Global business is the international trading market with many hazards and opportunities for risk avoidance and market value capture. Business activities can only take place in an environment that is conducive to the company's success. This can happen when a corporation has a lot of expertise and knows how to read the macro and micro environment in order to ensure that the company is profitable. Complexity has to be understood by the company of macro environment and make an effective relationship with it so that there is going to be controlled management control and leaders to operate effectively. Small and large businesses will be discussed in the further report with examples to make the understanding be higher. Potter’s family holding limited is a private company which is operating since 2016 and is registered office is in North Yorkshire and is a small business (POTTER FAMILY HOLDINGS LIMITED, 2020). This company is expanding itself in Belgium country to be able to find itself more customers and since there are not many cultural differences, they would be able to make a strong base effectively. The report would be discussing the macro environment in which the business are working in order to be able to make a place for them in the market of Belgium.
Identify & critically evaluate the 4 most immediate factors of the macro business environment
Global business refers to process of working, in different places and location around the global market. This is a process of working in international trade where the organization sells their product and services in global market. Globalisation is one of the most important process which help the companies over the period to develop their working in international market. Small businesses can benefit from developing their businesses by achieving larger goals and improving their performance (Huo, Levchenko and Pandalai-Nayar, 2019). There are different ways of global business which include the exporting of product and services, licensing, franchising and FDI etc.
The main streams include the process of working in which the global business utilise the market research or business research to develop the process of working in the global market. Market analysis is one of the streams of researches which organization develops in their process to increase better global business. Potter Family Holding private limited is expanding their business in Belgium market so that they would be able to have a better economic factor. They are expanding their product and services in Belgium to analyse better outcomes from the services they offering. When an organisation works together, it can have both positive and negative outcomes. It is dependent on how the company operates in the new market. Potter ltd needs to improve its risk analysis in order to gain a better grasp of the market. Developing the factor of working with new product range and market development in Belgium to make an impact on the competitors required better working. Belgium is already having a good market for the businesses to (Wang and et.al., 2017). When a corporate organisation focuses on risk analysis, it has both positive and negative consequences; as a result, the firm has a perfect balance of study and expertise.
It is critical for a company to understand what market risks exist and how they can cost them money. Competitor analysis and demand analysis are two of the Potter family holding ltd's most important stream researches. It is essential for them as they need to work on the demand of their product in market and also the competition in the market on which they can make the strategies accordingly. Working on strategies can aid in the pre-understanding of knowledge, resulting in a better outcome in Belgium. Working in global business requires conducting these studies to comprehend the market they are entering and to keep them informed about market conditions. Belgium has a robust business environment in which Potter's Family Holding Ltd can establish a strong presence and expand efficiently in their market.
Businesses must focus on increasing profits, and establishing general changes in tactics can help Potter Family Holding Ltd achieve better outcomes in their worldwide market and improve market performance (Goyal, Sergi and Esposito, 2019). When working on business expansion, it's critical to check whether the location's geographic condition is strong and has recovered from the pandemic that the Belgian market has experienced. It is necessary since the company organization's investment may be at risk, and they must assess the risk element when working on global business. The global economy affects the SME in their overall performance for their business. The economy plays a vital role in the growth of business and also in giving the right opportunity for the employment to the people (Peng, 2019). Globalisation and the global economy are necessary for businesses to operate in the worldwide market, as well as for SMEs to operate in the international market and pay fewer taxes. The company wants to compete with large corporations, which they can do if they have the correct foundation in place. Infrastructure, population, human capital, technologies, and law, among other things, can have an impact on the global economy. The impact on the economy as a result of political changes and workplace expenses is present in Belgium which the company would have to face. Companies have a better opportunity of developing their firm in the market if the economy is in good shape (Ozili and Arun, 2020). On the other hand, if the market is facing issues with their economy the companies need to analyse the risk of investing in the business.
