Business analysis simply refers to the process of organized evaluation, identifying and understanding business needs and challenges, then followed by the development of productive solutions. As businesses grow, different factors accrue that make them change and adapt to environmental situations. I will discuss the factors that make businesses change their operations and also how they change over time. Furthermore, this paper converses on Embraer as a perfect example of a global business and a corporation, business forms and business ethics, and social responsibility.
How Businesses have changed over time
The business world has evolved over the years to create a better working environment and respond to external gravity. Immediately after the industrial revolution to the digital world, technology has been the determinant of how businesses would operate in the future. The introduction of computers, the internet, technical devices, communication systems, and data processing has been very fundamental in the business ground. The internet gave birth to e-commerce, changing how companies market and retail their products (Shankar et al., (2021). Businesses now focus more on strengthening their customer relations through; digital marketing, social media, influencer marketing, and the use of ads. Online marketing companies such as; Alibaba, Amazon, and eBay were introduced to reach a worldwide market. The evolution of business has affected both the manufacturing and customer service sectors.
Environmental Factors that Impact Businesses and Cause Them to Change.
Environmental factors often push businesses to revise their strategies to fit in the current market. Technological advancement has been one of the key purposes as to why the business field was forced to develop. For example, Blockmart, a retail business that operated its physical stores, was forced to develop websites that could be easily accessed by customers using their mobile phones. Economic elements like economic growth, inflation, and unemployment contribute widely to the pricing of commodities or reviewing their strategies. Currently, the world is facing an economic crisis and this has made countries experience inflation. Such challenges affect businesses negatively. Customer demands also grew making businesses expand in the provision of their products and services (Shankar et al., 2021). Additionally, better trade opportunities have risen over the years, enforcing new techniques and markets in the entrepreneurship sector. New products get introduced every day, and this makes entrepreneurs and businesses access new markets. The ability of a business to respond to environmental factors plays a vital role in determining its success.
Globalizalization is another crucial aspect that contributes to business advancement. Improvement in technology has made businesses reach global markets in delivering their products and services. Global business simply refers to commercial activities that encompass international trade and investment. Factors such as cultural sensitivity vastly help in ensuring that a business meets its global goals (Kohofiya et al., 2020). A business should adapt its products and marketing strategies to suit the preferences of a targeted customer. Technological and transport infrastructure assists companies to access various global markets simultaneously. Advantages of global business include a wider market, the opportunity to tap into resources not available locally, and diversification. Monetary risks and currency fluctuations may occur as immediate challenges for global businesses in various countries.
Global businesses also tend to face problems such as political instability in various countries, and cultural challenges where the products do not meet the customers’ needs and morals. Coca-Cola, Apple, and Toyota are some of the world-known companies that have succeeded in globalization ( Kohofiya et al., 2020). They provide unique products, making them outstanding and making high sales in the global market. Companies must strategize their business operation so they can venture into the global market. However, global businesses have an advantage of a wide market and availability of resources.
Business Ethics and Social Responsibility
They are two different concepts, but so crucial in the management of a business. For a business to succeed in its objective, these aspects must be considered by all members. They all emphasize a business’s positive impact on the society and environment apart from maximizing their profit. Business ethics refers to the standards and principles held by companies on conducting what is best for their shareholders and stakeholders (Ferrell et al., 2019). It involves all ethical and moral behaviors that should be implemented in a business. These traits include honesty, respect, and fairness. On the other hand, social responsibility in business refers to the need for business organizations to get involved in environmental and societal developments. Businesses must focus on improving the welfare of the community through providing employment, fairness in providing services, conservation of the environment, and supporting community projects. Business organizations that operate in line with these standards are seen to achieve a positive brand image and even attract more customers.
Patagonia is a real-life example of a company that has shown commitment to business ethics and social responsibility and finally succeeded. It is a clothing and gear company that has always shown its commitment to a transparent supply chain. Patagonia maintains a close relationship with its suppliers and ensures suitable working conditions and that they are paid fair wages. The company is also seen to conduct various environmental initiatives, such as ‘Worn Wear’, where society is encouraged to repair and reuse their products rather than purchase new ones (Ferrell et al., 2019). Such a move assists in reducing ecological footprints. Moreover, Patagonia normally donates a percentage of its profit to community-building projects. The company’s relationship with society is seen to grow every time, and profits keep growing all because of its commitment to business ethics and social responsibility.
Types of Business Forms
A sole proprietorship is a widely-spread form of business that is operated by many business owners. It is mostly common among small businesses. Sole proprietorships are usually owned by a single individual, running the daily activities of the business. The business owner is in control of the business and entitled to all the risks and liabilities. A partnership is a form of business where two or more individuals share the ownership of a single business. According to Pidun et al., (2019), a legal agreement must be put on the table to elaborate on how the business will be operated. Partnerships are further divided into two; general and limited partnerships. Partners have unlimited liability in general partnerships, while in limited partnerships, some have limited liability. They are accompanied by the advantage of bringing together a diverse group of business people and contributing towards the success of a business. However, when profits are not shared equally, some partners might feel to be unfairly treated in the business.
