial support through donations they receive from the general public. Some of these organizations, such as those that provide services or goods to the needy, may procure funding by holding fundraisers in which they collect small donations from individuals who sympathize with their purpose. Other public non-profits, such as museums, may raise money by offering certain perks in exchange for paid memberships.

Private Non-Profits-Private non-profit organizations receive financial support from only a few sources, such as a dedicated donor or investment income. In some cases, a private non-profit organization may receive a large portion of its funding from the individual who founded the organization. Founders of private non-profit organizations may secure additional funding from other wealthy donors who are interested in furthering the same cause. Private non-profit organizations typically don't solicit funds from the general public.

Considerations-Some public non-profit organizations may receive goods from the public rather than monetary donations. Some states exempt non-profit organizations from tort liability and from paying unemployment insurance taxes, regardless of whether the organization is receiving public or private funding. All federally recognized non-profit organizations are exempt from paying Social Security taxes, but some organizations elect to pay them anyway.

Responsibilities Of Organizations Operating Globally

Leaders can be thinking from all the sub disciplines of management (finance and accounting, strategy and marketing, operations and human and organizational studies) as well as the more fundamental academic disciplines including philosophy, sociology, politics, history and psychology when the business become aunty globally.

Coverage includes, but is not limited to the areas of:

Ethics, New mental models, Governance, Strategy, Public policy, Corporate social responsibility, Human rights, Workplace spirituality, Employee/community engagement, Transparency, Resource management, Environmental impact, Organizational development, Change, Human resource management and development, Social entrepreneurship, Innovation and creativity, Social marketing, Action learning, Management education, Cross cultural management, Organizational change, Leadership theory and leadership development.

Evaluation of Strategies in operating global organizations

By adopting the Global Strategy, the World Heritage Committee wanted to broaden the definition of World Heritage to better reflect the full spectrum of our world's cultural and natural treasures and to provide a comprehensive framework and operational methodology for implementing the World Heritage Convention.

This new vision goes beyond the narrow definitions of heritage and strives to recognize and protect sites that are outstanding demonstrations of human coexistence with the land as well as human interactions, cultural coexistence, spirituality and creative expression. Crucial to the Global Strategy are efforts to encourage countries to become States Parties to the Convention, to prepare Tentative Lists and to prepare nominations of properties from categories and regions currently not well-represented on the World Heritage List.


Since the launching of the Global Strategy, 39 new countries have ratified the World Heritage Convention, many from small Pacific Island States, Eastern Europe, Africa and Arab States.

The number of countries around the globe that have signed the World Heritage Convention in the course of the last ten years has risen from 139 to 178. The number of States Parties who have submitted Tentative Lists complying with the format established by the Committee has grown from 33 to 132. New categories for World Heritage sites have also been promoted, such as the categories of cultural landscapes, itineraries, industrial heritage, deserts, and coastal-marine and small-island sites.

Task-2 The impact of external factors on organizations

Performance of national economy impact on activities of business organization

Global economic analysis studies the interaction of the economies of the world, including the worldwide exchange of goods and services. Global economic analysis focuses on macroeconomic indicators of economic performance, such as Gross National Product, or GNP, which measures the value of a nation's output of goods and services, including gains (or losses) from world trade. Tariffs and other trade barriers have fallen in recent decades as an increasing number of nations have become part of global trade agreements. Meanwhile, technological advances have made it possible for businesses to access new markets and communicate with customers around the world. In this global marketplace, an understanding of global economic analysis is a powerful tool for business success.

Measures taken by government to influence activities of business organization

Governments control the business activities is many ways both direct and indirect. We have already covered government's economic policies. However, government can control business activities in a more direct way. These are as follows:

Controlling what to produce

Employees Protection legislations

Legislations for health and Safety at work:

Protect employees against unfair dismissal 

Ensure fair wages for the employees

Consumer Protection legislations

Environment protection

Location decisions

Businesses are usually profit motivated. Many times in order to gain more profit the business might neglect issues like environmental protection and production of harmful and dangerous products.

Large business might take the advantage of their size and exploit consumers, employees and even use unfair tactics to overcome competition from small businesses. Business might use media to portray a wrong image of their product or may even mislead customers to buy products.


Businesses operate in an external environment in which as well as competition from rivals businesses have to take account of legal, political, social and economic influences.

A SLEPT (Social, Legal, Economic, Political, Technological) analysis is often carried out by business planners which enables them to develop more informed strategies (i.e. long term plans).

Social factors - relate to change is society and social structures. Changes in the structure of the population, and in consumer lifestyles and behavior affect buying patterns.

Legal factors - relate to changes in laws and regulations. Businesses must be careful to keep within the law and to anticipate ways in which changes in laws will affect the way they must behave.

Economic factors - relate to changes in the wider economy. A growing economy provides greater opportunities for businesses to make profits, so businesses welcome rising living standards.

Political factors - relate to ways in which changes in government and government policy can influence business.

