the global business environment presentation slides - sessions 2-8

The Global Business Environment: Introduction and perspective

Session 2

GlobalizationOpportunities and threats

The “China effect” revisited The Eurozone crisis Fiscal crisis in America and Japan The BRICS Free trade vs. Protectionism Globalization and CSR Globalization and climate change Sustainability and the “triple bottom

line”

Globalization and International business: Country analysis and the investment decision

Sessions 3-8

Political & Legal Landscape

Session 3

The Political Landscape: Topics Political institutions International relations The role of government in the

economy Market liberalization vs.

protectionism Regulation vs. deregulation Key policies Outlook

Political institutions

The basic rules of the game Type of political regime (democratic,

authoritarian) Political stability (critical consideration)

Example: China Important questions in the current context -China: Middle class growth and political implications

Outlook and implications for business

International relations Membership in International Official Multilateral

Organizations (UN, WTO, IMF/World Bank, Regional Trade Blocks/FTAs, etc.)

Some important questions in the current context-Will a U.S.-E.U. free trade deal materialize?-Will the EU-China trade relationship deteriorate?-Will the Japan-China relationship deteriorate? -Will China develop stronger energy ties with Russia?-How will the India-China relationship unfold?

Outlook and implications for business

The role of government in the economy

-Market liberalization vs. protectionism-Will America turn protectionist?-Will Europe turn protectionist?

-Regulation vs. deregulation-Flexible labour markets in Europe?-Does privatization of public utilities work?-More banking regulation?

Example: The EU and the Eurozone Outlook and implications for business

Legal LandscapeSession 3 continued

Legal Landscape: Topics

Judicial system Relations between various levels of

government Business regulations & taxes Labour law Effectiveness of the legal system Outlook

Legal Landscape: Considerations, examples and cases (1)

Judicial system-Structure, degree of independence (examples)

Relations between various levels of government

-The question of jurisdiction (examples)

Business regulations & taxes-Ease of doing business (examples) -Corporate taxes (examples)-Direct vs. indirect taxes (examples)

Legal Landscape: Considerations, examples and cases (2)

Labour law-Labour protection: Unions & collective bargaining, labour conditions (examples)-Minimum wages (examples)-Corporate Social Responsibility (CSR)

Effectiveness of the legal system: enforcement-Examples (Canada and Greece)

Outlook and implications for business-Cases: Greece (Eldorado Gold), Bangladesh (WalMart, etc.), China (Apple; Foxconn)

Economic LandscapeSession 4

The Economic Landscape: Topics Economic performance and competitiveness GDP composition by sector (agriculture, industry, services) Fiscal and monetary situation Trade and the current account External debt FDI & portfolio investments Foreign exchange reserves Credit rating Employment Outlook

Key industry sectors Industry structure and competition Financial sector Outlook

Macroeconomic Considerations Economic performance and competitiveness GDP composition by sector (agriculture, industry,

services) Fiscal and monetary situation Trade and the current account External debt FDI & portfolio investments Foreign exchange reserves Credit rating Employment Outlook and Implications for business

Example: Japan (use the basic macroeconomic identity to illustrate)

Microeconomic Considerations Key industry sectors Industry structure and competition Financial sector Outlook and implications for

business

Example: Singapore (e.g., logistics)

Social LandscapeSession 5

The Social Landscape: Topics and Case Demography Income distribution & standard of living Literacy & education Health care Culture, religion & work ethic Formal & informal labour markets Social welfare Outlook and implications for business

Case: Canada (e.g., auto industry: demand and supply factors)

Corporate social responsibility (CSR)

Technological & Environmental Landscape

Session 6

Technological Landscape: Topics Intellectual property Research & Development Key high tech sectors Outlook and implications for

business

Technological Landscape: Considerations and case Intellectual property -Rationale for protection and patents Research & Development-Overhead costs, scale of production, industry concentration, government policy Key high tech sectorsExample: Pharma industry Outlook and implications for businessCase: Novartis India

Environmental Landscape

Session 6 continued

Environmental Landscape: Topics Environmental regulations & actions

taken Environmental impact Outlook

Environmental Landscape: Considerations, examples and cases

Environmental regulations & actions taken-Rationale of regulation (the theory)-Policy debates (examples)-Policy alternatives (examples)

Environmental impact-Case: Canada’s oil sands -Case: Europe’s cap-and-trade

Outlook and implications for business-Threats (Case: Haze over Singapore)-Opportunities (Case: investing in green

technologies and the “triple bottom line”

Using PESTLE results as an input to the SWOT analysis

Session 7

Group Assignment II Team Presentations: Instructions (1)

The teams of ‘student consultants’ will now proceed to assess (in principle) a company’s plan to do business in the country, which the team has already analysed in phase 1.

From the perspective of the proposed business investment, what are the opportunities and threats in the country? What are the company’s internal strengths and weaknesses?

The team’s performance in this consulting project will be assessed on their capacity to make effective use of PESTLE and SWOT analysis, complete with the necessary research, in order to present the company shareholders with a piece of good business advise.

Each team should choose a ‘case’, which is based on an actual situation and highlights some of the main issues facing companies as they expand internationally: Should they invest? What should they invest in? How? When?  

Group Assignment II Team Presentations: Instructions (2)

Each group will give a 5min. PowerPoint presentation on the topic described above. See detailed instructions in section 2.2 (item 4) above.

This assignment is due in session 8. Deliverables (slides + 500 word

Executive Summary) should be uploaded to the Bb as ONE PDF document before the start of session 8. The file name must include the group number.

The investment decision: Team Presentations

Session 8