Unit 25: Global Business Environment

Assignment Brief – Assignment 1

Student Name/ID Number

Unit Number and Title Unit 25: Global Business Environment

Academic Year

Unit Tutor

Assignment Title
Industry review – Competing in a Global and Complex World

Issue Date 1/2023 (updated: 1/2024)

Submission Date

Submission Format

• The submission is in the format of a written review report for an industry on the issue of
competing in a global and complex world.
• The report should make references to contemporary examples, case studies and images.
• The review should be written in a professional format, making use of appropriate headings,
columns, bullet points, titles, subtitles and charts.
• Citation and bibliography using the Harvard system should be given.
Inaccurate use of referencing may lead to issues of plagiarism if not applied correctly.
• The recommended word count is 2,500 words, although you will not be penalized for going
under or exceeding the total word limit.

Unit Learning Outcomes

LO1 Analyze the key factors which drive globalization.

LO2 Determine the strategic complexities associated with operating in a global environment.

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Transferable skills and competencies developed

• Commercial acumen based on an awareness of the key drivers for business success
• The ability to analyze and evaluate a range of business data, sources of information and
appropriate methodologies
• Strong digital literacy
• Articulating and effectively explaining information
• Communication and listening, including the ability to produce clear, structured business
communications in a variety of media.

Vocational scenario

Organization

KPMG is a global network of professional firms providing audit, tax, advisory and legal services in
144 countries. KPMG in Vietnam was established in 1994 and now is one of the largest professional
services firms with a balanced mix of international and local clients. They work closely with their
clients, helping them to mitigate risks and grasp opportunities (KPMG International, 2022).

KPMG Vietnam has been invited to participate in an Investment Promotion

Conference (IPC) organized by the Foreign Investment Agency, which is a unit under the Ministry of
Planning and Investment of Vietnam. The Agency’s role is to assists the Minister in performing the
state management function of foreign direct investment activities in Vietnam and Vietnam’s offshore
direct investment. The purpose of the IPC is to review the impacts of global business environment on
some key potential industries for FDI in Vietnam.

Role

You have joined KPMG Vietnam as a Research Assistant at KPMG Insight Centre, which provides
in-depth professional business research on corporate, industry and global scale.

Your task is to assist the senior research specialist with researching activities at the centre. Recently
you have been asked to draft an industry* review that will feature in the Investment Promotion
Conference material pack. The review will be distributed to conference delegates and also be
published on the KPMG Online Insights for existing

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clients and attracting new potential clients.

(*The industry should be specified by the course tutor. Each class should be assigned a set of different
industries).

Assignment activity and guidance

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The overall aim of the industry review is to address the complexities associated with operating in a
global environment for businesses in general and for companies of the specified industry in specific.
So, you are required to do research and draft an industry review that may include the followings:
1. Introduction:
Based on the scenario, the student introduces the reasons for paying attention on the chosen
industry, the purpose and the structure of the report. (Importance: The student should NOT
repeat the scenario.)
Regarding to purpose of the report, an overview of globalization should be included with a
short definition/concept of globalization, brief explanation of its dimensions (economic,
cultural, political and social) with appropriate examples for each dimension (at least one from
the chosen industry).
2. Key driving factors of globalization:
- Briefly introduce key drivers affecting a specific industry to go globalization based on Yip’s
model. Analyze these key factors of cost, market, environment, and competition with
evidences from the chosen industry to justify your argument of what and how they drive
global commerce and trade.
- Identify some key digital technologies and innovation and analyze their impacts on
globalization in the chosen industry with specific examples
- Critical analyze (with appropriate level of academic literature reviews) the impact of these
factors on global business environment in terms of challenges and opportunities. Some
considerations on how digital technologies and innovation in the chosen industry could foster
or hinder companies in operating in a global environment should be critically analyzed and
critically evaluated as well.
3. Key global strategic complexities:
- Examine the complexity of strategic challenges faced by organizations when operating in a
global environment. The examination should be in the chosen industry with some specific
examples related to international trade laws,

