International Business Environment

1. Global Business Environment
Prasanna Venkatesh

2. IMD World competitive Report

3. Highlights of Competitiveness 2014
• U.S – Economy, employment, technology & infrastructure.
• Switzerland, Singapore & Hong Kong – Exports, Business
efficiency & Innovation.
• Japan – weak currency improved competitiveness abroad.
• Malaysia, Indonesia, Thailand – falls due to political instability.
• China – falls partly due to business environment.
• India, Brazil, Mexico – slow investment growth, economy, inadequate
infrastructure, inefficient labor market and ineffective business
management.

4. Country Competitiveness – South Africa

5. Country Competitiveness
• Countries – different competitiveness
• Every country – dominant in some industries.
• Role of organizations and individuals in country
competitiveness.
• Country competitiveness – strategy and
decisions of MNCs
• How do country improve its competitiveness?

6. Country competitiveness
• Extend to which country is capable of
generating more wealth than its
competitors do in world market.
• It measures and compares the
effectiveness of countries in providing
firms with a environment sustains the
domestic and international
competitiveness of those firms.

7. Competitiveness of Singapore
• HDD Production – 70-80% of worlds production.
• HDDs – standardized & easy transportation.
• Driven by technical skills and operating characteristics
• Singapore – platform
• Seagate – Biggest assembling center.
• Attractiveness – Best workforce, productivity, worker attitude,
technical skills & legal framework.
• Strategic location – Asia pacific
• Advantages: most efficient financial institutions
• R&D Centre, Economic development Board
• 8 large scale industrial parks

8. How to improve competitiveness?

9. Country level competitiveness

10. U.S Competitiveness
• Basic science research
• Technology innovation centers
• Investment - $ 4577.5 billion (2013)
• Consumption – GDP per capita USD 45336
• Economic sectors – Manufacturing, Services, Mines, natural
GAS, IT & Infrastructure etc.
• Strong currency, Banking system, sound financial reserves

11. U.S Competitiveness
• Exports – US $ 1.579 trillion
– Machinery: $213,108,199,000 (13.5% of total exports)
– Electronic equipment: $165,604,449,000 (10.5%)
– Mineral fuels including oil: $148,426,743,000 (9.4%)
– Vehicles excluding trains and streetcars: $133,640,479,000 (8.5%)
– Aircraft and spacecraft: $115,380,944,000 (7.3%)
– Optical, technical and medical apparatus: $84,281,276,000 (5.3%)
– Pearls, precious stones, precious metals and coins: $72,830,232,000 (4.6%)
– Plastics: $60,836,970,000 (3.9%)
– Organic chemicals: $46,510,903,000 (2.9%)
– Pharmaceutical products: $39,742,717,000 (2.5%)

12. Industry level competitiveness

13. Switzerland Watch Industry
• Factor
– Quality – High quality reliable, accuracy, water resistance
and shock resistance.
– Physical resources – certain metals and minerals available
– Knowledge resources – specialized skills, specialization
– Huge capital base due to strong financial institutions
– Excellent infrastructure
– Best support service & knowledge resource
– Good export environment
– Free port facilities-geneva

14. Switzerland Watch Industry
• Demand conditions
– Sport, fashion, lifestyle
– Sophisticated buyer market
– Customer oriented – moving goal spot
– Size of home market
– Growth of market
• Supporting Industries
– Close relationship, joint innovation, Sharing technology
• Rivalry and Business policy
– Healthy competition-quality is key, sophisticated system
• Competitive advantage
– Evolving Technology
– Strong R&D & Collaboration from business value chain

15. Firm level competitiveness

16. Toyota's Competitive advantage
• Unique production system
– “Toyota production system” – Lean manufacturing
– Innovation practices – JIT, Kaizen, sig sigma etc.
– Great quality best prices
– Strong focus on R&D
– Extensive production and distribution
– Strong supplier network

17. Individual level competitiveness

18. THANK YOU