INTERNATIONAL
BUSINESS ENVIRONMENT
European international
business environment
The periods of the
recent past has been characterized by significant attributes of development
that has resulted in the establishment of new markets. With the consideration
of this growth, the international boundaries have been integrated thereby
leading to the enhancement of international trade and cooperation between
various nations. The revelation has stated that markets have become global for
some of the goods and services. Analysis of the global trade data has shown
that the aspects of the global trade have expanded more than 6 times since the
period of 1950 (European Commission, 2004). With expansion to the external
territories, the business ventures have been expanded to consider the increase
in the external territories. During the aspect of expanding the national
territories, the ventures of international territories consider the aspects of
increased independence and interdependence between nations. Over the period,
the expansion into the international markets is normally faced with the
consideration of ideal challenges because of the changes in the business
environment. Some of the existing aspect of business environment that constitute
international business environment includes government policies, free movement
of capital, competition policies, regional policies and social policies. In the
wake of the above depiction it is beneficial to consider the attributes of the
significant changes in business environment with the expansion into the global
perspective. With regard to the establishment of the business environment, the
European market offered ideal features that are crucial for the conduction of
the business incentives (Buckley & Ghauri, 1999). The consideration of BP
for example, has been faced with the attributes of growth because the existing
policies are ideal for the attributes of trade and they enhance performance of
the business and Multinational Corporation in the economy.
With the attribute of
continued globalization, the European governments have realized that the
establishment of ideal environment will enhance participation of both internal
and external business incentive to initiate crucial, development. In this regard,
the consideration of developing crucial policies for trade is enhanced through
the consideration of then joint policy initiative that is involved with the
aspect of drafting the reining policies for development. Over the period, the
EU has been identified as largest market and this has prompted significant
increase in the attributes of trade. Upon this realization, the EU led the
delegation aimed at enhancing the usage of ideal policies to enhance conduction
of business both from within and with other external factors and this incentive
calls for the aspect of enhancing the existing polices (Clayton, 2002, Streeck &
Schmitter, 1991). The European Union has enacted the aspect of external trade
interests and negotiations with the bilateral partners including both regional
and multilateral agreements with the third world countries. The union has
stipulated series of policies to govern both internal and external trade and
this also helps in the aspect of regulating the prices of the commodities. The
government has enacted measures to ensure that malpractices in the economy are
not warranted and the existing agreements have regulations for countering the
aspects of unfair practices. Over the period, the establishment of world trade
organization (WTO) has continued to over see the practices that concern the
performance of the market and European has opted to be a member of the
organization t help in the provision of ideal environment of trade. In this
regard, the EU has crucial policies like the formation of customs union with
common external tariffs and common external trade policies (Clayton, 2002, Tenbucken,
2002). Some of the leading policies
enacted by the European government are the environmental policies that must be
observed by the multinational companies engaged in operation within the
European nations. The social policies adopted also have significant results for
trade in the territory these attributes leads to the consideration of free
movement of goods and other commodities.
The competition policy
Completion is an aspect
in the conduction of business that results in the quest for the market share.
Over the period, some companies have adopted the usage of detrimental
consideration to enhance an advantage over the other companies in the same
industry and this consideration has prompted the regulators of the European
union to implement competition polices with the aim of restoring order and corporations
in the market. Therefore, competition in the European Union involves the
concept of applying rules and observing the provisions of the rules. Some of the
provisions of the policy states that:-
Low price for all
The aspect of setting
up low prices for all the participants in the market is an important aspect
because it enhances the participation of the business, it leads to development
of he economy and further leads to the satisfaction of the consumers. At lower
prices, various companies will produce high quantities and attain economies of
scale and this is ideal for economic earnings.
Quality improvement
The consideration of
the completion policy is crucial because it leads to the development of high
quality of the production. The policy seeks to empower the market participants
to enhance quality because this will enhance increased completion which is intern
crucial for the establishment of the market share.
Innovation and choice
Provision of quality
services and commodities is one of the recommendations of the competitor
policy. This realization calls for the activities in the market participants to
identify crucial methods of enhancing performance and development of their
corporations and this incentive involves research and innovation thereby
leading to the attribute of new product generation.
