Free Essay. International Business Review

Published: 2023-03-28
Free Essay. International Business Review
Type of paper:  Essay
Categories:  Energy Personal experience International business
Pages: 7
Wordcount: 1656 words
14 min read

Nuclear energy features the top four sources of energy in the world among hydro, coal, and natural gas. It is among the clean forms of energy available on the planet compared to that generated from burning fossil fuels such as coal, natural gas, and petroleum. These two factors make nuclear energy an essential form of energy in the world due to its contribution to the global supply. However, despite the significant contribution of nuclear power to the world, only a few countries generate it. The production of nuclear energy happens in developed countries due to the regulations that surround the process. Although this source has low carbon emissions, the amount of radiation resulting from its usage is significantly high. The nature of the nuclear industry is such that the supply of the materials used to produce energy occurs on an international platform. Therefore, the interviewee provided insight into the business and what it is like to conduct international business.

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The company that the interviewee works in has been in international business for 40 years. The root of this business has been purchasing materials from global suppliers. Some of the countries where these materials are obtained are the United States, France, Canada, the United Kingdom, Japan, Kazakhstan, and Russia. Recent additions to this list have been Australia and China. These mentions demonstrate the breadth of exposure to international business that is contained in the interviewee's company. The work environment ensures that the employees interact with various cultures and develop skills to thrive in a dynamic setting. Conducting business across all these nations provides workers with gainful experience of practicing internationally. The diversity of laws, policies, and cultures all blend to equip these professionals with the expertise required to serve effectively beyond their native countries. Also, the competencies ensure that the companies meet their objectives while they adhere to international standards of conducting business.

The interviewee has worked in the company for two years also has colleagues that have served for over three decades. However, despite the difference in service, they all make significant contributions to the company. As it is required in most industries, employees need professional qualifications. This way, the employees contain the necessary knowledge to handle the technicalities of a given sector and provide practical solutions to the various challenges that might arise. In an industry as critical as the energy industry, employees should demonstrate a high level of professionalism and strive to ensure that the correct procedures are followed at all times. Longevity in the career provides workers with the much-needed experience which culminates to expertise. Additionally, the years of experience help in the growth and development of the industry that is primarily driven by the advancement of technology. Another benefit of having long-serving employees is that there is consistency in the way processes are conducted.

Lesser work experience at the company has not deterred the interviewee from being of service. Although the interviewee has a background in alternative sources of energy different from nuclear fuel, being in the energy sector serves as an extension to the experience. In both cases, the procurement of materials mainly involves more than one nation since only limited countries contain these products. As such, staff require sound international relations skills to negotiate deals and to facilitate smooth transactions. During the two years of service, the interviewee has been actively involved in the processes of the company, mainly procuring oil. This process involves coming into contact with various nationals and negotiating activities that help in the process. The ability to successfully engage with business partners on an international level is an essential skill in the purchase of fuel that is used in the nuclear reactors.

Sourcing for fuel internationally is an intricate process that requires careful planning and foresight. This process resembles other business transactions whereby the parties involved need to ensure that they do not incur losses. Professionals apply their knowledge in the process to help optimize the procedures for the company. Also, the professionals assist in making crucial decisions that influence the success of the company. Therefore, the company hires a team of experts that can help it to plan and outline strategies for its success adequately. Part of the expertise that is required for a company conducting international business is to have good working relations with other countries that are involved both directly and indirectly. Once these relations have been achieved, the company then proceeds to conduct business smoothly in a favorable environment. Operating in such an environment promotes increased productivity and helps in the sufficient attainment of organizational objectives. Therefore, stakeholders and players involved in international business should aim to create a conducive working environment that enables organizations to operate efficiently.

In the interview, the respondent gave an account of what it takes for the company to procure the nuclear fuel from the supplying countries. One of the conditions for acquiring the materials is that the country providing the commodity should be in the supply chain of the material. Possible explanations for this condition would be for quality assurance, consistency of supply, and also to ensure that the country meets the various regulations involved in nuclear energy production. The personnel involved are, therefore, responsible for enabling the company to meet these conditions such that the laid procedures are not overrun. This way, the company manages to plan effectively and generate power steadily due to the presence of steady trade partners. Since the international market tends to be versatile, staff that form the team responsible for conducting the activities should be keen to remain apt for the dynamics that represent the business. The emphasis should be on protecting business interests while observing international laws and the various constraints available in the market.

Procuring nuclear fuel requires intensive planning. The interviewee indicated that this process was an extension of the earlier career. It requires 18 months to get the fuel delivered in a form that can be used in a nuclear reactor. This period follows the signing of a contract to procure fuel. Before the procurement begins, there is a period of competitive bids that seeks to establish a suitable bidder for the contract. Therefore, this process requires individuals that are capable of handling negotiations at an international standard. This requirement is because the transactions entail different countries; thus, expertise in international communication and relations is vital. The extended bidding period of between 12 and 18 months is usually a thorough process whose outcome determines the future of the company. The officials mandated to oversee this process should ensure due diligence in the negotiations and be sharp to avoid missing on the details.

The procurement of nuclear fuel also requires technical knowledge in economics since the prices rely on the fundamentals of supply and demand. The interviewee outlined the various techniques that they use to hedge against market uncertainty in particular cost and product availability. These strategies require professionals to study the market forces in countries abroad and make educated guesses based on the factors observed. The company makes a fixed-price purchase to hedge against market increases. Since the prices of the commodity might shoot, the company chooses to pay for an agreed price paid in advance for a certain period extending into the future. This way, if rates increase, the company would still purchase at the lower price fixed in the past during the contract. The other option is to make a market-based purchase to help hedge against future decreases. This approach is used to avoid the risk of committing to a price that, in the future, might drop. The ability to correctly predict these changes and advise the company on the best strategy is essential in helping to minimize losses. At this level, the professionals study and analyze international markets to help develop a detailed assessment used in making decisions.

Market uncertainty is an essential lesson in the business of procuring nuclear fuel. Therefore, the interviewee considers the ability to correctly predict the various changes in the market as one of the main successes at work. This success resulted from having made prudent decisions regarding purchases, which entailed missing market turns at some point while at another, they timed the market correctly. Purchase decisions influence the operations of the company; therefore, they should be assessed carefully to ensure that there are no delays in the supply chain. This point explains why the interviewee considered making the right perfect decisions as a significant achievement in the business. The challenge should be even higher in the international market since the forces that influence activities are uneven. Therefore, the interviewee recommended a procurement approach that incorporates product, supplier, and pricing term diversity. Such an approach would help to safeguard the company against market uncertainty and also ensure a steady supply of nuclear fuel.

Competition is a factor to consider in international business like in any other business. The competition in this context is between suppliers, whereby the U.S. alleged that countries with lax regulations put them at a price disadvantage. However, this alleged advantage was leveled by the proximity of the U.S. to the company. As mentioned earlier, government policy has an impact on the ability to do business since, in some cases, it might make it expensive to procure material from particular regions. Although currency might affect transactions in other industries, in the nuclear business, the currency is not an issue, according to the interviewee.

For a company to conduct international business successfully, it needs to establish personal relationships with prospective counterparts. Also, the company should undertake due diligence to ascertain the reliability of these parties. Regarding market research, an industry such as this one involving nuclear has few players. Therefore, individuals meet regularly; thus, market research is not required. Technology such as email has eased communication and has improved the efficiency of dealing with overseas offices. The highlight of being involved in international business, according to the interviewee, is the opportunity to tour different countries for business meetings.

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