Working in the global economy has a significant impact on business organisations since they are unable to produce better results if the economy is declining and the risk of loss is high. When the economy suffers, a country's ability to manage business and give better results in the market to increase business suffers. Belgium is currently taking the necessary steps to be able to find the suitable work, ensuring that Potter's family holding Ltd is able to build a foothold in their market and take advantage of several prospects. Small and medium-sized enterprises (SMEs) can contribute to economic development by expanding business opportunities for the public and providing them with additional ways to generate higher returns in order to boost the economy of the country and the worldwide market.
When Potter's family holding limited relocates from Yorkshire to Belgium, a lot of factors, such as client base, profitability, and others, will work in their favour. Boarders have a different laws and regulations and the taxes which are going to be implemented on the raw material or products. The government will not be the same, there will be changes in the legislation which would affect the activities that the corporation will have to carry out (Alava and et.al., 2018). Legislative bodies will be comparable, resulting in the firm's current value remaining unchanged, but investments in commerce and transportation will be made. In order to create physical evidence, the firm will need to establish a presence in Belgium and buy assets. The company currently employs 150 people, but that number will need to grow as the company grows and a better workforce is required for easier operations in accordance with government regulations. The government also imposes a number of regulations on the environmental elements that must be followed, but it is because of this that the poultry operation, there will be no environmental restrictions that will affect the company's operations. To ensure that they have the correct supplies and products on the market, the organisation already uses natural equipment and technology (LEYVA and et.al.,2018). To be able to operate efficiently and profitably, the company will need to ensure that transportation taxes are properly functioning in accordance with the political considerations that exist in the market.
When a company expands, there are taxes and laws that the company must pay and register in order to operate more efficiently. Marketing policies and other government policies of Belgium are almost the same therefore planning would be better and the lack of experience work also not include a lot of risks involved. This way the company would be able to gaining the trust of customers as well when they have the government on their side. For Potter's family holding ltd, internationalisation would take place for better because the policies and regulations are nearly identical, and the taxes aren't as high, allowing them to have a stronger foundation. Political parties change, bringing new regulations and working conditions for businesses to follow in order to keep the company running smoothly, but the organisation will only require a few modifications.
Potter's family's holding limited economy must be strong in order for them to be able to afford an asset in Belgium. It is only when the economic factor of the company which is going to be stable then they would be able to make sure that they are taking actions for the betterment of the business to expand also. To ensure that the company's operating and performance are improved, the company must acquire assets and extend the farm in Belgium as well so that transportation is under control. In order to continue to uncover the appropriate economic component in the future, the corporation must ensure that it has a better plan in place with itself. Because there are more job opportunities in Belgium, the rate of growth and price of fresh food will increase. The interest rate on the company's products can be upgraded in accordance with the population, allowing them to establish a solid foundation in the market (JingyiXie, 2021).
Customers that are now present have a solid disposable income, which will help Potter's family holding limited to be more successful in Belgium. The company's demand must be high, and this can only be achieved if the macro environment's base is properly understood. The market will be more competitive, but if the company is aware of their marketing and commercialization strategy, things will run more smoothly. Taxes, asset investments, and advertisements, among other things, must be estimated in order to determine the best operating and, in particular, the method that the organisation will require to deliver the facilities to the clients (Mudany, Ngala and Gituro, 2021). Potter's family holding limited does not have exchange value, and the company must plan for this issue, which is critical to their success. In order to ensure that the company has the proper value in the market for the long term, control must be present in the areas of taxation. People will spend on the products and services of this business as they are serving the best quality and straight from the farm as well (Idris and Rahman, 2018).