A corporation is also a form of business owned by shareholders. A board of directors is usually selected by the shareholders to oversee the corporation. Members have limited liability. A corporation does not dissolve when ownership changes (Pidun et al ., 2019). Corporations have an advantage over other businesses since they can acquire loans easily. The choice of one’s business depends on their business goals, business structure, taxation, and management.
Accounting, Finance, Financial Markets
Accounting is the course of recording, summarizing, and reportage of the financial transactions of a business. Its main objective is to ensure, proper financial information is delivered to the stakeholders. Accounting is further broken down into financial accounting and managerial accounting. Finance deals with money management, the discipline of money, capital assets, and investments (Reboredo & Ugolini, 2020). It comprises various measures of obtaining and utilizing funds to maximize returns and minimize risks. Public finance, corporate finance, and personal finance are the three disciplines of finance. Furthermore, financial markets include platforms where traders are provided with means to interact and trade financial assets, commodities, stocks, and derivatives. Financial markets include; the stock market, bond market, foreign exchange market, and commodity market. Financial markets work as the determinants of economic conditions and interest rates.
Accounting and finance play a huge part in the development and operation of a business. Accounting assists in a company’s decision-making since managers and other business staff rely on it to set goals and allocate resources for the business. Accurate accounting also helps in the calculation and reporting of tax. On the other hand, finance plays a huge role in capital management, risk management, and financial planning in an organization. Financial markets also play a vast role in providing and maintaining liquidity in the markets (Reboredo & Ugolini, 2020). They provide a space where traders can buy and sell financial instruments such as stocks and bonds. Financial investments are also facilitated in the financial markets since a platform is provided for investors to invest in a variety of assets, like stocks, commodities, and real estate. Financial markets contribute significantly to economic progress by ensuring that money flows to where it is required.
Empresa Brasileira de Aeronautica S.A (Embraer), is a multinational corporation based in Brazil that provides tremendous value in the design and production of aircraft and other related technologies. The company is a significant provider of aircraft to the military services of the US, Latin America, and Asia. Some of the military aircraft that it has produced include; EMB 314 Super Tunaco, and a turboprop light attack. Embraer was established in 1969 with assistance from the federal government. Its headquarters are in Pinheiros, Brazil (Dias et al., 2018). The foundation was built on the immediate need for technological transformation in the aviation field.
The company is focused on manufacturing and selling commercial, military, and executive aircraft up to date. It has grown to renown for the quality aircraft that it designs. Since its establishment in 1969, Embraer has produced some famous jets, such as E-Jet E170 and E190 (Teles and Dias, 2022). It is also involved in global business, including executive aviation. Embraer produces business jets, such as; Legacy series and Phenom. It provides reliable global aviation services in almost sixty countries in the world.
Embraer is a Brazillian company that operates as a corporation. The aerospace company is listed on the stock exchange market and it is divided among shareholders. It is an aerospace corporation that is publicly traded (Teles & Dias, 2022). Moreover, it is a company that works in line with societal ethics and legal standards. Embraer published code of ethics requires employees to work following every rule and ensure they follow internal principles. Ethics and integrity are the core of the company’s values making them provide the best to society. Under the UN global compact, the company is committed to promoting and respecting human rights, operating against corruption, working in eliminating environmental challenges, and ensuring no discrimination in employment.
The Brazilian Aerospace company is vastly involved in positively impacting society in many ways. The company is involved in various community developments such as; education, health, and infrastructure. Environmental sustainability has been on top of its list since it focused on manufacturing more environmentally friendly products. An example is the E-jets E2 series, an aircraft that is fuel efficient and reduces environmental emissions. It provides STEM education programs, especially in the aviation field to increase knowledge and employment rates in different communities. Ethical business practices have always been key in the company’s operation, transparency in the supply chain, and integrity in governance are upheld in the company (Teles & Dias, 2022). Embraer is listed in the stock exchange market and its shares are traded on the open market.
The evolution of the business sector has led to the expansion of many businesses, making them achieve their objectives. Aspects such as technology are the biggest contributors to such achievements. Businesses have gone global due to the elevation of infrastructure all over the world. Financial markets have also enabled businesses to run smoothly via the platforms created. However, when operating a business, ethics, and social responsibility is highly needed. A company such as Embraer has implemented all the required aspects in its operation, thereby maintaining its status and achieving its goals. A business should always review its strategies so it can be successful and obtain a positive reputation.
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