Global Business in Context Case Study

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Critically evaluate the changing nature of the global landscape in 2023 for international business

In accordance with the views of McIntyre, et. al. (2022) Global business is the performance of commercial operations on a worldwide scale, including the transfer of investment, products, and services beyond national boundaries. Multinational firms are involved, as well as negotiating various markets, currency, and regulatory frameworks. Global company takes use of chances for resources diversification, market expansion, and market optimization while overcoming obstacles including cultural disparities, geopolitical difficulties, and economic swings. However, Deresky, (2000) said that Globalization, technological advances, and changing consumer pReferences have molded it; therefore adaptation and strategic planning are necessary to win in the highly competitive global marketplace. In 2023, the globe has been in a constant state of change, creating a challenging and dynamic business climate.

TAMER, et. al. (2019). assessed there have been substantial changes in the global economic environment. The historic supremacy of Western economies is being challenged by developing nations whose impact is continuing to expand. This change has an impact on global business since organizations need to adjust to shifting customer tastes, laws and supply chain characteristics in these developing areas; furthermore the COVID 19 epidemic has altered global trade patterns, emphasizing the necessity for firms to improve their capacity for resilience and flexibility in the face of disruptions to the economy. For instance, Unilever is aware of the expanding significance of developing nations like India. The company's efforts to enter these regions, where the growing middle class constitutes a sizable consumer base, have increased in 2023. The growth and investment made by Unilever in these areas are a reflection of its strategic reaction to the transfer of economic dominance forms the West towards the east.

McIntyre, et. al. (2022) defined International Company activities are being impacted by geopolitical concerns and trade disagreements. Changing their supply chains, comprehending trade laws, and being ready for abrupt governmental changes that may have an impact on their operations are all necessary strategies for international enterprises to overcome these geopolitical problems

Collinson, et. al. (2020) mentioned in their study that businesses and consumer habits are changing quickly because to technology. The way businesses function and engage with their consumers is evolving as a result of automation, artificial intelligence, as well as the Internet of Things. Companies that reject the rise of technology run the danger of falling behind rivals. International enterprises must, on the critical note, Patel and Salih (2022) said that confront ethical and legal issues including data protection and cybersecurity as they manage this technologically advanced environment. The fast changing digital environment has an effect on consumer behavior and preferences. For example, to remain competitive, Unilever has made significant investments in digital marketing and e-commerce. The company's cooperation with online retailers like Alibaba and Amazon beginning in 2023 demonstrates its dedication to interacting with customers through online mediums and adjusting to shifting consumer purchasing patterns.

Deresky (2000) described customers, governments, as well as investors are placing increasing importance on environmental sustainability. Global businesses are under pressure to embrace environmentally friendly practices, cut carbon emissions, and lessen their impact on the environment. Failure to deal with these issues may result in reputational harm and legal repercussions. However, Huovinen (2021) argued that Companies that proactively integrate sustainability into their plans may both reduce risks and take advantage of possibilities in the expanding market for green goods and services. For example, Unilever has established challenging climate goals. The business wants to operate carbon-positively by 2039. In 2023, Unilever's attempts to cut carbon emissions will be in keeping with the international movement for climate change. Examples include switching to sources of clean energy and developing sustainable agriculture practices.

Wild and Wild (2019) defined international business strategies are being influenced by societal changes, including changing customer tastes and altering demographics. For instance, possibilities in healthcare and elder care services are being created by the ageing populations in many wealthy nations. In addition, shifting consumer attitudes towards diversity, inclusiveness, and social responsibility are influencing brand loyalty and customer image. To be profitable and relevant, international enterprises must adjust to these societal shifts.

Patel and Salih (2022) mentioned in their study that global supply networks become more vulnerable as a result of the COVID-19 epidemic. Lockdowns, limitations on travel, and a lack of essential components caused difficulties for international enterprises. On the contradictory note, Huovinen (2021) defined that to improve tracking and visibility in their supply chains, businesses are reconsidering their supply chain strategy, adopting outsourcing or relocation, and putting money into digital technologies like blockchain. Like a lot of international firms, Unilever deals with difficulties brought on by geopolitical conflicts. Global supply networks, for instance, can be disrupted by trade conflicts and taxes. In an effort to reduce possible risks, Unilever has deliberately diversified its supply chain and production processes. To lessen risk to trade disputes, specific markets may localize manufacturing.

