International business challenges
Introduction
The world is facing issues due to factors such as climate change, accelerating pace of industrial revolution, and geopolitical tensions. These are challenges that are faced by organizations and nations that need to counteract for competitive advantage and secure market share. Due to historic reductions and poverty, the challenges are critical and need to be solved with immediate actions. These are external forces of the business to which social contracts and polarization are on the rise of organizations and countries. Unparallel resources are the major problems and technological advancement plays an integral part in which an organization needs to concentrate on too many secured tools and techniques. New ways to respond to globalization is necessary, which will redouble the efforts of the organization to compete at the international level. New approaches are addressed with a range of issues to which climate change, taxation, and technology are to be considered for renewed commitment. National level competition and organizational security are important for tackling equality in the country and strengthening social protections of the political community.
Renewing and improving the international economic systems is one such strategy that helps in defining tasks. The major aspect of growth is to respond in a manner and consider monumental undertaking with an indispensable way. The stakes are high, and organizations need to focus on the growth of the business while achieving competitive advantage and building momentum to act in a similar kind. Competitive advantage begins with the need to act in a way so that global aspects engage in risks landscapes and ensures warnings for the number of risks in the business. The five challenges that are faced by organizations and nations are economic vulnerabilities, societal strains, geopolitical tensions, technological instabilities, and environmental fragilities. These are the major challenges that are described in the report. The strategies that an organization is putting in place to secure the market and achieve competitive advantage are discussed in detail in the report. Apple is one such organization that faces the challenges of economic vulnerabilities, geopolitical tensions, environmental fragilities, societal strains, and technological instabilities. The following challenges are discussed with the strategic possibilities of the business to achieve organizational goals and achieve a competitive advantage.
Global risks need to be tackled to which organizations and nations should consider the new phase of achieving competitive advantage. The new phase of growth with new systems and centered politics is noted with the idea of controlling the situations and accepting the challenges of business. The idea of considering a supranational organization ensures and resonates issues of the business. The energy of taking back the control and recovering from national control risks is accepted with an emerging global challenge. Businesses are considering global problems and struggling to strive in the economy. The five areas that are concentrated in the perception of the global risk are economic vulnerabilities, societal strains, geopolitical tensions, technological instabilities and environmental fragilities.
Economic vulnerabilities
Economic tensions lead to deteriorating situation of an organization. This leads to international economic environment issues that hinder in growth of the business and in the nations. Increasing risk between the multilateral trading rules and major power have led to economic vulnerabilities of organizations and nations. The macroeconomic fragilities are the real cause and the economic risks that have moved to a financial market volatility has changed the overall situation in the business. The financial market volatility has increased to an extent to which global economic risks are analyzed in the business. the rate of growth appears to forecast in the business to which a gradual slowdown in the organization is addressed. The rate of global growth is peaked and the gradual slowdown of the economy decelerates the economy. However, it is important to develop the economies and ensure projections that will help in growth and provide source of concern to organizations. There is high level of indebtedness that is one of the specific reason towards financial vulnerabilities that is highlighted drastically. The concern is about global debt and the burden that the organization face in the economy. The global debt being significant higher tends to provide financial crisis and ensures systematic and significant financial sector. The concern of GDP being lower increased the debt burden of the economy. This situation highly disturbs an organization to which response rate is largely intolerable.
The rate of inequality is the factor that is present in economic vulnerabilities of the business. This is an important driver that need to be controlled in the global risks landscape. With the rising income, the wealth distribution has even shattered and wealth disparity is observed with underlying risk and trends in the economy. The global inequality has dipped its roots in the country and so does it affect the business. The rate of inequality continues to rise as it affects economic disturbance that creates an opportunity. The major attributes are considered and continue to rise in the business while attributing towards economic inequality concern and widening divergence of private and public ownership. The transfer of public to private wealth has provided countries to emerge in a way and attract private sectors. National wealth has increased to a certain level and public wealth aspects are to be considered to be ineffective recently. With political polarization the problem of inequality erodes in a country and affects the country and organization. This is considerably the major concern that economic performance decreases and organizational growth is hindered. Inequality in the nation creates situation that are not handled adequately. Per capita income of the country leads to increase the level of trust among citizens and the purchase behavior is affected. An overall growth of the country, economic stability, economic equality, economic condition and economic performance are the critical factors that affects the business.
Strategies
Economic factors affect the economy and condition of the business. For example inflation rate, interest rate, import and export policies are the major aspects that affect the foreign exchange rate. These aspects determine the direction of the economy and analyze economic factors that affect the business. Economic stability helps an organization to focus on growth and success rate. One such example that is discussed here is Apple’s response to economic vulnerabilities that it faces and recovers with the business strategies. Apple felt the economic risk when the advanced economies like Europe and the America had faced global recession and are recovering from the situation. The growth of the economy leads to a major situation in which the crisis level were affected in the business. The change in the economic condition can increase the level of economic performance to which Apple considers to be successful. The unemployment rate in the US, Japan and China were the significant causes of Apple’s downturn sales growth. The exchange rate, inequality rate and economic slowdown are the real reasons to which an organization considers to focus on international sales. US fiscal problems and Euro crisis have significant causes of downturn in sales growth. Thereby Apple considers to toughen the economic situation of the home country and manage stringing dollars that are the source of problems for economic instability. With higher purchasing power, the sales of Apple will be better and ensure global economy. This is the most significant factor that affects the sales volume and growth in the economy. To become successful, organization should focus on development and price strategies to cater the market.
