The Responsibilities Of Organisations Operating Globally Business Essay

Over the past few old ages, the rate of growing of concerns in a part has been faster than the rate of growing of end product round the universe as a whole. Almost all states in the universe are going of all time more incorporate with the universe economic system. This procedure is called globalization. Globalisation could intend for illustration that: most of the fabric we buy are made abroad ; a state buys fiscal and legal services from other state etc Globalisation has many effects upon businesses/organisation throughout the universe. The impact of globalization has non been equally spread. Some concerns have informants ‘ dramatic alterations because of globalization of the administration. This study explains the cognition of issues Arik Air is confronting in operating in planetary context and reappraisal of the issues presently impacting on its concerns. Arik air is an Airline company situated in Nigeria need to get another air hose in United Kingdom whish proposed to be called Arik Air UK and be a planetary administration


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There are different types of administration which consist of exclusive bargainer, partnership, private public partnership and limited company.

Exclusive bargainer ; this is a concern entirely formed by one individual and owned by individual individual with one or more workers. This type of concern can besides be classified as little graduated table concern.

The virtues of exclusive bargainer are ;

Independent -the proprietor will hold entire control of the concern.

Small capital -to set up exclusive trading it cost less the proprietor did non necessitate immense money, besides exclusive bargainer need little loan that can be obtain from bank, relations and friends.

Sole proprietor of profit-the net income belong to the exclusive bargainer, he does non portion with anybody.

Business personal businesss are private- it will be hard for the rivals to cognize how much the exclusive bargainers earned because exclusive bargainer keeps all the personal businesss of the concern private.

The demerits of exclusive bargainers are ;

Unlimited liability.

It sometimes hard to acquire loan from Bankss because of the nature of the concern.

Lack of continuity if the proprietor dies

Partnership is when two or more people come together to organize a concern, most partnerships are between two or 20 members.

Deed of partnership is set up by the partnership this contain the followerss

Formation that will be usage to portion net income or loss incur during the concern.

Sum of money to be contributed by each spouse to get down the concern.

The power of ballots will be determined by the proportion of capital provided by each spouses.

This is regulations to be follows when taking in new spouses.

Blue print of how the partnership will be dissolve.

Disadvantages of partnership are ;

Workload on one spouse will do difference among the spouses.

Different way of concern from spouses can do dissension.

Corporation -is a distinguishable legal entity that has been form through enrollment procedure, this is a organic structure that have legal right to come in into contractor or acquire loan from fiscal establishment, it can action and sued, recruit workers and pay revenue enhancements. The concern is different from the proprietor, corporation is limited liability dividend. The stockholders are non apt for the company settlement.

Limited company – An administration which is apt to investor or endorsers. The investor are limited to their investing or guaranteed to the company which the net income is portion, its fundss in the concern different to his personal money.

Private company limited-when the company is liquidated they agreed to pay certain sum to bailout the company.

Private limitless company- during the settlement of the company the stockholders and board of managers are entirely apt payment of debt owed.

Public limited company- the company traded publically on stock market such as London stock exchange, Nigeria stock exchange etc.

Public sector administration -this is an administration owned by the authorities, Federal, province and local authorities, there purposes and aim is to supply societal comfortss for the populace in footings of services e g, proviso of public conveyance, wellness, research non net income doing all the money made are rechanneled into the society.

Non net income organisation- this is an administration that is established for charity all the net income brand is channel back to the concern to prosecute the purposes and aim of the administration. They generate money through contribution from authorities and public. They are exempted in revenue enhancement or revenue enhancement tax write-off.

Global Context- international dealing between two administrations from two different companies, planetary context is a term used to jointly depict all commercial activities of private and authorities globally in footings of gross revenues, investing, logistics and transit.


The transnational administration face a batch of challenges, the company have to get power to wish money, connexions to travel into foreign land challenges that will suit in a planetary concern context. Three environmental factors that the company have to set into considerations are ;

Political economy-this is the policies made by the authorities of the acquisition state for the new constitution besides international concern jurisprudence must be look critically before venture into it.

The resource and marketing- the market and resources of the state and host of their new concern, the strength of the concern in the state.

Competition- There will be competition among the local concern of the host state, the local concern will give them a batch of menace because the people have already used to their local merchandise, and meanwhile the company have to do certain that their service is alone to be accepted by the purchaser in the host state.

Placing strategies-The administration have to cognize how to react to the geographical chance and menaces because the civilization different besides the rivals menace must be addressed with the local administration.

Gross saless and marketing strategy- must be considered because of the geographical different.

Supply chain- is another factor because it ‘s different from one state to another.

Different in legal system-there different legal system, labour Torahs and distribution, production scheme must be considered when traveling into planetary concern because it varies from one state to other.

