The Contextual Factors for Business Process - MyAssignmenthelp.com

Question: Discuss about The Contextual Factors for Business Process. Answer: Introduction According to a report by Australia and New Zealand Recycling platform Australias e-Waste management system is 10 years behind by that of Europe, Asia and New Zealand(Cormack, 2015). This means that many precious metals are being wasted and hazardous metals like lead, arsenic and mercury are being sent to landfills. This practice not only harms environment but also leads to wastage of valuable metals. E-Waste or electronic waste is any waste device that needs to connect to power supply in order to work(Australian Bureau of Statistics, 2013) and e-waste management is segregating non usable and reusable parts and refurbishing them into new products. As a result of these findings Australian Government has come up with schemes and acts to encourage recycling and reuse of electronic equipment. Many new enterprises have entered the field of solid e-waste management to which big organisations or households can outsource recycling of e-waste. In this report, benefits and challenges posed by G lobalisation on solid e-waste management business are discussed in detail. E-Waste and E-waste Management E-waste is a fastest growing type of waste. Most of the e-waste is sent to landfills through which the hazardous substances enter the environment. Australian government has introduced schemes under which households can drop off unwanted computers and televisions at collection centres from where they can then be taken for recycling and refurbishment(Australian Bureau of Statistics, 2013). Business Idea: e-Waste management This e-waste recycling solution provider based in Australia will cater to business and households for their e-waste recycling requirements. Given the schemes and benefits offered by Australian government to such green organisations this start-up will have supportive external environment. But there are some contextual factors like socio-political, economic policies and Globalisation which affect the feasibility of business plan. In this report, both challenges and potential benefits of globalisation on this business plan are discussed. What is Globalisation? Globalisation can be defined as interaction between people and countries which leads to flow of money and exchange of ideas and culture across geographical boundaries(Passaris, 2006). Today no business is untouched by impacts of globalisation. Globalisation offers benefits as well as poses challenges to businesses all over the world. On one hand globalisation has increased competition for local businesses but on the other hand it has also enabled easy exchange of technology and information. As a contextual factor Globalisation impacts both external and internal context(Kronsbein, Meiser, Leyer, 2014). Benefits of Globalisation to e-Waste recycling Never-ending supply of electronic products: Globalisation and innovation have introduced large number of electronic products to everyones lifestyle. Almost 20 million electronic items are lying unused in Australia today(SUEZ, 2018). This means that for a start-up there are lot of ways to get started and continually receive business from institutions as well as households. Technology Entrepreneurship: Globalisation offers opportunities for new ventures to engage with large multinational corporations. These kinds of tie-ups help in fostering technological innovations in start-ups(Prashantham, 2016). New ventures can also take the benefit of development of new technologies in this field. Additional sources of funds: New ventures can pitch their ideas to investors from across the border. In this way globalisation has opened many new sources of funding for start-ups. Generally, the idea behind such tie ups and investments is to enter a new market with the help of a local business. This way the start-up gets funding and the MNC can enter new markets, win-win situation for both. Talent acquisition: For start-ups it is important to have qualified individuals on board who can work on specific technologies. Instead of fighting to acquire talent in local market start-ups can aim at sourcing individuals from outside the geographical boundaries. In case the new organisation plans to set up operations abroad such individuals prove to be great help(Michalski, 2015). Suppliers and service providers: Legal and financial services are being outsourced since a long time now and organisations have become familiar with it. But, outsourcing of hardware supply chains is a new trend for start-ups. This is happening mainly in case of technology transfer or to break oligopoly in local market(Michalski, 2015). Potential Challenges posed by Globalisation Outsourcing to developing countries: Today most of the e-waste is being exported to developing countries like the Philippines, China, Thailand and India. It is mainly due to cheap labour and low occupational health and safety standards. This practice by IT firms to export their e-scrap can pose major threat to business. Basel Convention, an international agreement, adopted by UN to keep a check on uncontrolled movement of hazardous wastes to developing countries( Australian Bureau of Statistics, 2006). Different environmental Laws for each country: Entering and growing in international markets can be restrained due to difference in environmental laws in different countries. There are lot of uncertainties in government policies regarding solid waste management this leads to reluctance by investors to invest in waste management projects. But, with new technological developments in solid waste management industry will certainly help in addressing this issue( Research