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 global economics and their environmental impacts, and global supply chain as follows:
+ Identify some of the most influential international trade laws and examine the impacts of them
on MNCs
+ Examine how the global economics may impose more risks to MNCs and how MNCs may
respond to this challenge with their diversification strategies. Explain some issues of the
environmental impacts in associated with such risk and diversification strategies.
+ Examine the difficulties for MNCs when participate in international supply chains management
(such as global sourcing, production and distribution).
- Determine the strategic complexities associated with operating in a global environment through
examine the main challenges and opportunities faced by business in the global economy. The
examination should be supported with examples from some companies in the chosen industry
with challenges and opportunities from at least 3 aspects of the following:
+ Legislation and regulatory requirements
+ Operating across different time zones
+ Culture differences and cultural diversity
+ Monetary environment
+ Political unrest and instability, and
+ Managing global customer need and expectations
4. Recommendations for globalization in digitalized world:
- Summarize all key challenges and opportunities identified in the report
- Evaluate strategic challenges that determine the above-mentioned strategic complexity in
context of risk and diversification and the supply chain flow.
- Critically evaluate with benchmarking or cited literature reviews and make
recommendations, if appropriate, on how organizations can respond to, and thrive in, a
globalized, digitalized world.
5. Conclusion:
- Summarize all the key findings and analysis
- Conclude whether globalization has done better or worse to MNCs to compete in the chosen
industry and how to encourage the good side and mitigate the bad side to businesses in general.

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 6. Reference
7. Appendix (if any)

Recommended Resources

Please note that the resources listed are examples for you to use as a starting point in your research –
the list is not definitive.
Weblinks
Entrepreneur. How to Take Your Company Global. Available at:
https://www.entrepreneur. com/article/159252
Inc. 6 Tips for Writing Compelling Thought Leadership Articles. Available at:
https://www.inc.com/entrepreneurs-organization/6-tips-for-writing-compelling-thought- leadership-
articles.html
World Business Culture. How to do business worldwide. Available at:
https://www.worldbusinessculture.com/
Velocity Global. Global case studies, videos and reports. Available at:
https://www.velocityglobal.com/resources HN
Global (2021) Reading Lists. Available at:
https://hnglobal.highernationals.com/learning- zone/reading-lists
HN Global (2021) Student Resource Library. Available at: https://hnglobal.highernationals.
com/subjects/resource-libraries
HN Global (2021) Textbooks. Available at:
https://hnglobal.highernationals.com/textbooks
Journal articles
John Cantwell (2017) Innovation and international business, Industry and Innovation,
24:1, 41-60, DOI: 10.1080/13662716.2016.1257422: https://doi.org/10.1080/13662716.2016.125
7422
Fred Hu and Michael Spence. (2017). Why Globalization Stalled and How to Restart it, Foreign
Affairs.
Mukherjee, Sonia. (2018). Challenges to Indian micro small scale and medium enterprises in the era
of globalization. Journal of Global Entrepreneurship Research. 8.
10.1186/s40497- 018-0115-5.
Textbooks
Bartlett, C. and Beamish, P. (2018). Transnational Management: Texts, Cases, and
Readings in Cross-Border Management. 8th Ed. Maidenhead: McGraw-Hill
Daniels, J. D., Radebaugh, L. H. and Sullivan D. P. (2021) International Business
Environments and Operations. 17th Ed. Harlow: Pearson
Peng, M. (2016) Global Business. 4th Ed. Cengage Learning

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 Learning Outcomes and Assessment Criteria

Pass Merit Distinction

LO1 Analyse the key factors which drive globalization

P1 Analyse key factors of cost,

market, environment and
competition that drive global M1 Critically analyse the impact
commerce and trade. that key factors have on the LO1 and LO2
global business environment in D1 Critically evaluate the global
terms of opportunities and business environment, including the
challenges. opportunities and challenges faced by
organizations.

LO2 Determine the strategic complexities associated with

operating in a global environment

M2 Evaluate strategic
challenges in context of risk and
P2 Examine the complexity of diversification and the supply
strategic challenges faced by chain flow.
organizations when operating in
a global environment, supported
by specific examples.

I.Introduction:
Encompassing 178 locations throughout 26 countries and territories, FPT is a
valuable partner offering services and solutions to hundreds of significant
organizations across various industries, including high-profile and Fortune
Global 500 clients. Leading technology partners of the top technology
companies in the world, including SAP, Microsoft, GE, Airbus, Siemens, and
Amazon Web Services... I was given the task of composing a report on FPT's
worldwide history over the last three decades in honor of the organization's 35th
anniversary.