Belgium's population is quite comfortable with numerous cultural features, and because Yorkshire and Belgium have similar populations, it will be beneficial to the company's processing. The foundation for the business at the new site must be sound so that it can achieve more stability quickly. People in Europe are becoming more health concerned, and it is critical that the businesses that serve them provide the highest quality products and services that are beneficial to their overall productivity (Jelassi and Martínez-López, 2020). Customers demand new products and services, which will ensure that the company continues to operate and process for them in the market of Belgium. Potter's family has made a vow to give clients with fresh products and services that originate directly from the farm. The organisation must ensure that they are meeting the expectations in order to find the best working condition. As the company considers expanding in Belgium finding suitable staff will be tough to come by, which is crucial for operations. The population has modernised in response to market needs, and it would be difficult to recruit qualified workers to care for the existing farm.
The age of the population will not be a limiting factor because everyone wants fresh items from the farm. Transportation will be challenging on a daily basis, as it will need to be given in the market because people dislike travelling (LOPEZDOMINGUEZ and LEVYA, 2019). The organisation must invest heavily in this area to ensure that they have the same attitude and behaviour as their customers in order to maintain a positive relationship. Experts or people who don't mind working in farms are needed for labour job, and since the farm will be on the outskirts of the city, they will be able to find suitable employment (Alava and et.al., 2018). Client pressure is always there in the organization, but proper planning and measures will ensure that it runs smoothly. Because physical appearance has a direct impact on customers, it is critical for businesses to ensure that they are properly marketing their products and services in the market for the long term.
Much technical advancement might occur in farm work, which is why the corporation can focus on packaging products and services so that clients are satisfied. Potter’s family holding limited has an interesting and attractive packaging including the font, colour, quality of raw material used for packaging, etc working as well which requires a good technology which they must have (POTTER FAMILY HOLDINGS LIMITED, 2020). Technology can help with research and development department to be able to find the market value for the future functioning as well while expanding them. Research and development department to get in a lot of changes which are technological related and puts a lot of pressure on the employees for the changes to be adapted as well. The company has to make sure that they are taking the right actions to be able to find the functioning. The firm must develop smart working methods, such as artificial intelligence, to ensure that the organisation is planning and acting appropriately, and that assistance is available in Belgium.
To be able to find the right employee, the company must take the necessary efforts to ensure that the new technologies are properly utilised (Hermina, RIZWAN and RIZWAN, 2020). Artificial intelligence and other technical tools used by employees would increase communication. This aids in greater distribution and efficiency as communication improves and productivity rises, all of which enhance the company's products and services over time. In Belgium, technology is also causing the rate of change in the firm to increase, indicating that the country is progressing. This is ideal for Potter's family to keep limited for the long run in order to function correctly. In order to discover the proper operations, there must be an economic balance, and detrimental labour must be stopped for the animals as well.
Cross fertilisation can lead to innovation in the business which can help in the development of better business for the firm. It is critical for businesses to work on their development by remaining open and seeing any opportunity to expand their business through fresh innovation. Bettering company results by comprehending development and identifying the process of working outside of one's comfort zone. They must also be more efficient in their recruiting of staff when working on cross-fertilization in order to get a consistent result and to explore innovative approaches to improve the business's results. Increasing the appropriate market value and focusing on the products and services given in the business to develop market value. It is very essential for the innovation to take risk and develop better business option for the growth in market and increase result in developed performance (Mudany, Ngala and Gituro, 2021).
Internationalisation can take place by Potter’s family holding limited so that there is going to be better working and performance. Internationalism is good for the business to have more sales and customer base in order to be able to find the right positioning in the market. The idea for Potter's family holding constrained by getting in the appropriate technological use and ensuring that they are able to expand efficiently also contains a lot of learning. Higher the variables that the firm must examine, such as asset, advertisement, physical evidence, and so on, must be considered in advance so that they can make the best judgments for the company.
In order for globalisation to occur, the organisation must ensure that cultural variations are taken into account. This is advantageous to the general operation of the business. Employees' and management's experience must be there in order for them to be able to follow the appropriate working and time frames. When a company expands, it must rapidly find a location for them in order to compete with the existing market competition. Businesses must ensure that they are doing the appropriate long-term activities in order to build a solid foundation and achieve long-term profitability.
