Free Essay Sample on Global Business Strategies: Achieving Global Competitiveness

Introduction

Businesses have to develop policies and strategies on how to compete globally. A successful business has been able to develop strategies guided by policies that outshined those of their competitors making them prosper globally. However, many factors affect the process of making policies and strategies that will drive the business to become globally competitive. These factors include social, economic, cultural, and human capital profiles. All these factors among others affect the development of policies and strategies that promote effective global competition. This paper investigates social, economic, cultural, and human capital profiles and how they influence the development of business policies and strategies that promote effective competition in business in a global context.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Social Capital Profiles

The social capital profile factor is the way people interact in and around a business to bring positive products that may help the business grow. These products of good social relations may include real products or services that influence how the policies of a business are made. When people interact in a good way in a business setting they are likely to come up with the best strategy that will enable the business to run smoothly. However, when people relate poorly, there will be conflicts and it will be difficult to come up with the best policies and strategies which play a key role in competition.

Social capital relations can also include networking within and outside the business. The capability of business staff to have good networking among themselves and their partners brings the advantage of winning the market and offering favorable competition with other similar businesses. Networking is one of the most important tools in marketing and other social relations in a business; it is part of the social capital profile which may bring a lot of impact to a business competition-wise and in other areas. High capital social profiles bring respect among members of a business and its partners too. On the other hand, the low social capital profile may ruin the competitiveness of a business and end up being outshined by its competitors. When there is poor social interaction in terms of communication and networking among the members of a business community and by extension to its partners. There will be a poor platform to come up with the best policies and strategies to compete with other businesses, especially in the global context. It would be better to have other challenges in business than a low social capital profile.

Economic Capital Profiles

Economic capital is another factor that determines the competitiveness of a business. Economic capital can be defined as the least amount of money that a business can survive (Garcia, Martín, et al, 2018). Every business has a different amount of capital that needs to stand at the time of its low moment in terms of capital. A larger business will have a higher economic capital profile than a smaller business. The economic capital surges or drops depending on how the business if fairing, if a business is experiencing losses, the business capital will drop and it will reach a point where the business cannot be able to run because it has been overwhelmed by its bills. The economic capital affects the influence of developing policies and strategies that a business needs at a particular point and time. When a business is running out of capital the policies will be developed in a way that will solve the capital problems that the business is facing and when the business is doing well, it will develop its strategies on how it can expand its territory and therefore offer a competition globally. In a state where the business is having a challenge with its capital, it will not be able to compete with other businesses because it will be struggling with a problem that is within them.

Cultural Capital Profile

These are assets that a business has and they are unique making people want to have them in the society or market (Manuti & Del Palma, 2017). They include many things such as styles of different cultures and tests of the market. Every marketplace has its preference according to its culture. Businesses see an opportunity there and develop various styles in their product or services to fit in with the culture. This also is a very important tool for every business in offering competition to companies with similar services or products. A business with a better taste of speech style, intellect, and education style among many others is in a better position to win the competition. Again every business has its cultural capital profile and they will be competing with those with similar cultural preferences. In case a business needs to compete with others in the field, it has to put in place strategies and policies that will heist its cultural capital profile. Just like the other different capital profiles the cultural capital profile also affects how the policies and strategies are made. All these strategies and policies are targeted at offering competition in a market where many businesses are trying to win the market too, therefore cultural capital is as important as other capital profiles too.

Human Capital profile

Human capital is the capability of the people in a company to offer special and rare skills that will help the company prosper. Human resources are one of the most important assets that every company should have (Freed, Noor, et al, 2016). Every company is always on the run looking for the best human capital that will help the company compete with other companies in a better position. Not every person has skills needed in a certain business, there are special people with the know-how and they are the ones that the company relies on to be the best. The human capital profile is governed by a special department of human resources in a business. This enables most businesses to have better management of their human capital. Unlike other capital profiles, human capital profiles rotate all around the world's economy. It is a very competitive resource and therefore a business can have it today and miss it tomorrow. This is because, with better pay, a business may attract the best human capital everyone else cannot have. However, this needs to be done carefully so that a business does not spend more than needed in human capital leading to little net profit. Human capital is also very dynamic, the more experienced a laborer the more valuable he is, and the more paid he is, a business may also choose to replace the laborer with a young person who is faster and cheaper. It is always a game of competition between the best and the cheapest human capital among businesses. This requires the best policy and strategy to win.

Conclusion

Conclusively, all four profiles play a major role in influencing business policies and strategies as far as competition is concerned. Every profile has its way of affecting the business policy and thereafter the competitiveness of a business as discussed in the paper.

References

Manuti, A., Impedovo, M. A., & De Palma, P. D. (2017). Managing social and human capital in organizations. Journal of Workplace Learning.

Fareed, M., Noor, W. S., Isa, M. F., & Salleh, S. S. (2016). Developing Human Capital for Sustainable Competitive Advantage: The Roles of Organizational Culture and High-Performance Work System. International Journal of Economic Perspectives, 10(4).

Garcia-Carbonell, N., Martin-Alcazar, F., & Sanchez-Gardey, G. (2018). Human capital in top management teams is seen through the lens of senior human resources managers. European Business Review.