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Potentials and Challenges Of Global Business in Pakistan

TOPIC: Potentials and Challenges Of Global Business in Pakistan



Executive summary…………………………………………………3

Introduction ……………………………………………………….3

Issues ……………………………………………………………….4

Opportunities …………………………………………………….7

Swot analysis of apple ……………………………………………..9

Pest analysis of apple ……………………………………………..11

Recommendation ………………………………………………….13

Conclusion …………………………………………………………14

Potentials and Challenges Of Global Business in Pakistan

Executive Summary

As this is an era of competition and a business that is more competitive and profitable can be seen that have strong relationship with foreign investors, customers and suppliers that means is highly globalized. Globalization of a business is also based on country economic, legal and political policies that are different for different countries. Pakistan does not have enough strong legal and political environments that cause hurdles in the way of globalization of our businesses. For getting the benefits of globalization, Pakistanis companies must have also to be considered the importance of globalization and must have the strong foreign relationship by developing foreign ventures.



The international media business in which two or more countries in the exchange of goods and services from others in this way get more benefit with minimum resource usage. Globalization makes business easier to sell their products anywhere in the world through the global market. Global business commerce must take on the challenges and risks at various parts. Some of the risks are the same as the risks and challenges faced by a local business but others are unique to the international business scene. Even the challenges that are related, by definition, are of a different character. For example, the two forms of business have to endure economic challenges, but a global trading business will face several issues related to the international financial markets that do not relate to local businesses as much. They are more of a challenge in the nature of the risks and most of them can be treated through proper preparation. Read on to identify these challenges better.


There are many issues of global business in Pakistan. Which are some explain it like laws and regulation, communication difficulties and cultural differences, economic and financial challenges and terrorism.

LAWs and regulations:

Each country has its own rules and laws and will be your duty to know them. Importers and exporters should be aware of international laws. Research should be the first thing you do after deciding to go global with your small / medium sized business. Some products may be prohibited in some countries, and although you are not aware of these restrictions, the company will end up in trouble if dispatch products.

Communication difficulties and cultural differences:

His business partners abroad cannot speak the languages you know and this could be another obstacle to their business. You may think, “that’s what Google Translate is for”? Well, it could be a little help, by phrases such as hello and thank you, but Google Translate is not 100% accurate. Good communication is the key factor in all of our lives, and if you cannot communicate effectively – how do you expect to sell or buy the right products in the right amounts? Transactions cannot go as smooth as you would ideally like to be. Not to forget the obstacles that may arise due to cultural differences. Your relationships with people from other cultures are enhanced when they are aware of cultural differences, such as communication styles, religious beliefs, power structures and attitudes toward time and work. So understand the country culture and then decide about business.

Economic and financial challenges:

It starts from the organization of the resources needed to start global trade and consist of all, as the variation in the exchange rate, the international financial crisis (or some of the financial crises in the host country), the change in oil rates, increases in international prices or tariff barriers imposed by the ruling party host also export laws related to their own government.

WAR or Terrorism:

Several multinational companies have to tolerate the severe opposition of some environmentally friendly organizations. Citizens are more concerned about water and air pollution these days, as it is becoming a serious threat to your health. Some natural disasters such as earthquakes and floods or some kind of civil war erupted in the host country is also in the list of potential challenges. A new challenge that a global trading company has to bear these days in some specific nation is in danger of bombing campaigns, violence or terror.


Political experience is a must for everyone, but becomes so vital when working globally. If some plans were appropriate for your trade, a change of government in power can bring strong changes in those plans. Political unrest will bring down the financial system and that can affect your business. To avoid such useless blows safeguard business, you need to make good policy decisions.

Payment Methods and Currency Rate:

These are other obstacles that small business owners should consider before accepting or making international orders. Countries may have different payment methods that are popular locally, but cannot be used internationally. To ensure your business always select the safest option for you. The exchange rate is also of importance. You should be aware of the exchange rates at the time of the purchase or sale of their products. Drastic changes in exchange rates can reach your business. We all know that every penny counts for small businesses, so why risk it?


There are many opportunities offer of global business Pakistan. Which are some describe like tourism, adult employment, and power or energy base opportunities


Tourism provides opportunities of global business in Pakistan. In Pakistan 0.7 million tourists attract but almost double to that decade ago. Now reduce the tourism because of terrorism, political stability and some other factors. Pakistan is home several mountains like K2 and Pakistan have many places which is historical like Mohenjo-Daro, badshahi masjid, tomb of Jahangir Shalimar gardens and Lahore fort. Pakistan receives 50,000 tourists annually. If government provides better facility for foreigner and also provides security then they are effect or inspire to our country environment. So they get knowledge about Pakistan culture and environment which is benefit for those foreigner and they want investment in Pakistan.