International trade is a trade between two or more state, most private administration call transnational undertake such dealing for net income devising while authorities do the concern for net income to increase their gross domestic merchandise GDP or for political grounds, and this can be in footings of bring forthing goods and services. The services may include finance banking insurance, building etc. Organisational duty may be explained based on the undermentioned header:

Stockholders – stockholders are investors of financess into the concern, so they expect mean fiscal returns ; there will be involvement on their money which will come in signifier of dividend. They can besides be portion of policy devising in the administration.

Customer -they are like king in the whole issue, without the clients there will be no merchandises. So, the administration must responsible in supplying good value for the money they spent meantimes of lastingness of the merchandise or services given to them.

Employee-the employees must be treat beyond the contract signed with them, handle them like they are portion of the concern. They must be given equal preparation in new accomplishment and engineerings to be able to render an international criterion of services and merchandise to the clients.

Community – the administration must be friendly to the people in the community in which they operate.

Environment -they must carry on an environmental impact appraisal ( EIA ) for new operation besides they must non foul the environment with jeopardy or unsafe toxic waste that can impact H2O agribusiness, wellness of the people in the state.

Ethical issue – the ethical issue is really of import in concern they should prosecute the moralss for the development of their administration statues and long term endurance ; they should act as clients, providers, rivals and the environment general.


Political – the political scene in another state must be embraced to ease better trade between the authoritiess of other state in the universe ; a concern understanding must be signed between the administration and the administration in other state.

Economy – the administration must be ready to incorporate the economic system policy of another state their merchandise or services attract batch of investor in other portion of the universe.

Social – the administration will enroll workers from other state that they are making concern with and pay them good rewards besides support the community by supplying CSR ( corporate societal duty ) by supplying scholarships etc.

Technology -the universe is boom in footings of engineering utilizations for some times, the usage of engineering like cyberspace will assist planetary administration in transacting their concern fast to supply better and fast services.

Legal-the authorities policy of the other state must be recognised because the policy is used to protect the international trade against delivery of sham or outdated merchandises or supplying deficient services.

Environmental- the planetary administration aid in supplying sustainable undertaking, like tree planting besides cautiousness in footings of sum of waste released to the landfill they should besides assist in recycling of some merchandise and aid in runing for good environment.

Analyse how the public presentation of national economic system impact on the activities of concern administration utilizing Airlines as a instance survey.

SWOT analysis is concerned in finding the public presentation of concern counterpart it rivals. It is widely recognized manner of executing such an analysis, other methods can bring forth similar ( or better ) consequences. SWOT links the cognition of the present bases of competition with market scenarios. The consequence of grind is shown SWOT tabular array below, which is a concise statement of the state of affairs in which the house or concern administration finds itself.

An illustration of a SWOT tabular array for a no-frills air hose.





Airports used are better than those used by the other no- frills air hoses

Strong concern demand for inexpensive air menus

Airport used are worse than those used by the large bearers

The farther entry of subordinates of the large bearers

Management accomplishments

Strong leisure demand for inexpensive air menus

Repute for promptness

Higher airdrome charges

Lower cost than established air hoses

The involvement

Cash flows

Ease of booking flights

Many secondary airdrome underused

No safely record yet established

Better than mean employee dealingss

Poorer than mean client service

The features of strengths, failings, chances and menaces and the associated analysis are described and the troubles in transporting out a formal analysis are expected.

Many leader-managers find it utile to encapsulate the place of their administration in a concise statement of its strengths and failing vis-a-vis competition and the chances and menace that it faces in its environment. They do this by building a SWOT tabular array. A SWOT TABLE provides a utile spring board for their designation of scheme, since it identifies the failings that need to be strengthened, the strength that can be used for competitory advantage, the chances that can be used to the administration ‘s advantage, and the menaces that it needs to guard against.

The impact of planetary factors on UK concern administration.

Businesss are affected by an external environment every bit much as they are affected by the rivals. Global factors act uponing concern are legal, political, societal, technological and economic. Understanding of these factors is of import while developing a concern scheme.

a. Social factors – These factors are related to alterations in societal constructions. These factors provide penetrations into behavior, gustatory sensations, and lifestyles forms of a population. Buying forms are greatly influenced by the alterations in the construction of the population, and in consumer life styles. Age, gender, etc all determine the purchasing forms and understanding of such alterations is critical for developing schemes which are in line with the market state of affairss. In a planetary environment it is of import that concern schemes are designed maintaining in head the societal and cultural differences that vary from Uk to other states. Consumer faith, linguistic communication, lifestyle forms are all of import information for successful concern direction.