and Markets, 2017). Presence of subsidiaries of big waste management companies: Globalisation has given the opportunity to operate beyond geographical boundaries. Large organisations, on one hand, have benefitted from this feature of globalisation; on other hand, small organisations, like the one in question here, face major issues in getting business. This is mainly because large organisations have technology and they operate in large scale hence, get cost benefit which will not be possible for a start-up. New ventures in such situations can adopt the philosophy of sharing the existing resources. This way the organisations who already own machineries can reduce the cost of owning the property and new ventures can economise their operations by paying the rent for machinery instead of buying it(Bylund, 2015). Transfer of funds: Start-ups work on small margins for initial few years. Suppliers in global marketplace impose lengthy payment terms which are not a big issue for larger companies but poses difficulties for small businesses operating on fewer margins. Another major concern is volatile exchange rates for currency(Lobel, 2016). Costs: Doing business in another country increases. Although there is internet for marketing and reaching out to global markets but many taxes and fees applicable on offering services or goods in a different countries is very high. And in case of competition posed by multinational companies cost will rise due to extensive marketing activities required to generate business and avoid losing business to MNCs. Managing cross border HR: Employing and managing Human Resource in geographically distant location can pose major challenge. To employ someone to manage operations abroad requires tailoring of recruitment, training and retention processes to suit the regulations of that particular country(McKinsey, 2012). Conclusion Globalisation is a double edged sword. It has its benefits as well as challenges for both new and existing organisations. From the point of view of solid e-waste management globalisation has proved beneficial in bringing in new technologies to treat the waste, advancement in IT has ensured continuous flow of out-dated electric goods which translates into continuous flow of business for this new solid e-waste management firm. But globalisation has also posed challenges of completion from multinational corporations who have already established themselves and have achieved economies of scale; to combat this issue new venture can rent the assets owned by these MNCs and gain the expertise without investing. Today most of the e-waste generated by IT firms is auctioned and shipped to developing countries, but with emergence of new technologies and involvement of government in encouraging recycling now the attitude of such organisations must change. To conclude, it can be said that globalisa tion impacts an organisation both internally and externally. In this case, competition, e-waste trafficking, environmental and political policies can be considered as external dimension of globalisation and strategies developed to face competition, acquiring new technologies and talent are internal dimensions of globalisation. Bibliography Australian Bureau of Statistics. (2006). SOLID WASTE IN AUSTRALIA. Retrieved January 3, 2018, from www.abs.gov.au: https://www.abs.gov.au/ausstats/abs@.nsf/Previousproducts/4613.0Feature%20Article252006?opendocumenttabname=Summaryprodno=4613.0issue=2006num=view= Research and Markets. (2017). Global Solid Waste Management Market - Analysis and Forecast (2016-2022). Reasearch and Markets. Australian Bureau of Statistics. (2013). ELECTRONIC AND ELECTRICAL WASTE. Retrieved January 2, 2018, from https://www.abs.gov.au: https://www.abs.gov.au/ausstats/abs@.nsf/Products/4602.0.55.005~2013~Main+Features~Electronic+and+Electrical+Waste?OpenDocument Bylund, P. (2015). The Top 3 Economic Challenges Facing Entrepreneurs in 2016. Retrieved January 3, 2018, from www.entrepreneur.com: https://www.entrepreneur.com/article/253473 Cormack, L. (2015). Australia's e-waste disposal system 10 years behind rest of the world. Retrieved January 2, 2018, from https://www.smh.com.au: https://www.smh.com.au/digital-life/digital-life-news/australias-ewaste-disposal-system-10-years-behind-rest-of-the-world-20150327-1m9kwj.html Kronsbein, D., Meiser, D., Leyer, M. (2014). Conceptualisation of Contextual Factors for Business Process Performance. Proceedings of the International MultiConference of Engineers and Computer Scientists, 2. Hong Kong. Lobel, B. (2016). Payment challenges for multinational businesses. Retrieved January 3, 2018, from smallbusiness.co.uk: https://smallbusiness.co.uk/payment-challenges-for-multinational-businesses-2519416/ McKinsey. (2012). The global companys challenge. Retrieved January 3, 2018, from www.mckinsey.com: https://www.mckinsey.com/business-functions/organization/our-insights/the-global-companys-challenge Michalski, T. (2015). The benefits for startups with a global perspective. Retrieved January 3, 2018, from www.techinasia.com: https://www.techinasia.com/talk/the-benefits-for-startups-with-a-global-perspective Passaris, C. E. (2006). The Business of Globalization and the Globalization of Business. Journal of Comparative International Management, 9(1). Prashantham, S. (2016). When globalisation meets entrepreneurship it can be a force for good. Retrieved January 3, 2018, from theconversation.com: https://theconversation.com/when-globalisation-meets-entrepreneurship-it-can-be-a-force-for-good-64415 SUEZ. (2018). E-waste Recycling. Retrieved January 3, 2018, from www.sita.com.au: https://www.sita.com.au/commercial-solutions/resource-recovery-recycling/e-waste-recycling/