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Globalization has resulted in significant and enduring transformations. Every
stage and phase of globalization has a variety of transitions that affect a
civilization as a whole and the planet itself in the end. Globalization has
exploded as a result of these technical breakthroughs, enabling swift and
effective communication across nations. There is no longer a need to
communicate and disseminate information via roads, highways, or airplanes
because of technology and social media. In order to achieve the objectives,
interests, and benefits of any individual, group, or company, globalization helps
society, politics, culture, and economy. Globalization facilitates the attainment
of objectives, benefits, and advantages for people, groups, and businesses in
social, political, cultural, and economic spheres. The survival and advancement
of civilization in this wealthy era are facilitated by globalization, which also
helps to integrate and connect trade and geography. The study also looks at the
dynamics and effects of globalization, as well as the dangers and difficulties that
come with change for Vietnamese industries and enterprises.
Therefore, the following report is divided into two parts:

(1) The author will define globalization and examine how it affects politics, the
economy, culture, and society.
(2) The report aims to enhance your critical thinking abilities by providing you
with real-world examples of important information or data. Specifically, the
primary impacts of growth in the selected field; In this portion, the writer
explains the rationale behind the industry selection and explores the YIP
model's framework description to illustrate how four factors drive industrial
globalization. Lastly, the author will assess the issues, dangers, and
advancements in nations pertaining to the chosen industry and its structure.

Methodology:
The author conducted research and found material online. Every piece of data
included in this study was gathered utilizing Google tools and secondary
sources. To outline report requirements, data and information are collected from
reputable websites, books, and news stories. Secondary data supports the study
methodology and aids in content clarification. Yip models provide clarification
on different types of information retrieval procedures for gathering and
assessing comments. Consequently, secondary data information helps uncover a
multitude of reliable and significant facts.

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Among the top providers of information technology services is FPT (FPT
Corporation, English: FPT Group), whose full name is FPT Joint Stock
Company (formerly called Technology Investment and Development
Company). largest news in Vietnam. Three primary areas of business for FPT
Corporation are technology, telecommunications, and education. FPT is among
the top IT firms in Vietnam and in the top 100 worldwide for trust services,
having developed over the course of more than 30 years. Based on data from the
UNDP, this ranks as Vietnam's fourteenth-largest business in 2017.
This is Vietnam's third private company in 2012, according to VNReport. Based
on the evaluation and vote of VNReport, FPT Corporation is now rated 17th out
of the 500 largest private companies in Vietnam.

FPT, which focuses on technology and telecommunications as its primary

business, presently has 46 systems. offices in 22 countries and has
telecommunications infrastructure that covers 63/63 provinces and cities in
Vietnam. The company is also continuously growing its activities in the
worldwide market. FPT has always operated with the primary objective of
giving client happiness through the best possible goods, services, and
technological solutions. With about 30,600 people working for the company
overall at the moment. In addition, FPT is always exploring and innovating new
technological trends, incorporating them into the broader global technological
trend and strengthening its standing in the global economy.

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II. Define the concept globalization in terms of different dimensions:
The outcome of contemporary economic progress coupled with cutting-edge
developments is globalization. As a result, the quickening of ties,
interdependence, and collaboration between nations, regions, and peoples
worldwide is seen as a hallmark of the internationalization process. A perfect
environment has been produced by globalization for the growth of several
economic sectors.

Globalization is not a discrete idea that can be precisely described and

quantified, nor is it a linear process with definite starts and ends. Any person or
circumstance can benefit from this when it is properly defined and utilized.
According to Nikitin and Eliot, globalization has as its main goals "the
establishment of an international market without sociopolitical control," process
thinking, cross-border policy transfers, knowledge diffusion, cultural
consistency, and the re-creation of power, relations, and discourse.

2.1.Economic dimension:
According to Kelly (2018) asserts that the trend of economic globalization
cannot be reversed. The process of increasing cross-border trade in goods and
services, international capital flows, and rapid technology innovation that makes
the world economy increasingly integrated is known as economic globalization.
In the course of global economic development at the turn of the millennium, it
defines the constant expansion and integration of market boundaries, which was
an inevitable trend. Economic globalization is primarily driven by two factors:
the ever-growing importance of technology in all forms of production and
marketing. Stated differently, the scientific and economic environment has
resulted in quick technical advancements, which in turn have contributed to the
current rapid expansion of global economies. The rapid expansion and
development of the global economic system can only be attributed to the
increasing cross-border division of labor, which has reached the industrial chain
level in national firms.
Example:
• Given their substantial influence on the business's operations, macroeconomic
issues are without a doubt one of the most crucial external variables for FPT.
Furthermore, the corporation is significantly impacted by economic variables
like the GDP growth rate, level of disposable income, and employment rate
because of the nature of the products it manufactures and sells. Furthermore,
changes in interest rates and currency rates in relation to a firm's overseas
operations are another significant economic issue that impacts a firm's foreign
revenues (Jonson and Scholes, 2006).