Technological factors - provide opportunities for businesses to adopt new breakthroughs, innovations, and inventions to cut costs and develop new products.

Environmental scanning - is the process whereby businesses examine the external environment to identify key structural changes in the world around them which affect demand and supply conditions for their products.

Task-3 The impact of global factors on business organizations

An Explanation Of Implication Of Global Integration On Business

The multinational corporation (MNC), often seen as a primary agent of globalization, is taking on a new form, one that is promising for both business and society. From a business perspective, this new kind of enterprise is best understood as "global" rather than "multinational."

The corporation has evolved constantly during its long history. The MNC of the late twentieth century had little in common with the international firms of a hundred years earlier, and those companies were very different from the great trading enterprises of the 1700s. The type of business organization that is now emerging -- the globally integrated enterprise -- marks just as big a leap.

Effect of international trade on domestic product and service

With the help of modern production techniques, highly advanced transportation systems, transnational corporations, outsourcing of manufacturing and services, and rapid industrialization, the international trade system is growing and spreading very fast.

Foreign trade has become more important to our economy in recent years. Exports and imports of goods and services have grown rapidly. A growing trade volume benefits our standard of living in several ways, but, as the recession deepens, my focus here will be limited to the impact of the trade balance on America's gross domestic product and, by implication, its job market. G.D.P and employment generally move in the same directions; so what I say about the impact on G.D.P generally applies to employment as well.

Impact Of The Global Economy On Businesses

In an attempt to liberalize the economy and attract international funding, many developing countries have bought into the schemes of private equity firms. As the global economic downturn has taken its toll, there are many businesses which have either fallen or have decided to use their business equity in order to obtain funds that keep them afloat. Meanwhile private equity firms have acquired a reputation that is almost as bad as that of investment bankers today. Despite some outcry from the trade unions, many governments have given tax breaks and special privileges to private equity firms.

How ICT Facilitated Globalization

Information and communication technology (ICT) has played a key role in Globalization and integration. It has facilitated the heralding of a "Third Wave", comparable to the First Wave, the Agricultural Revolution and the Second Wave, the Industrial Revolution. The world is shifting from a manufacturing-based industrial economy to a service-dominated and network-based knowledge economy. Trade in services, powered by ICT, is increasing too. The spread of ICT and the Internet are among the most distinguishing features of the new globalizing world. The "World Wide Web", of which the Internet is a prime component, is becoming an epitome of the global society. With its decentralized and interconnected networks spanning the globe, the "Internet" has emerged as a symbol of globalization. The number of Internet users in the world grew 26% between 2001 and 2002. In 2001, 27% of Internet users hailed from developing countries, a figure that rose to 32% of the world's 591 million internet users in 2002. By the year 2008, 50% of the total Internet users could be in developing countries. Particularly significant growth is foreseen for Asia [UNCTD (2004)].


Global business integration is one of the toughest challenges facing any organization. In addition to the organization and drive that would be necessary to bring about structural change in any environment, there are huge differences in language, culture and regulations to overcome. At this time, Impact Executives, with their global reach and superb register of talented interims, can become your most valuable ally.

A highly skilled and experienced specialist interim with experience in global integration is your ideal choice and has the added advantage over an internal appointment in that they are less likely to be seen as biased by any of the parties involved.

Task-4 A Review Of Current Issues Impacting On Business Activities

The Global Environment In Which Businesses In Named Countries

The environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision making on resource use and capabilities. This includes the social, political, economic, regulatory, tax, cultural, legal, and technological environments.

The political environment in a country influences the legislations and government rules and regulations under which a foreign firm operates. The economic environment relates to all the factors that contribute to a country's attractiveness for foreign businesses. Every country in the world follows its own system of law. A foreign company operating in that particular country has to abide with its system of law as long as it is operating in that country.

As firms have no control over the external environment, their success depends upon how well they adapt to the external environment. A firm's ability to design and adjust its internal variables to take advantage of opportunities offered by the external environment, and its ability to control threats posed by the same environment, determine its success.

Strategies Address Issue Affecting Business Activities

Those who have successfully implemented strategic plans have often reported that involving teams at all levels in strategic planning helps to build a shared vision, and increases each individual's motivation to see plans succeed.

Clarity and consistent communication, from mapping desired outcomes to designing performance measures, seem to be essential to success. Successful leaders have often engaged their teams by simply telling the story of their shared vision, and publicly celebrating large and small wins, such as the achievement of milestones. To ensure that the vision is shared, teams need to know that they can test the theory, voice opinions, challenge premises, and suggest alternatives without fear of reprimand.


Thus in the last I may conclude that Future leaders need special skills to successfully meet and manage the challenges of globalised, dynamic markets and competitive environments, while at the same time anchoring their business activities in the local context. Depending on your background, there are a wide range of careers you can pursue after graduation, such as: project leader, change manager, international business developer, head of operations, and CEO.