The Global context of modern business Essay Example | Topics and Well Written Essays - 2500 words

The Global context of modern business - Essay Example In today’s fast paced business environment Companies need to be fast growing, efficient, profitable, flexible, adaptable, and future-ready and have a dominant market position because in the absence of these qualities and characteristics companies cannot pose healthy competition in the modern global economy. Hence to successfully pursue their goals and also maximize profits, it’s crucial that they be in a position to obtain entree into new markets and come up with brand new ideas. Companies frequently opt to expand their business by means of Mergers & Acquisitions more willingly than engaging their labours on their personal business activities. This kind of growth and expansion is seen as a more rapid mode of accomplishing the primary purpose. (Krishnan 2009) Particularly in technology focused industries, where development is often boomed with the aid of amplified innovations, and companies can also stay in competition by being parallel to those which companies that are developing the innovative technology in the first place. This parallelism can be attained through both Merger as well as Acquisition. (Krishnan 2009) Today in the modern world companies can gain and sustain competitive advantage by being knowledgeable. The knowledgeable employees of an organization are its asset and are well treasured by it. (Krishnan 2009) Dimensions of the Business Environment: The business environment of a company is the macro and micro environment in which a company operates but it doesn’t have a direct control over it. It influences the company`s activities and performance in various ways, proving to be positive or negative at different stages in time. (Agrawala 2009) The macro environment is the general environment of the country in which the company is operating and it affects all companies in the economy. The next environment affecting the company is the industry and this comprises of the industrial conditions in which the company is operating in step to its competitors. Next is the microenvironment which deals with its specific markets and to other organizations that contribute to its production and distribution activities. It may also include other businesses manufacturing and marketing complimentary goods and services. (Agrawala 2009) Business Opportunities in Pakistan Since 1990 when Pakistan was on the threshold of bankruptcy, it has shown a remarkable political and economical development and has overcome the negativity in the minds of the international marketers. Pakistan is one of the most prominent countries of the Islamic world with an ever increasing population of approximately 150 million; hence it is well renowned by the international community. Considering the geographical location of Pakistan, it has close political and economic relations with the Middle East, Central and South Asia as it is the main entryway to Central Asia and supplier to the Emirates. Pakistan is a member of the South Asian Association for Regio nal Co-operation (SAARC) and lately noteworthy steps have been taken by SAARC, to create a South Asian Free Trade Area (SAFTA) which will also include India. (Guitard, Khan & Bienen, p 2, no date) Since 9/11 Pakistan has received sizeable economic support from its key creditors and this has made significant room for fast export growth, a positive balance of payments, reduction of the cost of debt service, a dramatic increase in the country’s currency reserves and an all time low for domestic interest rates. Due to the reduced cost of debt as well