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• International businesses have existed for centuries, such as the East India
Company, which was established in 1600 and was involved in the trading of tea
and spices from Asia to Europe. Therefore, international business for
organizations gets easier because of tax agreements that enable businesses avoid
double taxation, free trade agreements like NAFTA, the free movement of
goods and services, and speedier services.

2.2. Cultural dimension:

According to Kelly (2018) argues that cultural homogeneity is fundamentally a
way of life shaped by the spread of ideas and goods known as cultural
globalization. Globalization, largely due to the convenience or allure of
technology, has shown to be a step toward universality that would eventually
make human civilization nearly the same everywhere. This includes media,
internet shopping, personal culture, and foreign travel. This adds to the lengthy
and significant cultural history of colonialism and the commodity trade. People
can participate in a variety of cross-cultural and cross-border social interactions
as a result of cross-cultural interaction. Social bonds are formed and
strengthened by more than just material causes. Cultural globalization includes
the emergence of common beliefs and values as well as the formation of
personal and collective cultural identities. Consequently, an increasing number
of cultures and races are merged.
Example:
• The core of FPT culture is its people. Nonetheless, the principles that every
member of our team upholds and the culture we have established—which we
are always working to enhance—are the foundation of our success.

• Cuisine and dish assortment. Our grandparents probably remember an era

before eating a lot of foreign food. However, utilization of products and spices
from throughout the globe is commonplace in today's multicultural society.
Restaurants serving Chinese, Indian, Japanese, and American food may be
found in most major cities worldwide. So keep in mind that culture
encompasses more than just cuisine. Cultures are more deeply rooted in the
values and beliefs that various cultural groupings uphold.

2.3. Political dimension:

Political globalization, according to Modelski, G. & Devezas (2007), causes the
volume and complexity of items like regional and global systems to increase.
Social change has an impact on national governments, international
organizations and their governments, non-governmental organizations (NGOs),

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and regional entities. Two of the most significant effects of international
globalization are the demise of nation-states and the rise of alternative political
groups. One of the most blatant examples of globalization on a global scale is
the creation and growth of the UN. A complicated, dynamic, and ever-evolving
phenomenon is political globalization. Globalization has paved the ground for
the emergence of a global political framework and particular policies, to put it
in evolutionary terms.
Political globalization (UN) is responsible for the establishment of international
organizations like the Association for Regional Cooperation in South Asia
(ASEAN) and the United Nations. These institutions were set up to facilitate the
resolution of both internal and diplomatic disputes.

Example:
• FPT's political implications may differ from nation to nation due to the
company's global operations. Furthermore, these elements are subject to major
change at any time due to the governments' perpetual ability to adopt new laws,
tariffs, or taxes. This shows that these elements, which are common across the
country, are outside the corporation's control or influence. In order to keep
ahead of the competition, FPT must therefore routinely evaluate the influence of
these political issues and incorporate them into its business plan.

• NAFTA was the main source of anti-globalization sentiment in the 1990s,

since it was thought to have reduced labor standards and resulted in the
departure of blue-collar workers from the United States. Numerous allies hold
yearly exercises to cement their military partnership and safeguard their
interests. China intended to increase its influence throughout Asia and the
Middle East, so it started the Belt and Road Initiative as a commercial project.
The North American Treaty Organization was another international political
arrangement created following World War II. The European Union is a trading
organization and treaty that is composed of 27 nations on the European
continent. This is the treaty that replaces a number of prior political agreements
that were made to promote European integration following World War II.

III. Discuss key drivers of cost, market, environment, and competition affecting
organizations to go globalization:
Multiple variables contribute to globalization. The Yip Model, on the other
hand, is the most effective method of factor analysis. Yip lists four crucial
factors to take into account when evaluating an industry's level of globalization:

(1) Market factors

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(2) Cost factor

(3) Competitor factor

(4) Government factor

This is important for the worldwide marketability of the solution as well as its
long-term profitability

3.1. Market Drivers:

One market factor promoting globalization and helping multinational firms is
market standardization. Globalization has increased the likelihood that
marketplaces may have comparable customer preferences and needs, such as a
shared need for low-cost loans. The second feature of globalization-induced
standardization is the existence of foreign clients. People may now offer
standardized commodities in exchangeable markets, increasing their customer
base and, consequently, their revenue, thanks to globalization. Businesses can
increase revenue by doing this and expanding the market for their products.

