International Business Issues Harvard Case Solution & Analysis


Businesses today are operating in more interconnected and globalized world. The consumers’ perspectives and government policies are changing rapidly and leading the company to face multiple business issues and challenges in the future. The resources on which different firms rely become more challenging to access and more costly to operate. Moreover, the economic growth and wealth change leads the business to face the strains on infrastructure and natural systems. The international business will be confronted with the most complex web of legislations and fiscal instruments.

Today’s global business environment is more complex, uncertain, and fast-moving than ever before. The changing global environment, increased the level of competition in the global market. However, the relation between the international business firms and the natural environment is still controversial. According to the advocates of the world trade, international business play a positive role in spreading the environmental friendly technologies globally. Moreover, the management of the companies is proactive in their international activities.

However, due to global competition, there is an increase in international and environmental issues of multinational business, including Multinational Enterprisesand Small and Medium Sized Enterprise (SMEs). Moreover, the flows of goods and services from country to another have a greater impact to affect the environment. The international companies are competing to provide quality products and services at reasonable prices, to attract more customers and gain competitive advantage. Nonetheless, the increasing competition also has a greater impact in affecting the environment (Ivo Zander, 2014).

The globalization of business environment increases the number of multi-cultural interactions in the organizational workplace. Moreover, the business environment is continuously changing and evolving due to five reasons such as high competition, downsizing, aggressive cost management and management teams, and proliferation of 360-degree feedback system. Furthermore, it increases cross-cultural differences and conflicts among the employees, which leads to face multiple business issues and challenges. Therefore, the international business should focus on the major concern factors to save the organizational working environment and minimize the business issues.


The global environment provides opportunities for the international business to sell their products and services globally. However, this strategy leads the international business to face multiple issues and challenges such as cost-effective strategy, qualified employees and effective management teams, high competition and downsizing. Moreover, it increases the cultural differences, political and legal differences, the difference in currency notes, the difference in economics, change in language and tradition.

Furthermore, issues include trade restrictions in different countries, high lead time and shipping costs. Therefore, it is necessary to understand the business environment that creates a basis for competitive advantage and help the companies to survive in the marketplace. Moreover, it is also necessary to build ethical standards and multicultural management to stay in the competition. Furthermore, the international groups should improve the tax efficiencies and increase demand for greater transparency and environmental flexibility and align their legal and governance structure.


The business environment is the total situation of all forces that influence operations and development of the company. It is important to determine the forces outside of the firm traditional boundaries to determine the firm’s success. Force of business environment also helps the international business to use effectively the resources and capabilities and modify its strategies and management practices.

Global business strategies are highly influenced and determined by the international environmental forces. Therefore, it is important to understand and analyze the environmental forces that lead the company to face numerous challenges and issues. This analysis will help the international business firm to drive possible solution and recommendations to overcome these issues. Following are the important environmental forces:

Legal and Ethical forces

The legal environment includes government laws and regulations, international laws and institution, the legal system and legal provision of trade and investment that affect the operations of the international business and enforcement mechanism. Moreover, the legal issues include jurisdictions, taxes and securities and intellectual property. Furthermore, the legal issues also include issuing the business shares without the permission of the target country’s exchange commission.International Business Issues Case Solution

The ethical environment issues include employment practices, human rights, corruption, and pollution. Ethics are very important in an organization because they improve the relations and remove the conflicts among the employees and management. The Ethical issues also arise due to mismanagement of the senior managers that discriminate among the employees and creates an inflexible working environment. Moreover, the ethical issues include obligations of multinational firms, product safety and security, equal and fair prices, impact on social institutions and the fair return on investment (JB Singh, 2015).........................

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