Globally, business has gone through its biggest transformation in the past year. The pandemic has certainly played a great role in reshaping operations in the corporate world. From initial shock to adaptability, the changes have ushered in big changes for each sector.
This blog will help you understand the different facets of these new models, explain why they are needed and how they will impact the business world.
As things resume post-lockdown, the new normal will certainly leave a lasting impact. It also means that international business will have to revamp itself through better and more sustainable models.
International business development was focused on creating an ecosystem that can support a flexible workforce and is more cloud-enabled. The vision was to create a more technologically-advanced and mobile structure, but executing it was not easy. Leaders were focused on making steady progress that would eventually take them there, but COVID-19 propelled that change at a greater pace.
Now, the focus is on creating international business models that can meet all odds and survive the new decade. This would require a long-term vision and addressing all the gaps that have surfaced as a result of the pandemic. From better means of conducting operations, to creating a flexible taskforce, and even looking into new supply chains, businesses will have to evolve their strategy to a whole new level.
Here are the areas where businesses will have to upskill to stay relevant in the coming times.
The crisis has made leaders assess and re-evaluate their business operations. Being adaptable is the only way to survive challenging times and hence new models have to work around this framework.
Introducing new software and technology for staff and integrating more accessible tools in daily operations is now mandatory for businesses. The usage of collaborative software during lockdown showcased how, in the end, technology will sustain your work. Every facet, be it operations, logistics, sales or any other department, will be re-defined in new ways. An understanding of International Business laws, cultures and policies of other countries is also important.
New supply chains
Production has become vastly impacted by the COVID-19 pandemic and this has been due to disrupted supply chains. Many countries that were dependent on certain nations for cost-effective supplies suddenly saw their operations brought to a standstill.
New international business models will focus on resolving this issue, allowing business owners to turn towards domestic markets or carry out operations in their homeland.
Due to the impact on the import of supplies and delivery of goods to customers, many companies are also seeking additional sources. This move will certainly have financial implications and tax consequences as new bases of conducting trade will originate.
Remote working is the new norm and many companies will have to adapt in the long- run to ensure that they face no hurdles in work functions. Also, new international business concepts will bring world markets closer, allowing for a flexible environment where remote working is encouraged and supported.
Professionals will be required to have skills in business communications, cross-cultural management and human resource management to be able to function in a dynamic work environment. Even contracts will become more flexible and will bear in mind additional risks and circumstances.
International business models for pandemic free world will come with a sense of social responsibility. Corporates will have to act with a lot more accountability and consideration towards society.
During the pandemic, many companies, like Vauxhall Motors and Dior directed their operations to helping people in need. They also demonstrated their appreciation for their employees, as tech giants like Microsoft ensured that employees who cannot work from home are still paid.
Even marketing strategies were aimed at generating awareness, rather than promoting goods and services. Hence, complex issues of a social and ethical nature will take prominence in international business models.
If you are keen to explore a career in international business and are looking for a course that can offer you greater insight into management in the global arena, then check out the BSc (Hons) International Business Management provided by GISMA Business School.
- This article was written by Nandita Kaushal and edited by Anisa C.