The new market's decision-making capacity and attentiveness must be there for them to make changes as and when they are needed in the long run. In order to be able to locate the correct operating and functioning, the company's setting must be stronger as well. Before entering, businesses must be informed of the competition and ensure that they are making the necessary selections.
According to the aforementioned research, there are numerous aspects like innovation and uniqueness which a business can have as well as good customer base that must be considered to achieve the desired level of stability. Realities must be balanced in order to ensure that better problems will be addressed in order to increase the company's cultural component and profitability while also taking into account any unique qualities that may exist. The company's responsibilities are high in order for it to gain value, which is excellent for the business environment because it will lead to a greater understanding of the environment or market in which they are expanding. Customers' demands and supply can be met if a good workforce is hired in accordance with the company's plans. The environment must be understood in order to ensure that appropriate improvements and actions are implemented in accordance with the strategy to ensure that risks are minimised.
Alava and et.al.,2018. PEST Analysis Based on Neutrosophic Cognitive Maps: A Case Study for Food Industry. Neutrosophic Sets and Systems, 21(1), p.10.
Goyal, S., Sergi, B.S. and Esposito, M., 2019. Literature review of emerging trends and future directions of e-commerce in global business landscape. World Review of Entrepreneurship, Management and Sustainable Development, 15(1-2), pp.226-255.
Hermina, N., RIZWAN, N. and RIZWAN, A.D.M., 2020. CORPORATE STRATEGY BASED ON BUSINESS ENVIRONMENT MACRO AND MICRO TO ACHIEVE BUSINESS PERFORMANCE SME (SMALL AND MEDIUM ENTERPRISES) BUSINESSES IN WEST JAVA, INDONESIA DURING THE COVID-19 PANDEMIC. PalArch's Journal of Archaeology of Egypt/Egyptology, 17(10), pp.3718-3731.
Huo, Z., Levchenko, A.A. and Pandalai-Nayar, N., 2019. The global business cycle: Measurement and transmission. National Bureau of Economic Research.
Idris, J.U.N.A.I.N.A.H. and Rahman, S.S., 2018. Analyzing marketing macro environment of Islamic tourism industry in Malaysia. In The 5thInternational Conference on Management and Muamalah “Empowering Knowledge Sharing Culture in Management and Muamalah (pp. 435-442).
Jelassi, T. and Martínez-López, F.J., 2020. External Analysis: The Impact of the Internet on the Macro-environment and on the Industry Structure of e-Business Companies. In Strategies for e-Business (pp. 49-95). Springer, Cham.
JingyiXie, L., 2021. SWOT-PEST Analysis and Research on the Development of Chinese Table Tennis in the New Era. CONVERTER, pp.521-527.
LEYVA and et.al.,2018. A framework for PEST analysis based on fuzzy decision maps. Revista espacios, 39(16).
LOPEZDOMINGUEZ, S.D. and LEVYA, M., 2019. PEST analysis based on fuzzy decision maps for food industry. Revista ESPACIOS, 40(03).
Mudany, J.O., Ngala, M. and Gituro, W., 2021. Moderating Effect Of Macro Environment On The Intervening Effect Of Capital Structure On The Relationship Between Strategy Implementation And Performance Of Energy Sector Institutions In Kenya. African Journal of Emerging Issues, 3(1), pp.67-95.
Ozili, P.K. and Arun, T., 2020. Spillover of COVID-19: impact on the Global Economy. Available at SSRN 3562570.
Peng, M., 2019. The growing market of organic foods: Impact on the US and global economy. In Safety and practice for organic food (pp. 3-22). Academic Press.
Wang, Z., Wei, S.J., Yu, X. and Zhu, K., 2017. Measures of participation in global value chains and global business cycles (No. w23222). National Bureau of Economic Research.
POTTER FAMILY HOLDINGS LIMITED, 2020. [Online]. Available Through: < https://www.reportingaccounts.com/uk/09984032/potter-family-holdings-limited/>.