Question

Choose an organization that is involved in International Business and discuss the various activities involved in International Business, explain clearly the implications of political and economic factors. Discuss factors that contribute to the success of the chosen organization in the global environment..

1) Introduction Write an introduction about the chosen organization (vision and mission, goods and/or services Offered, branches locations, and the main financial data during the last three years)

Body / Question 1) Explain why this organization engaged in foreign direct investments outside the national borders.

Body / Question 2) Discuss the determinants of competitive advantage for the chosen organization.

3) Recommendations, Conclusion, and References.

1) Important findings and results must be mentioned briefly.

2) You have to mention all references used in your assignment.

Answer 1

Vardhman group of companies

Introduction: It has been established in 1962 with the opening of spinning and general mill in India. Now it offers different products and businesses such as yarn, fabric, thread, fibres, garment and steel.

It has global alliances with American & Elfird Inc. USA for sewing thread: with Kyung Bang, South Korea for yarn:Ttokai Senko, Japan for fabric dying and finishing: Nihon Sanmo, Japan for fibre & yarn dying and many other global alliances to expand its businesses globally.

Vision of company: Firmly established in values and manufacturing world class-textile.

Mission: Company has aim to become a world class textile business organisation manufacturing wide range of goods for the textile market at global level.

Branch location- Vardhaman group of companies, Shop, No, 3, C-Wing, mumbai, Maharashtra-400022.

Financial data: Company has earned revenue of Rs. 18,693.87 L in 2017 and in 2016 it was Rs. 5,183.95 L.

Company is involved in competitive textile business,To survive in the competitive environment, it provides its products at competitive cost.It was not that easy to manufacture product at lowest cost, so it has decided to expand its business in the international market in 1992 and for earning more revenue it has started dealing with the global brand such as M&S,H.M, Hugo Boss,Zara, Ralph Laurent, Calvin klein etc. So, it has engaged in foreign direct investments outside the nation to become cost effective, to enjoy the economies-of-scale, effective and adequate capacity utilisation, to achieve the fast product switch.

Main determinants of competitive advantages are innovation, competitive cost, maximum capacity utilisation for that company has opt the option of global alliances in international market and started exporting its products, it also deals with various international brands. Economic and political environment: It is very necessary for any organisation to deal with the economic and political environment to survive in the international market. Management develop the effective international strategies to deal with the economics of international trade .Its main focus is on the making maximum revenue through absorbing the costs of global trade.It follows the different strategies for different regions such as European Customers pay less prices for imported products and more prices for the products that are produced and exported by their country.So, company has gone for the alliances in Europe to get the better price for their goods.Company has alliances in the U.S with the objectives such as to improve the quality of their products, to get the better technology to utilise their maximum capacity in organisation.It helped the organisation in international market.As with the alliances at global level it helps the organisation to deal with the local political matters and taxation policies.Various local companies at global level with which the company deals for various business activities the help in dealing the global political environment.

Conclusion: As we have seen that company has started its operations with a opening of small business a pinning mill and with its vision it has expanded its business internationally and also has achieved success through efficient global strategies to deal with the economic and political environment in global market.