Students across the world pursue an MBA to understand the overall functioning of a successful business and the market trends. However, with time, the methods of running different business operations are currently changing faster than what a curriculum can typically keep up with. If you wish to stay updated with these changing trends, studying at the best MBA college in Bangalore is a necessity alongside learning how technologies, sustainability pressures, geopolitics, and cross-border commerce influence business strategies and operations.
Impact of Digitalization
Rising dependency on digital connectivity is slowly eliminating the need for the physical presence of many individuals. Such digitalization has changed how companies operate, reach their customers, and compete with others in the global market. In the present time, businesses use digital tools not just for lowering their costs but also to enter new markets faster and serve customers more efficiently.
Rise of Digital Business Models
Companies that are majorly shifting to digital-first models include those that have digital platforms available on subscription or those that offer online services. Such a model reduces the requirement of businesses to set up large office spaces and enables them to work from their preferred location.
- Several SaaS companies use cloud tools to expand their operations globally.
- Many digital platforms work to test the customer demand at a location before making their full-fledged entry into the region.
E-commerce and Cross-Border Trade
By embracing an e-commerce model, operations have become easier for product-based businesses located anywhere across the world to sell their products internationally. Consider you are running a fashion brand in a small Indian city. By embracing the e-commerce business model, you can ship your products anywhere in the world. However, in this model, a few difficulties arise in the form of:
- International taxation
- Shipping date approximation
- Return-product cases
Data Security and Privacy Challenges
Any digital platform that exists in the present time stores crucial data of the business as well as the customer. Hence, with digitalization, a company also faces the responsibility of protecting that data and complying with the data protection laws of its country. To fulfill this responsibility successfully, it is important for you to understand privacy rules, cybersecurity basics, and data governance.
Practicing Sustainability
With time, the focus of businesses has shifted to creating long-term value for themselves that shows a balance of profitable results as well as social and environmental responsibility. Hence, practicing sustainability in the operations is becoming more of a responsibility than a complementary effort.
Shift Toward ESG-Driven Operations
Before entering or operating in new markets, it is necessary for the operations of a company to be ESG (Environmental, Social, Governance) compliant. The ESG regulations are a major factor driving decisions like where companies invest, how they operate, and how they report performance. The efforts that need to be made to follow ECG regulations include:
- Reducing carbon footprints
- Renewable energy use
- Efficient waste management
- Promoting circular economy principles
Sustainable Supply Chain Practices
To improve transparency in their sustainable approach, companies also focus on their supply chains and possibly change them to engage in other ethical practices.
- Product-based brands track the source of their raw materials.
- Companies prioritize environmentally friendly processes and materials.
- Firms make Corporate Social Responsibility (CSR) a part of their core strategies.
Role of Artificial Intelligence (AI) and Automation
There is no department of a business in the present time that does not use Artificial Intelligence (AI), no matter whether you talk about marketing, supply chain, HR, finance, or customer service. When used properly, it improves decision-making and reduces manual work.
AI-Enabled Decision Making
When an AI tool is provided with a large set of data, it can properly analyze that data, spot certain patterns in a matter of a few seconds, and make accurate future decisions in accordance with those patterns. A few ways companies use AI tools in decision-making are:
- Predicting market demand
- Design personalized marketing campaigns
- Enhance customer experience
- Streamline logistics and inventory management
Automation in Global Operations
In the present world of rising businesses and corporations, every corporate boss wants their company to work on automation. The benefits of going for automation include barely any errors, faster processes, and lower costs of operations. Taking such an approach reduces repetitive work and improves accuracy in global operations. There are several tasks in every sector that take too much attention and can be simply completed through automation, like:
- Logistics companies use automated systems to track shipments.
- Finance teams depend on automation to handle invoices, compliance checks, etc.
Globalization of Businesses
Businesses take the route of globalization in hopes of exploring new markets for their overall growth. While the approach was once large-scale and expensive, it is slowly turning into a flexible, digital, and partnership-based operation that makes expanding a business feel much easier.
New Market Entry Strategies
Rather than starting your solo, full-fledged operations, entering a brand new market in partnership with an already popular local brand is considered a safe trick by businesses in the present time. Steps like these are taken only after evaluating the business potential of a market and the goals of the company itself.