Over the period, BP has
continued to be one of the largest participants in the market and it is listed
as the largest vertically integrated oil and Gas Company in the world and the
companies operations largely includes the attributes of exploration and
production of both crude oil and gas. In the aspects of production it is crucla
for the company to conduct the aspects of marketing natural gas, natural gas
liquids and power (Richardson, 2001). The location of the company and its
headquarters is in London. Over the periods the company has continued to
operate across the global nations because of the ideal polices that have been
implemented in the European market. The aspects of development of the nations
in the European nation have prompted the consideration of developing ideal
marketing and operational attributes. In view of this establishment, some of
the leading aspects of development for the organization have been highlighted
through the analysis of the strengths and weaknesses of BP oil.
Internal strengths of
the market and BP participation
One of the leading aspects
that have enhanced operations and performance are the attributes of dominant
market position across the globe and the conduction of vertical integrated
operations and finally the consideration of wide geographical presences (Webster,
1998). The analysis of the internal market has also revealed some series of
weaknesses that have enhanced the decline in crude oil and natural gas
production and the controversies and criticisms facing the country are the
ideal aspects that have continued to threaten the operation of the internal
aspects of the market.
The
consideration of the external markets and its influence in development of
policies
The development of the
external environments is composed of polices that are crucial for the
performance and conduction of business development. Certainly, the attributes
of policy enactment is beneficial for the nations and the entire markets and
this results in the consideration of employing the attributes of development
thereby leading to the increase in the operations thereby leading to the
increase in the international business.
Conduction of analysis
in the external environment is extremely crucial because it leads to the establishment
of the factors that have been enhanced by the formation of policies and that
are crucial for the consideration of development of the attributes of
development. The external factors consider the usage f the policies that the
European Union has established to aid the attributes of trade within the
economy and with the outside world (Pollack & Shaffer, 2001). Trade is vital for the development of
the economy because it enhances the aspect of exchange with the global nations.
This consideration results in the consideration of enhancing the attributes of
foreign earnings and it also encourages the realization of global peace and
consideration global developmental attributes.
Amongst the leading
concerns for the governmental policies initiated by the European Union includes
the attributes of increasing demand for natural gas in North America. Over the
period, the establishment of the reigning peace with other nations has resulted
in the consideration of enhanced business performance. The European Union has
been on the fore front on the quest to establish peace with the various nations
thereby leading to the establishment of business opportunities for the nations
and this consideration has helped enhanced the operations of BP in the external
environments (Pollack, 1997). The establishment of ideal international business
is extremely beneficial for the elements of development and establishment of
business opportunities. In this regard, the attributes of the rising demand for
refined products and petrochemicals in China is another incentive that
highlights the consideration of the organization towards adoption of ideal
policies. These polices have been considered to be the determining factors of
development because they helped to increase the participation of various
multinational companies across the geographical borders. Certainly, the establishment
of the multinational company BP is an example of how the policies can help influence
those aspects of operation because polices enacted has helped ensure the operations
of the company are significantly governed.
Other attributes of
polices enacted that have resulted in the generation of increased performance
are as a result of the key developmental strategies employed by the European nations.
There are asset of environmental polices enacted to regulate the operations of
the global companies and further ensure that environmental degradation is
adequately reduced. These aspects of environmental polices have ensured oil and
gas exploration projects and further enhanced the attributes of investment in
other alternative energies (Pijenburg, 1996). In reality, the exploration and
refining of oil and natural gas can be detrimental for the lives of the
citizens in the European Union and the governments must ensure that ideal
policies are enacted to govern the operations of these companies. The enactment
of these polices are aimed at ensuring increased processing of the final
products realized from the exploration. Therefore, the companies must certify
the required regulations and polices to operate in the EU.
Environmental
regulation policies enacted in the European Union has been of immense benefit
because it has helped in the regulation of the companies because it ensures
that companies that are not able to certify the given environmental conditions
are forced out of business. The implication of these environmental regulation
polices is crucial because it highlights one some ft he policies that result in
the attributes of development and depravities resulting from the aspects policy
enactment. The other factor that has also been of significant influence is the
aspects of reigning instability in some of the oil producing regions. The EU
has initiated ideal polices to ensure that correctives measures are put in
place to overlook the attributes of development and the consideration of
development of the nations. Certainly, polices enacted by the European Union
has been extremely critical in enhancing performance and safety of the European
citizens (McCormick, 2001). In this regard, regulation polices are immensely beneficial,
for the aspects of trade. in the wake of the rising competition form other
companies in the market, there is the need for the considers to be protected
and this is done through the attribute of setting minimum prices for all the
participants and this forces the
competing firms and corporation to compete on the basis of quality provision.
This incentive is ideal and has enhanced increased economic development because
the development of the competing firms leads to the development of economies of
scale and further results in the consideration of increased economic earnings.
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