IMPACT OF INTERNATIONAL BUSINESS

The Impact of International Business on different Stakeholders of the Firm

The Impact of International Business on different Stakeholders of the Firm

Introduction

International business activities demand the adoption and implementation of a perspective that takes the implications of globalization into account. International business practices have changed the way markets operate since consumers now experience an increased level of accessibility that was never present in the past. As a result, organizations have to take their Porter's five forces models more seriously than their PESTEL models. This discussion will attempt to present an exploration of the impact of international business on different stakeholders of the firm.

Discussion & Analyses

The impact of international business on different stakeholders of the firm is bilateral. It is not only apparent on the international operations of the firm, but also apparent on the exposure of the firm to the operations of other firms functioning on an international basis. However, in both cases, the stakeholders need to be considered for the influences they experience. This is because of the fact that business practices over the ages have proved the direct relationship between the benefits to the stakeholders and the benefits to the organization (Scherer, et. al., 2009). Business management decisions that take international business into account are often of a nature such that they tend to have a ripple-effect. Globalization has driven business operation to a point where no single operation is isolated from another operation any more. This high inter-connectivity makes it unfair to expect the repercussions of a decision to remain limited to the intended scope.

Stakeholders need to remain confident of the organization's ability to perform. Facing off the impact of international business can bring forth unpredictable outcomes that the stakeholders may not always be in agreement with. As a result, it is essential for the business ...