B. Legal factors – These factors that influence concern schemes are related to alterations in authorities Torahs and ordinances. For a successful concern operation it is of import that the concerns consider the legal issues involved in a peculiar state of affairs and should hold the capableness to expect ways in which alterations in Torahs will impact the manner they must act. Laws keep altering over a period of clip. From the point of position of concern it is of import that they are cognizant of these alterations in the countries of consumer protection statute law, environmental statute law, wellness & A ; safety and employment jurisprudence, etc.

c. Economic factors – These factors involve alterations in the planetary economic system. A rise in life criterions would finally connote an addition in demand for merchandises thereby, supplying greater chances for concerns to do net incomes. An economic system witnesses fluctuations in economic activities. This would connote that in instance of a rise in economic activity the demand of the merchandise will increase and hence the monetary value will increase. In instance of decrease in demand the monetary values will travel down. Business schemes should be developed maintaining in head these fluctuations. Other economic alterations that affect concern include alterations in the involvement rate, pay rates, and the rate of rising prices. In instance of low involvement rates and increase in demand Businesss will be encouraged to spread out and take hazards.

d. Political factors – This refers to the alterations in authorities and authorities policies. Political factors greatly influence the operation of concern in the United Kingdom. This has gained important importance of late. For illustration: companies and concerns runing in the UK have to follow directives and ordinances created by the UK. The political sphere has a immense influence upon the ordinance of concerns, and the disbursement power of consumers and other concerns. Business must see the stableness of the political environment, authorities ‘s policy on the economic system etc

e. Technological factors – These factors greatly influence concern schemes as they provide chances for concerns to follow new inventions, and innovations. This helps the concern to cut down costs and develop new merchandises. With the coming of modern communicating engineerings, technological factors have gained great drift in the concern sphere. . Huge volumes of information can be firmly shared by agencies of databases thereby enabling huge cost decreases, and betterments in service. Administrations need to see the latest relevant technological promotions for their concern and to remain competitory. Technology helps concern to derive competitory advantage, and is a major driver of globalisation. While planing the concern schemes houses must see if usage of engineering will let the house to fabricate merchandises and services at a lower cost. Firms can choose new manners of distributions with the aid of engineering. It has become easier for companies to pass on with their client in any portion of the universe.


Domestic markets -is the goods and service bring forthing in a state within a twelvemonth. The of National statistics make us understand that study of concern which will include the activities of the air hose operating within the United Kingdom. the uk economic system became shrank toward the terminal of 2012, it goes down by 0.3 % in the last three months harmonizing to the official GDP figures released, the short autumn was non in Air industry entirely but due to drop in excavation and quarrying by ONS. This affect many shops, makers and some fiscal establishments that force Bankss to closed down as a consequence of this many people lost their occupations, many consumers cut their disbursement even tourist that used the Air coach reduced due to cut.

Global market- is the procedure when the merchandises and services of a state or an industry is been runing in many states. The planetary markets helps the industries to travel higher in business.Uk British air passages is illustration of British bearer.British air passages sometime in November merge with some air hose in other state. the amalgamation make the British air hose to go a recognized and the universe 3rd largest air hose in the universe and increased in footings of Revenue among other air hose in competitory market globally.

Government policies-this is the jurisprudence that the Uk authorities put in topographic point to run into the standards in planetary market universe, this are done both locally and internationally to protect the concern universe. They are as follows ;

Security-internet cozenage has been checked by passing more money on IT professionals to track any concern fraud on line. Besides terrorist this besides really of import late UK authorities direct some troop of ground forces to Mali to battle the terrorist web that may be dainty to international concern in hereafter.

Air traffic policies-the UK authorities present a comprehensive and really large whitepaper on air traffic from 180mppa 476 by 2030, to fulfill future petition, besides new track, terminuss and improved on the direction operation.

Tax- late the UK authorities took a terrible step against revenue enhancement Evasion both locally and internationally, authorities spend 1000000s of lbs on watchdog to checkmate the activities of companies through HM gross and imposts. e.g. Google, Amazons, star vaulting horses coffee company late penalised. ( metro-Monday 17dec 2012 )

Bilateral relationship

Health and Safety

Environmental policies-this policies is to command noise in the air by the air hoses, besides authorities appraise clime alteration impact.

Trade block- this is barrier to merchandise between two more states, a group of states within a geographical part may make up one’s mind non to let other state to import some goods to their part, some that are non from their state illustrations are EU and non EU members.EU is created to hold individual market for their goods, services and labours they besides created trade block among the non EU.discriminatory trade policy.

Technology – in the past 20years engineering has made a immense impact on globalization, it has fastrack the growing seen in planetary concern illustrations are Email, cyberspace and nomadic phones. Internet has made it possible for speedy internal and external communicating which made it to be the most of import selling tool in planetary concern.meanwhile utilizing nomadic phone to pass on around the universe which is faster and non expensive, this besides avoid single traveling up and down while going. Technology non merely helps planetary concern in footings of growing but besides help the planetary administration to be more effectual in their concern activities.

CONCLUTION – Registration process for investors is really easy in united land, it allow investors design the internal company regulations every bit long as you have right to put under its legislative assembly jurisprudence, the corporate or company jurisprudence of united land is welcome development because they have the Torahs that protect the right of stockholders to independently merchandise their portions.


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