Most Vietnamese businesses struggle to establish themselves as the top brands

in telecoms technology. Consequently, every producer concentrates their efforts
on developing and branding a select few product lines. important products
which have qualities and abilities to give adequate goods for clients. To confirm

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and keep the company's top spot in the sector, FPT consistently devises a plan to
broaden its product line and release the newest digital technology goods and
services. FPT is regarded as the top option for Vietnamese families due to its
various accomplishments.

International Marketing: Facebook, YouTube, TV, Google, etc. Vietnam, like

the majority of other countries, has access to social media platforms like
Facebook and YouTube, search engines like Google and Coccoc, and marketing
outlets like television. Social networks are the most widely used online
advertising channel for Vietnamese businesses, according to a 2021 poll that
revealed 55% of respondents used them for online advertising. Traditional
advertising forms like TV and print are the second most favored media for
online advertising, according to 48% of the respondents. Finally, it can be said
that Vietnam ought to join the international economy and broaden its market.

3.2.Cost drivers:
Globalization has given multinational corporations a plethora of options in
various domains. They have discovered innovative ways to lower expenses and
raise revenues by diversifying their interests into other nations. For instance,
when it comes to factories, their manufacturing firms give Bangladesh,
Vietnam, Cambodia, and China first priority. A inexpensive yet skilled labor
force, an abundance of resources, an easy commute, and minimal operational
costs are some of the factors mentioned. Two outcomes of globalization are the
opening of borders and possibilities for nations and transnational corporations.
Globalization has created new opportunities that have increased and
complicated competitiveness.

Positive logistics: In Vietnam, the logistics industry expanded by roughly 12–

14% in 2018 over 2017. Including all companies that operate on the lines of rail,
road, sea, inland canal, air, etc., there are 3,000 transport and logistics
companies in existence at the moment. Vietnam's transportation and logistics
sector offers a lot of untapped potential and early growth prospects. With the
expansion of the transport and logistics sector, Vietnam will soon be ready to
challenge China as the region's new manufacturing hub. With an annual growth
rate of 14–16%, this is one of the service industries in Vietnam that has
experienced the quickest and most steady growth in recent years.

Businesses around the world can accept that sourcing costs and efficiency differ
from nation to nation. Two additional expenses of globalization for businesses
are the ability to achieve global efficiency and the high expenditures associated
with research and development.

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3.3. Competition drivers:
The increase in trade brought about by globalization is causing the country to
grow quickly and steadily. This progress has led to a tremendous deal of
competition. The competitive aspect greatly encourages dealers to advertise
their items more extensively. But if the neighborhood doesn't advance, growing
the company or the area will have unexpected repercussions.

Due to the increased global market competitiveness, businesses are being forced
to "play" abroad. This dynamism is a result of strong international connectivity,
two-way trade, and significant foreign direct investment (FDI) activity. They
may be facing more competition from other continents since they are respected
by the neighboring nations. It is the competitor's globalization as well as their
driving force. As the company expands, everyone else has to adapt or risk
falling behind. Due to the abundance of competitors, the strongest of which are
VNPT and Viettel, FPT may have numerous challenges in this area.

3.4. Government drivers:

Lower tariffs and nearly universal access to foreign direct investment are the
results of free trade policies and market deregulation. Just a few recent
examples include the World Trade Organization (WTO) established in 1995 and
the General Agreement on Tariffs and Trade (GATT) established in 1947, as
well as the opening and commercialization of Eastern Europe.

Laws and government regulations also aid in the internationalization of the

consumer electronics sector. Various policies have been put in place by a
number of governments to aid in the development and expansion of the
consumer electronics industries in each nation. To assure economic growth and
development based on each nation's economic, cultural, social, and resource
expansion as well as deep international economic integration, provide a
synchronized, stable, and equitable policy framework. expansive. expansive.
Fulfill product demand from clients while ensuring there is enough available for
them to integrate and create a civilized society. To ensure quality and
consistency, FPT must follow industry guidelines and offer users cutting-edge,
entertaining equipment.

FPT's vision and strategy are very astute, and they plan for major dangers that
are expected to occur so that they can be dealt with quickly (resolving risks).
Vietnam has a large export market network based on bilateral and global free
trade agreements, as well as a developing trade and investment environment.
Thanks to its experience gaining access to markets across multiple nations, FPT

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is a company that is expanding. But FPT is always in jeopardy due to intense
rivalry from rivals like Viettel.

IV. The complexity of the strategic challenges that organizations face when
operating in a global environment:

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