For your assignment you will need to identify 2 general environment factors that impacts the global economy using current events and how it has impacted a company. As we illustrated, the Coronavirus has impacted multiple global companies such as Startbucks, Disney, and McDonalds to seize operations. It has also materially affected a number of airlines, travel companies to rethink about interim strategies in the international marketplace. The trade war as another example has also impacted the soybean and pork commodity markets impacting global trade for food supply chain and the prices to international trade and end products.

QUESTION

From our first in class session we discussed about the global phenomenon of the geopolitical and pandemic events such as the Coronavirus, Tradewar, etc. that has a severe impact to the global economy and the corporations. We also discussed about the 4th industrial revolution and the role that Technology plays impacting the future of work , how organizations think about culture and connectivity to their customers, employees, and value chain.

For your assignment you will need to identify 2 general environment factors that impacts the global economy using current events and how it has impacted a company. As we illustrated, the Coronavirus has impacted multiple global companies such as Startbucks, Disney, and McDonalds to seize operations. It has also materially affected a number of airlines, travel companies to rethink about interim strategies in the international marketplace. The trade war as another example has also impacted the soybean and pork commodity markets impacting global trade for food supply chain and the prices to international trade and end products.

You will need to illustrate at least 2 recent examples of general environmental factors (regulation, geopolitical, financial, technology, demographic, etc.) and cite the 2 global companies from recent events with references.

Each student will also need to respond to another classmates posting via either agreement, debate, or other observations/insights.

You have 2 choices. You can write 2-3 paragraphs due to the above instrutions, or you can write it similarily to the example due to the instructions, but you will also need to write a comment with 1 paragraph.

Example:

One of companies I have decided to talk about for this week’s entry is Carnival Corp and how Australian’s wild fires and the Corona virus have reduced business in China and Australia.

Carnival Corporation is the world’s largest cruise ship company. With a reported 18.88 billion in revenue in 2018, and being the parent company of other giants like Princess Cruises, P&O cruises, P&O cruises Australia and many others which numbers surpass a million passengers per year is no that difficult to see why. However, due to the recent Australian fires that not only have affected cruises lines like Princes cruises and their Kangaroo island tour, but also other tours in areas that haven’t been affected directly by the fires but air pollution is too high due to all the smoke in the air. Carnival Corporation have repeatedly announce that they have been forced to reroute, delay, and sometimes cancel some of their trips due to the fires.

In a similar note Carnival Corporation has also decided to stop operations in china due to the Corona virus. In fact as of today 1/30/2020 one of it ships carrying 7000 passengers has been blocked at an Italian port due to suspicion that one of the passenger originating fro china started showing symptoms that resembles those who get the virus, leaving these passengers stuck there until it can be confirmed or not if said person has the virus.

To conclude I would also like to talk about the trade war and how it has affected the telecommunications giant Huwaei.

In simple terms Chinese companies are obligated to provide any information the government asks for without any objection, this could be consumers personal information, data,etc. This along with the increasing tension between the U.S and China was reason enough for the U.S to Ban U.S companies from working with Huwaei under the reasoning that they represent a ” national security threat” because the government could ask Huwaei for information about us consumers and officials and they would have to comply. This ban has affected Huwaei Great。

ANSWER

Impact of Regulatory Changes and Geopolitical Tensions on Global Companies: Case Studies of Huawei and Carnival Corporation

One recent example of a general environmental factor that has impacted the global economy is the regulatory actions taken against Huawei, the Chinese telecommunications giant. The United States government has banned US companies from working with Huawei, citing concerns about national security. The ban stems from the belief that Huawei is obligated to provide the Chinese government with any requested information, including consumer data, posing a potential risk to US consumers and officials. This regulatory action has had a significant impact on Huawei’s business operations and its ability to collaborate with US companies, disrupting its global supply chain and limiting its market access.

Another example of a general environmental factor impacting the global economy is the ongoing geopolitical tensions between China and Australia. The Australian wildfires, which ravaged the country in recent years, directly impacted the tourism industry, including cruise lines such as Carnival Corporation (Wilks, 2021). The fires led to rerouting, delays, and cancellations of cruise trips, affecting not only areas directly affected by the fires but also regions experiencing high air pollution due to the smoke. Additionally, the coronavirus pandemic further impacted Carnival Corporation’s operations in China. The company decided to halt its operations in China due to the virus outbreak, with ships being rerouted or delayed, and passengers being stranded in certain cases.

These examples demonstrate how regulatory actions and geopolitical tensions can significantly affect global companies, disrupting their operations, supply chains, and market access. It highlights the need for organizations to be prepared for unforeseen events and adapt their strategies to navigate through such challenges effectively (Liddell, 2022).

Comment

The examples you provided, showcasing the impact of Australian wildfires and the coronavirus on Carnival Corporation, are indeed relevant and demonstrate the influence of general environmental factors on global companies (Kreutz et al., 2023). The wildfires and the pandemic have undoubtedly disrupted the company’s operations, leading to rerouting, delays, and cancellations of cruise trips.

 These events highlight the vulnerability of the tourism industry to natural disasters and public health crises, emphasizing the importance of risk management and contingency planning for companies operating in this sector. Additionally, the halt of operations in China due to the coronavirus outbreak illustrates the necessity for companies to assess and respond to geopolitical events that can impact their business, especially in international markets. Overall, your examples effectively illustrate the interconnectedness between general environmental factors and the global economy, and how they can affect specific companies like Carnival Corporation.

References

Kreutz, J., Heitmann, J., Schäfer, A., Aldudak, S., Schieffer, B., & Schieffer, E. (2023). Umweltfaktoren und ihre Auswirkungen auf die COVID-19-Pandemie. Herz, 48(3), 234–238. https://doi.org/10.1007/s00059-023-05178-2 

Liddell, P. (2022, December 6). The supply chain trends shaking up 2023. KPMG. https://kpmg.com/xx/en/home/insights/2022/12/the-supply-chain-trends-shaking-up-2023.html 

Wilks, B. X. (2021, January 4). Most Read of 2020: Bushfires Have Shaken Australia’s Tourism Industry From Head to Foot – Australian Institute of International Affairs. Australian Institute of International Affairs. https://www.internationalaffairs.org.au/australianoutlook/bushfires-have-shaken-australias-tourism-industry-from-head-to-foot/