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Introduction

The term global strategic management has emerged from the concept of globalization as well as its implications on the organisational world. Today, with development of technology and rise of globalisation, landscape of corporate business have changed drastically (Roh, Hong and Min, 2014). In order to gain competitive advantages, companies now tend to recruit best talent employees, change operating models and seek to take business on global level. This report is going to compare and contrast two companies on the basis of opportunities for developing CSR initiatives and innovations. For this process, Volkswagen and General Motors is chosen that deal in automotive industry sector. Both companies are served auto-mobile and commercial vehicles as well as giving a tough competition to each other. In this regard, present assignment highlights current CSR initiatives and global strategies of both organisations for enhancing success of business.

TASK 1

Comparison of two organisations on the basis of external business environment and dynamic capabilities

Global strategy can be defined as process by which a company can take its business on international market. This concept guide organisations for introducing globalisation within business and allow to sell products on global level (Berry, 2014) . In other terms, corporations employ such strategic management to reap opportunities of trading in other countries. For this process, it assists companies to operate business in a mixed set of economies and design effective strategies which encompasses all of them. It shows that goals of business are needed to reflect the market potential and growth rates as well as aligned the same with overall vision also. In context with Volkswagen, it is an automaker company of UK which has established in 1937. It is considered as the largest organisation in auto-mobile industry in terms of sales that serve vans, trucks and buses etc. in many countries. Currently, it has near about 120,000 employees who are higly skilled and experienced in giving out best production output. This corporation is known for its highly innovative commercial and auto-mobile products which give high satisfaction to customers.

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But due to high competition in automaker industries where many companies dealing in same marketplace with same products, sales performance of Volkswagen also decreases. It has various competitors in this field who have launched amazing vehicles in same marketplace to avail profitability. It includes BMW, General Motors Ltd., Audi and more, which are considered as largest organisations of UK in auto-mobile manufacturing sector. Among these companies, General Motors Ltd refers to one of the biggest competitor of Volkswagen. This corporation has found its business in 1908 and serve products in more than 37 countries. In terms of sales, in 2017 it has sell near about 10 million vehicles through which high profitability has gained by this company. Along with this, approximate 180,000 number of employees are currently working in its near about 396 locations. Therefore, it shows that this corporation gives a tough competition to Volkswagen which adversely its sales performance.

For introducing globalisation within business, it is required by organisations to develop effective strategies. They should design proper business plan which include policies, resources and procedures to take company in international marketplace (Peng and et. al., 2017). Both companies viz. Volkswagen and General Motors Ltd. operate their businesses in many countries and gain high profitability. There are many factors present in business environment which impact on operational activities of international organisations. It includes political stability, economical fluctuations, environmental laws, social concern and more. Thus, a comparison is made below that describes dynamic capabilities of Volkswagen and General Motors Ltd to deal with such situations:-

PEST analysis: It helps in analysing the factors of external environment of a particular company  which impact on operational activities. Generally, there are four key factors that affect business organisations – Political, Economical, Social and Technologies.

Basis of comparison

Volkswagen

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