According to the views of expenses Huovinen, (2021) the regulatory framework in which international enterprises engage is getting more and more complicated. Different countries have different tax rules, trade agreements, and data protection legislation. Legal knowledge and resource-intensive compliance efforts are needed to navigate this regulatory maze. Regulator non-compliance may have legal and financial repercussions. For example, When adopting GDPR compliance methods for processing consumer data, Unilever encountered legal intricacy in the European Union, illustrative of the difficulties experienced by multinational corporations negotiating various data protection rules.

Patel and Salih (2022) stated that the COVID-19 pandemic has elevated safety and health to the top of the priority list for global corporate activities. To safeguard both its staff and consumers, businesses must maintain stringent safety and health procedures. Businesses must combine safety concerns with preserving operational effectiveness because these measures might have an impact on production, logistics, and operating. However, Collinson, et. al. (2020) that Consumer tastes have been shifting in the past few years in favor of health and wellbeing. By purchasing businesses that fit these tendencies, for instance, Unilever has adjusted to this transformation. For instance, Unilever's goal to meet changing customer preferences may be seen in the purchase of health-focused businesses like The Vegetarian Butchers as well as OLLY Nutrition.

For example, the way Unilever handled the COVID-19 epidemic is an excellent example of flexibility in a global setting. During the global epidemic, the firm changed the focus of its production to put an emphasis on necessities like hand sanitizer. Unilever was able to address customer wants and sustain its market position despite the crisis because to this quick response. The company's commitment to sustainability, attention to emerging economies, its digital transformation, its reaction to international conflicts, consumer preference adaptation, crisis resilience, and commitment to climate action are all examples of how it has managed to stay afloat in the complex waters of the ever-evolving global business climate. The strategy employed by Unilever acts as an example for large companies may prosper and stay competitive in the ever evolving global economy.

Discuss presents challenges and opportunities for an industry

Sitkin and Mangion-Thornley (2020) examined the term "international business" describes financial deals that take place between people, businesses, or governments outside of their own country. It covers a range of topics, such as global trade in products, services, investments, and information. The multifaceted environment, including agreements on trade, cultural diversity, stability in politics, and economic conditions, governs how international commerce is conducted. It brings potential for access to resources, market development, and diversifying but also difficulties like regulatory compliance, currency swings, and cultural differences. International commerce and collaboration are promoted by international business, which is crucial for economic expansion and progress in a linked world.

Wild and Wild, (2019) defined in 2023, consumer products firms like Unilever will operate in a dynamic global environment that is full of both challenges and opportunities. Sustainability brings both opportunities and formidable obstacles. By halving its usage of virgin plastic through 2025 as well as attaining net-zero carbon emissions from all of its goods by 2039, Unilever has pledged to lessen its environmental impact. Such lofty sustainability objectives call for substantial expenditures in development, research, and environmentally friendly material procurement. For instance, switching from conventional plastic packaging towards more environmentally friendly substitutes like reused plastic or biodegradable ones might be more costly and technically difficult. On the critical note, Duska (2022)said that Unilever is a market leader within the consumer products sector thanks to its dedication to sustainability. This not only reflects changing customer tastes, but it also makes it possible to interact and collaborate. For instance, Unilever may get funding and assistance for its sustainability projects by collaborating with environmental organizations and governments. The business's "Sustainable Living Brands" have not just considerate of the environment but also frequently exceed other brands in its portfolio, proving the viability of sustainability from a commercial perspective.

Sitkin and Mangion-Thornley (2020) described consumer goods corporations like Unilever suffer market saturation across numerous developed nations. Keeping market share is difficult in this situation, but so is finding new growth prospects. Unilever's solution to this problem has been to enter new areas like Africa and India. Although these markets have unexplored customer bases, they also have their own unique set of difficulties, such as cultural disparities, legal difficulties, and infrastructure constraints. However, Duska, (2022)argued that consumer products companies have a tone of opportunity in emerging markets. Unilever has benefited from its strategic focus on developing nations, which it has spent in localizing and making its products more affordable. Hindustan Unilever limited (HUL), the company’s Indian affiliate, provides a variety of commodities tailored to regional tastes and price ranges, enabling it to keep an advantageous position within the Indian consumer goods industry.