Adult Employment:

Adult Employment is providing opportunities to enter business in country. Pakistan easily get this opportunity because Pakistan have 58.3% youngster but other issue also create 32% youngsters are illiterate, less than 6% of youth has acquired technical education, 2.5% youth has received on job training, 9.5% of youth is unemployed and 8.3% has self employee. If our country become better education and provide professionals skills diploma then we get maximum output. Many companies want to enter in Pakistan territory but if our provide technical education in youth this opportunity play vital role in economic growth.


Power or energy is main issue of Pakistan. Many companies interested in electricity projects which provide electricity. These project actually opportunity of Pakistan because our industry is destroying due to load shading. Pakistan get opportunities like when companies come to Pakistan for these projects seeing to these others firms or companies also attract in our country which is benefit for Pakistan.


Swot analysis of Apple:

Apple is good in computer hardware and software and lead with the competitor. To evaluate the progress of Apple we analyses strength, weakness, opportunities and threats. This analysis helps to improve their products internally and externally.


Over the year, Apple has produced superior product as compared to competitor. Apple is the leader in computer market. It is one of the original hardware manufactures. Apple has produce high quality products in order to meet customer satisfaction. Apple researches that new products and developments which is become different from competitor.

Apple only focuses on quality not price. Apple has own stock. It does not have any debt so it is less risky for investor.


Apple always introduce new technology and design but it’s risky for example if new I pod launched then maybe I pod has fault like screen and battery life etc. therefore Apple faced always new challenges with new technologies. Many other competitors creating a similar product so it find the problem and remove the problem earlier their competitor and other weakness are research and development so risky.


Apple has many opportunities but current opportunities are the development and campaign of the new iPod shuffle – the first MP3 player in the world talking. Apple has proven its quality by packing 4 gigabytes of memory on a device half the size of the original shuffle. Another area that is holding Apple is using Intel chips. Apple Intel chips will allow new machines to run the Windows operating system and could also be used to develop iTunes and music player technology that can be applied to a mobile phone. Apple must continue to create opportunities through new markets, innovative programs and strive to introduce its innovative hardware in these markets.


In computer industry many companies are entered. In the division of computer hardware, there are many competitors like Hewlett-Packard and Dell. Produces low budget Dell computers and products that appeal to consumers economically prudent. Apple has a stock price higher than Dell and HP, but the Apple market share and total revenues are significantly lower. It is imperative for Apple to constantly create new products that provide financial and technological standards for the computer industry. Apple has a growing international market, especially in Asia. The exchange challenges the organization and creates a change in supply and demand. With the depreciation of the U.S. dollar, international revenue is declining. The global economy threatens most industries in the global market, which is an obstacle to Apple’s revenue.


PEST Analysis of Apple:

PEST analysis helps that in future direction. It provides information about political factor, economical factor, social factor and technology factor.

Political factor:

Currently Apple executes the business in whole the world. According to report half sale of apple is coming from different countries other than South American. There are several issues like terrorism war, geopolitical, health facilitate such analysis effect on Apple sales.

Economical factor:

In past years word economy is better after recession. In past few year oil prices high which causes inflation in word economy due to such factors the purchasing power is reduce so people could not buy product and other factors also effect like currency rates and unemployment. In last few years unemployment increase in USA and Europe cause of increase unemployment. People does not have power buy product and fall market sharply due to unemployment.


Social factor is environment protection and health safety. A variety of regulation and laws imposed such countries which unfavorable of the company. Certain products of the company are actually face health issues because of the design problem. It is reported that the improper use of iPod may lead to loss of hearing power of users.

Technology Factor:

Technology factor is also effect because technologies change quickly. New product is launched in market due to development is fast and change customer trends quickly. New technology also changes market. Due to technology change increase awareness of people from internet and social media.

Apple is competitive company so company need introduce new technology and some different features which are differentiate from other competitive companies. Now apple is many product introduce in market iPod and I phone but many product which compete apple so company necessary to spend money on research and development department.



In this era every country want to reach globalize market but in Pakistan there are many problems like political instability, weak policies, lack of education, and energy crisis etc. Most of companies have no knowledge of globalized market. They just focus on domestic level but few companies do have international trade and reach ever domestic product in globalized market. If peoples are educated then solve many problems. In Pakistan need political stability and policies are made restrict which does not change and energy crisis remove from country for increase growth of business.



After analyzing globalization is importance for countries and make good relationship among countries. Globalization is necessary for developing country like Pakistan but must have stable politics and policies.


Potentials and Challenges Of Global Business in Pakistan – REFERENCES

(Pakistan offers opportunities )

Pakistan offers opportunities . (n.d.). Retrieved from Pakistan defence: http://www.defence.pk/forums/economy-development/38751-pakistan-offers-lot-business-opportunities-sbc.html

(Pakistan observer)

Pakistan observer. (n.d.). Retrieved from http://pakobserver.net/detailnews.asp?id=196755

(Pakistan trender)


(Swot Analysis )