About Global Business

High School ・Business ・APA ・5 Sources


Global business is an international exchange where a company does business in numerous countries worldwide. There are many agencies across the world today that are widening their business to slash consumers' interests and desires across the market share (Ferraro, 2017). However, they face economic, political and even cultural challenges in different countries. In this paper we will advise Ravi on the dynamics of the Zip-6 sports drinks industry and how the organisation's foreign markets can be strengthened.The research also will focus on Lebanon as the business environment which Zip-6 sports energy drink corporation is situated.

The main types of financial risk which Zip-6 corporation faces  in its day to day operation in Lebanon are as follows, strategic risk, compliance risk, operational risk and reputational risk (Ferraro, 2017).  The decisive factor will affect the Zip-6 sports drink company since most other smaller companies will begin offering the same product to the market, making the organization ineffective. The new agencies will shift the attention of most customers’ demands and the market stability forcing the company to be disabled in meeting its strategic goals and standards. Some of the countries such as United Sates have come up with cheap and quality sports drinks killing the market demand for Zip-6 sports energy drink. Furthermore, Ravi has to establish a unique product for his customers better than his competitor’s offers. Ravi also needs to reduce the price of the product to meet the current demand of the customers in different market environments. However, Zip-6 sports Energy drink Company also need to concentrate on regions with lower customers and expand its services.

Zip-6 sports energy drink also faces the financial risk of compliance; this is a type of risk which occur when the laws governing a country or business changes. Since the business has expanded to a more significant level, it finds it much harder to comply with the newly established rules which are laid by the government services. The changing of the laws has led to different structural and administrative roles in the associated economic structure. Furthermore, changing of rules in the country also plays a significant role in determining the organization financial stability. Most of the nations which the product is delivered have different business laws which have to destabilize Zip-6 drink Energy Company growth. Ravi needs to improve his organization by copying and abiding by various requirements of the globe to achieve his organizational goals. Since the company targets more countries as its potential clients to efficiently supply its product, it is much harder to meet the laws of the nation. As an investor, Ravi is expected to learn different statutes and practice them in its corporation.

The corporation also faces operation risks since unnecessary procedures failures are occurring on the corporation day to day tasks. However, the operation risks may result from different departments such as personnel management, administrative services, and the government services at large. The operation is one of the most dangerous threats which have affected operation systems of most organizations in the world today. Operation risks have made most of the customers to have adverse reactions to the products delivered by the corporation.  Zip -6 Energy Drink Company faces this challenge based on his employees and administrative working services. As the manager and the owner of the company, Ravi should be in the forefront in fighting for his company to adopt an active operating system (Hill, 2017). The leading cause of the problem began when they allowed Nils Young to be incorporated in the organization shares. Furthermore, by introducing other participants to the company services, there are more challenges from the operating systems which are entered into the management system of the association.

Most corporations in the world today face the financial risk challenge; this refers to the flowing of money in the organization system. Though, the above factor may be caused by political, economic and cultural objectives of the organization welfare. The rate of money flowing out of the company management system has increased in relation to the year 2006, where the inflation rate expanded (MacKenzie, 2017).According to the statistics the organization faces the challenge of revenue rates fluctuations. Since the corporation targets the international markets as their primary market for its products, this makes it more difficult to cope with the constant fluctuation rates in the rate of currency among the countries. Politics also have played a significant role in controlling the financial status of the company. The political instability of Iran has led to the collapse of shipment of the herbs used for the manufacturing of the energy drink product. The result of the above move led to degradation of the company economic stability. Ravi as the managing director and the owner of the company should be in the forefront in looking for the currency rate which suits his product financial stability. The organization should be ready to meet the currency rates of the countries which they target in the market. Furthermore, Ravi should have an alternative supply of the herbs just in case they run out of amount in their company.

Finally, reputation risk is one of the most common dangers in most organizations in the world today. Zip-6 energy sports drink has in one way or the other damaged its reputation to the faces of its customers. The above factor has made most of the customers to choose the other corporation’s product rather the company’s product. Ravi is required to be in the forefront in advocating for change in the reputation of the company services. The reputation change relates to employees, management team and the product delivered in the market at large. A study which was done indicated that more than 80% of the organizations have collapsed due to their weak reputation mechanisms. Since the company targets a broader market for its product in the market, it is advisable for the managers to improve the brand of their products and the quality of the product to meet the customer’s desires and preferred choice in the market (Kasemsap, 2017).  Lebanon is a very complicated country based on the political and economic dominance of its operation. Ravi is expected to cope the market trends of the country market stability and come up with a systematic plan for the company operating system.

Most organizations in the world today faces varies economic, political and cultural challenges which in one way or the other may lead to a collapse of the organization growth and development. According to a Zip-6 sports drink, Ravi has to adopt the following measures and control the economic instability that the company may be facing. Lebanon is a unique country compared to most republics in the world today; this is because it has no adequate resources for a productive business environment. The above risks should be addressed and emulated by the managers of the company to develop his organization outlook structure systematically.


Ferraro, G. P., & Briody, E. K. (2017). The cultural dimension of global business. Taylor & Francis.

Hill, C., Hult, T., Wickramasekera, R., Liesch, P., & MacKenzie, K. (2017). Global Business Today Asia-Pacific Perspective. McGraw-Hill Education.

Kasemsap, K. (2017). Mastering business process management and business intelligence in global business. In Organizational productivity and performance measurements using predictive modeling and analytics (pp. 192-212). IGI Global.

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