Nambisan and Luo (2022) identified in their study that Traditional consumer goods company models have been affected by the quick emergence of digital marketing and e-commerce. By making investments in digital technology and creating alliances with industry titans like Amazon, Unilever is overcoming this issue. On the contradictory note, Sitkin and Mangion-Thornley (2020) defined that the transition to e-commerce requires changes in both distribution and marketing approaches in addition to technology expenditures. The business must adjust to consumers' shifting demands for digital interaction and online purchase. Nevertheless, the digital revolution gives manufacturers of consumer products new possibilities to interact with their clients. Unilever is utilizing data analytics to comprehend customer behavior and preferences in order to take advantage of this potential. The business may more effectively customize its marketing plans through internet marketing and social networking efforts. The success of Unilever's "Dove Real Beauty Sketches" campaign, for example, on YouTube serves as an example of the effectiveness of digital marketing in attracting a large audience.

Duska (2022) ascertained the fact that supply chains can be broken, commerce might be affected, and uncertainty can be introduced by geopolitical conflicts. For instance, disputes over trade and tariff regulations resulted from the U.S.-China trade war. Unilever has altered its supply chain processes to reduce these risks, but doing so has increased expenses. Geopolitical conflicts can also impact customer choices and attitude, which makes it challenging for businesses to make plans for the future. On the critical note, Sitkin and Mangion-Thornley (2020) said that The COVID-19 epidemics highlighted the value of adaptability in the consumer products sector. Unilever's resilience was demonstrated by its ability to swiftly adjust to fluctuating consumer needs by moving manufacturing to necessities like hand sanitizer during the epidemic. The organization can take advantage of possibilities even during times of crisis because to its agility, which improves its reputation and competitive edge.

Duska, (2022) defined Along with contributing to meeting client demands, Unilever's aim to become carbon-positive and minimizing environmental effect also encourages innovation. Sustainable packaging supplies and environmentally friendly product formulations may result in innovations that are good for the business and the environment. Additionally, people are becoming more prepared to pay more for goods that are ecologically friendly, opening up markets for environmentally friendly product categories. On the contradictory note, Sitkin and Mangion-Thornley (2020) defined that while resiliency building, sustainability, new markets, and digital engagement provide opportunities for development and uniqueness, they also have their own set of challenges and costs. A proactive and calculated strategy is necessary to navigate these difficulties and seize these chances. Unilever's dedication to sustainability, foray into emerging markets, and adoption of new technologies, and flexibility in times of crisis serve as practical illustrations of how the consumer products giant can prosper in the rapidly evolving global market by effectively dealing with these difficulties and seizing these opportunities.

REFERENCES

Books and Journals

• Collinson, S., Narula, R., Qamar, A. and Rugman, A.M., 2020. International business. Pearson UK.
• Deresky, H., 2000. International management: Managing across borders and cultures. Pearson Education India.
• Duska, R., 2022. Patricia Werhane and Adam Smith, with Side Comments on Aesthetics and Wittgenstein. In Contemporary Reflections on Business Ethics (pp. 165-177). Cham: Springer International Publishing.
• Huovinen, A. 2021. Organisational Identity Audit: Aligning Vision, Culture and Image of a Finnish Digi-tal Innovation Hub.
• McIntyre, J.R., Ivanaj, S. and Ivanaj, V. eds., 2022. The Role of Multinational Enterprises in Supporting the United Nations' SDGs. Edward Elgar Publishing.
• Nambisan, S. and Luo, Y., 2022. The digital multinational: Navigating the new normal in global business. MIT Press.
• Patel, T. and Salih, A.M. eds., 2022. Cultural Spaces in International Business: Theories and Applications. Routledge.
• Sitkin, A. and Mangion-Thornley, K., 2020. Absolute essentials of international business. Routledge.
• TAMER, S., CAVUSGIL, K. and RIESENBERGER, G., 2019. INTERNATIONAL BUSINESS: The New Realities Plus Pearson Mylab Management with Pearson Etext,... Global Edition. PEARSON EDUCATION Limited.
• Wild, J.J. and Wild, K.L., 2019. International business: The challenges of globalization. Pearson.