Management Analysis Of An International Company

Select two countries from the following options & they must be a different country to where you live or your home country if you are an international student):

• Option 1: Australia and South Korea
• Option 2: The United States and China
• Option 3: Germany and Japan
• Option 4: The United Kingdom and Malaysia 
• Option 5: Russia and India

The market growth opportunities for companies are increasing rapidly. The organisations have started operating at a global level, and it makes the operations more challenging for the companies. The business environment in every country is entirely different, and companies need to be adaptable accordingly(Morrison, 2011). This piece of work is dedicated to understanding the business environment of two countries that has a huge influence on world business activities. The chosen countries for a particular report are USA and China. 

This essay has included a comparative discussion about the external environment of these two selected countries and its implications for international managers. Furthermore, the essay also shed light on the language barriers that can be faced in the international environment and how such barriers can be handled. With the help of the current report, the decision making of managers in the international market can be enhanced as it provides insight into the international business environment. 

It is prevalent that none of the organisation can apply a single management strategy in each and every country. For effective global management, there is a need for gaining proper learning about the culture of a country (Julian, Kolari, Hise, Bierman, & Smith, 2016). The same principles applied to for USA and China as well. International managers need to adopt different approaches while operating in these two countries. 

The comparative external environment analysis for USA and China includes:

• Political or legal factors: The political environment in the USA is highly flexible. Due to the capitalist economy, the businesses in the country nourished effectively. The political interference and interventions are very low until and unless, a company do not avoid with the legal factors(Julian, Kolari, Hise, Bierman, & Smith, 2016). The election system in the country is also fair and transparent. 

On the contrary, in China, the political environment is influenced by the socialist economy where control on business is directly in the hands of the government. In China, it is not easy to make decisions and implementing them at the country level. Further, the difference between the central government and local government is also an issue that causes political risk. The companies found it tough to take their decisions as the governing body is not clear to them.

• Economic environment: The economic environment is never an issue in the USA due to stabilising economic situation. The people of the country are flourishing; their per capita income is also high, and most significant the people of the country are economically stable(Hamilton & Webster, 2015). However, after the recession, unemployment was one alarming factor in the US economy. Still, now it is under control. When it comes to China, the country is showing tremendous economic growth in terms of the exchange rate, export, currency stabilisation and generation of employment(Kerr & Perdikis, 2014). The FDI ratio in the country is very high, which shows the positive sentiments of companies in the Chinese market. Another fact is that most of the country operates in China just to serve Chinese people rather than exporting it back. But economically in China, the major issue is that wealth is highly centralised to a certain group of people. Not every person living in china is economically independent.
• Social environment: In the USA, the social and cultural environment is rich(Hamilton & Webster, 2015). The issue of in-country is related to the ageing population. The amount of young age people is very less in the country. It is one factor which is causing labour shortage for the companies. The major factor that attracts foreign companies to enter in China is its population. However, this factor is again problematic due to unequal distribution of wealth. The major chunk of the population does not have access to a quality life, and it causes trouble in accepting the lavish life and luxurious products (Morrison, 2011). However, slowly and gradually, the situation is changing. However, the outlook of people towards foreign products is changing, and it can be seen as an opportunity for foreign firms.