- 19 Marks
Question
a. When companies expand their business outside their home country, they will usually begin as an international company but may eventually develop into a global company.
i. Describe an international and a global company. (2 Marks)
ii. Explain in a tabular form FOUR distinguishing factors of an international and a global company. (8 Marks)
b. Many large companies are actively committed to reducing the environmental impact of their activities as a result of growing awareness of the subject matter. List SIX possible methods by which businesses might limit their negative environmental impact on the society. (6 Marks)
c. A sustainable business is any organisation that participates in environmentally friendly or green activities to ensure that all processes, products and manufacturing activities adequately address current environmental concerns while maintaining a profit. State FOUR distinguishing features of a green business. (4 Marks)
Answer
(i) An international company is a company with all or most of its production operations in a single country. Most of its senior managers are nationals of the country. The company sells its products in different countries through local sales agents or local sales offices in each country or using international sales representatives. A global company is a company with operations in a large number of different countries, making a similar range of products or providing a similar range of services.
| International company | Global company |
|---|---|
| Management makes strategic decisions for each foreign market individually. | Management develops worldwide strategies for all its markets. |
| Products are adapted and designed to the requirements of the local market. | The company produces core products, which are standardised for all markets and have minimal design changes for individual national markets. |
| Marketing (for example, advertising) is adapted in each country to suit the local culture. | There is a uniform approach to marketing in all countries, with only small variations. |
| Countries are selected as a target for production and sales entirely based on their potential for profitability. | Countries are chosen for their ability to contribute to the integrated global strategy. |
b. SIX possible methods by which businesses might limit negative environmental impact on the society. i. Improved energy efficiency ii. Investment in renewable energies iii. Sourcing goods locally to reduce transport costs iv. Investment in IT to make inventory control more effective – this should lead to less waste v. Investment in more efficient production technologies to reduce waste vi. Reducing packaging.
c. FOUR distinguishing factors of a green business. i. Incorporates principles of sustainability into each of its business decisions ii. Supplies environmentally friendly products in place of non-green products iii. Increasing awareness of climate change iv. Has made an enduring commitment to environmental principles in its business operations. v. Commitment to fair labour practices and community development. vi. Clear reporting on environmental impact and sustainability
- Topic: The Business Environment
- Series: MAY 2025
- Uploader: Samuel Duah