Technological instabilities
Technology plays a significant role in growth of the business and the nation while shaping global landscape. Data fraud and theft is the reason of advanced technology which needs to be controlled by business and nations. Cyber attacks and data fraud are ranked as with the number four and five in global risk over technology. The sustainable pattern was recorded in the year 2018 to which cyber risks and environmental risk are expected to rise in the future. There is high impact and likelihood of risk that is increasing in the year 2020 which leads to disruption of operations and theft of money. New instabilities cause the integration of digital technologies and engage in risk that is associated with increase in theft and loss of privacy to governments. Increasing digital risks affects the business which leads to failure of the business. Malicious cyber attacks and cyber security lead to lax cyber security and massive breaches. Cyber vulnerabilities lead to unexpected directions for the business. This potentially affects continuous improvement in technology and innovation disruption are observed in organizations. Cyber attacks has high risk to critical infrastructure and state the access of information. Critical technological infrastructure is an in increasing concern for the business which need to be managed with encryption method. Immediate actions should be taken by the organization and nation as technological infrastructure has become a national security problem. Pairing of cyber attacks and critical information breakdown is the second most technology risk.
Artificial intelligence is sophisticated and amplifies the risks while creating particular aspects of business. AI connects people with the help of billions of devices which is a threat to humanity that revealed to a targeted AI approach. Within a video conferencing application, the major threat to the business is recognized and innovation occurs in the technological field. There is potential for malicious actors that creates pathogens in the business. Affective computing is the major aspect that is considered to potential consequence to technological change. AI responds and recognizes to the human emotions. The most widespread disruptive impact of technological change is considered with rise of media echo. The risk of technology and the increase of trajectories have found to be consistent with outperformance of information and possible reasons of failure of business. One such possible aspect that has evoked in the business is summoned with sadness and trust of the technology in the business. With the expected change that the business is expecting is considering the change in the business with the domestic and international aspects to strive in the business. Information technology is the highest earner that has encouraged business growth. Immense competitive advantage is expected by the business to reach growing market.
Massive influence of technology is constantly changing the market need. Advanced technology system ensure changes in the business and integrate effective results. Apple ensures market change and deals with integrated business challenge. Businesses can engage consumer reactions while it helps to address buying behavior. Integrating change in the business is to ensure and understand consumers reactions to several technological advancements. The benefit and opportunities that the business gets while adopting latest technology leads to growing market awareness about the products and services. Increased opportunities create technological awareness for Apple Inc. The external factors that affect the business are uncontrollable to which technological integration plays a significant role in the business. Cloud computing strategies tend to become important while being aware of the cloud friendly devices. Apple is able to focus on opportunity and ensure driving change in the business with the help of technology and a major trend that affects the business. Furthermore, technological integration devices are addressed effectively to which Apple continues to focus on providing products with latest technology.
Strategies
Apple has continuously improved the app store and have provided voice recognition as well as biometrics are the latest trends to protect and unlock the phones. This is one step forward that the business provides effective change while considering growth and connecting it with technological change. Apple does not exploit the market but the security purpose goals that the company has addressed in the business are highly appreciated. New inventions in the technology has led to safety and protection of the users. Apple has gained definite image in concentrating the brand reputation and focusing on growth of the business. Technology has been always priority for the organization to achieve competitive advantage. Competitors of Apple constantly strive for change and focus on technological advancement such as Samsung that steps ahead and aims for advanced knowledge in the business trend. The changing aspects of technology and infrastructure level has considered change in Apple while addressing an opportunity to continue grow and further achieve market share. Apple has its own store and operating system which is managed solely by the company. This shows the level of safety and security that Apple provides to the users while providing cloud security. The most attractive step for technology security is addressed which is managed completely by the company. Apple focuses on investing in R&D and providing unique products that are designed exclusively. The company provides Smartphone with unique feature and preference in style and size.
The software applications that the company uses is offered in continuation with the contract with the Apple rules and regulations. Unique and advanced technology is thereby appreciated by the business to which aggressive philosophy on innovation is the trend setter for the company.
Political strains
Geopolitical instabilities create a risk for the business which is frequently exacerbated. Continuous domestic and international strains creates increasing polarization in the society. Climate change becomes the driver for development of the business and nation. Western democracies are still struggling and are in post crisis pattern to which political fragmentation has complicated the overall situation of the business. The global issue that the world is facing is related to political issues of the country which cannot be easily controlled and affects every business. The process of considering effective governance is not considered while the national governance and global issue that is ensured is failure of national governance. Around 85% of the business is facing major power political confrontations which should be managed on priority basis. Business leaders all over the world should consider strong governance with rules and regulations that should protect the right of citizens and indulge in political health. There are partisan differences that are addressed by the business to which a deeper concern that need to be taken for long time is continuously managed. the vicious circle encourages diminishing social cohesion that takes place in the business. The ability to respond to change with societal challenge is widely considered. The problem of acute and global challenge need to be addressed effectively for ensuring competitive advantage and achieving market share. Weak governance measures and serious issues need to be resolved immediately to solve political issues and respond to societal challenge. The problem of global challenge is addressed effectively while integrating hange in the business and cooperating with government norms.