Managing Cross-Cultural Teams
When a company’s operations are running in different parts of the world, the teams across all the locations have to work remotely despite the barrier of time zones and cultures. While taking such an approach, the success of the operations depends largely on proper communication channels and cultural understanding, as well as leadership skills.
Global Supply Chain Evolution
The supply chain followed by a company is a major part of its efforts in globalization. The redesigning of supply chains in accordance with the company’s needs worldwide reduces the risk associated with the business and also increases resilience. The evolution of a company’s global supply chain includes:
- Diversifying suppliers
- Building backup capacities
- Using digital supply chain tools.
Influence of Geopolitics
When your business is working across different nations, there is no guarantee which country will change which of its rules at what time to make the functioning of your business either tougher or easier. The relations between different countries heavily drive these changes. Whether it be trade flows, investments, technology access, or supply chains, nothing goes unaffected by geopolitics between countries.
Impact of Trade Policies
All the countries follow different trade policies, like tariffs, export restrictions, import and export duties, and many other factors, which can change the dynamics of the market in just a few minutes. No matter which sector it is, every business is affected by trade policies in one way or another.
Political Risk Management
With time, any possible political risk is now equally impactful for a company as a financial risk. Hence, businesses need to undergo scenario planning and risk evaluation, and give rise to more diversified operations, all of which can help minimize the risks or any possible losses.
Shifting Global Alliances
Countries choose to form new alliances from time to time for purposes like trade, evolution of technology, and management of supply chains. Decisions like these are driven by various factors and influence your company’s operations in determining with whom it can partner.
For example, the global supply chains of electric vehicles (EVs) now depend heavily on alliances between Asia, Europe, and North America due to various factors.
How to Stay Updated with These Emerging Trends in International Business
With so many changes happening in the global market every day, the adaptability of an individual, along with staying up-to-date, becomes a key skill for an individual capable of running a business. To stay connected with relevant information, there are several ways for MBA students studying at a top MBA college in Bangalore to continue learning outside the classroom.
- Follow trusted sources like McKinsey, HBR, WTO, and WEF for verified insights.
- Build strong data literacy by understanding basic analytics and AI tools.
- Work on real projects that involve digital transformation or global operations.
- Stay in touch with your expert subject teachers.
Conclusion
There is a rapid transformation in international business operations, and only those who can adapt to the rise of technology and AI and practice sustainability can survive. Things like these are taught to students who enroll in the best MBA courses in Bangalore. With advanced knowledge of the overall functioning of businesses around the world in the present time, you can significantly boost career opportunities in consulting, strategy, finance, operations, and entrepreneurship.
Such opportunities that smell of success are only possible to come your way when you enroll at IZee Business School, one of the best MBA universities in Bangalore. We at IZee Business School, Bangalore, make sure that you achieve the highest quality of education possible through our programs such as MBA + PGPM, MBA in Business Analytics, and many others.
With the help of our faculty full of experienced individuals offering every piece of knowledge about business management, and at an affordable fee, too, our courses become some of the best MBA courses in Bangalore. Grab the opportunity to enroll at IZee Business School and give wings to your dreams of running a massive-scale business with success.
Frequently Asked Questions (FAQs)
Q. What are the recent trends in international trade?
The recent trends in international trade include the rise of the trade of services, growth of digitalization and e-commerce, and increasing supply chain resilience.
Q. What is the use of MBA in international business?
An MBA in international business teaches you about the sustainable growth of companies, building global partnerships, and promoting innovation at every step, targeted towards the audience of different regions.
Q. How has digitalization changed business?
Following a digitalization approach has made it easy for businesses to function remotely, enabled them to use digital tools and platforms for collaboration and communication, and given rise to flexible work arrangements.
Q. What is the role of artificial intelligence in international business?
In today’s world, Artificial Intelligence (AI) provides a lot of benefits to businesses internationally by improving decision-making, thinking of marketing strategies, and optimizing supply chains.
Q. Why is sustainability important in international business?
For a business to run anywhere across the world, its environment or its surroundings should not suffer. Keeping this approach shows sustainability in a company and takes care of the local environment, community, society, and economy.
