The European business is referred to as a buyer’s market; the trend is the result of international transitions, Political, economic, and social changes. The European business environment is characterized by the globalization of the world economy. Over the past few decades, the business environment of European is characterized by rapid changes in the economy. The main revolution has been coming from the transition of the seller’s market to the buyer’s market. The main aim of the report is to evaluate the European business environment and its improvement, the main body of the assignment will discuss the different parts of the business. It will discuss the definitions, characteristics, and importance; it will also evaluate the practical issues of the European business environment. Today’s buyer market of business comes with various characteristics, the report will briefly discuss it. There are various external factors that affect the European business environment.
European business environment
European business environment is a condition in which the business has been operated, business environment is now referred to as the buyer market; the market previously works as a seller market. The business environment of European is characterized by rapid changes in many factors. The seller market used to be common in the past, it refers to a monopolistic market somewhat; in this type of market, the supplier dictates the dimensions of transactions (Fogarassy, Horvath, and Borocz, 2017). The European business environment is characterized by the word economy globalization, fierce competition among the marketer, etc. The buyer market uses new managerial approaches and the knowledge of the availability and accessibility of data. The European business environment provides a time availability of materials, and also offers ease of global travel.
The specific characteristics of the European business environment are:
• It enables us to meet the cultural, political, complex, social, economically business environment of Europe (Hamilton, and Webster, 2018).
• It increases the ability to create images and to lead new forms of activity type, the commandos are allowed to go beyond the borders and to connect with the cultures
• It has the ability to motivate and lead the employees in order to enhance the focus of cultural values, it has aimed to achieve the mission.
• It has the ability to obtain support from other countries for its activities in order to achieve corporate identity.
• It promotes personalized transitional mobility and also has the ability to make a European career (Głodowska, 2017).
The business environment model of Europe provides features and the European identity for both a euro manager and the management sector. The European business environment is a diversified environment that is different from other environments, the most important features of the environment are:
• European business environment involves a design and a developed strategy that helps to exceed the scope of achieving objectives in the company (Tomaš, and Radovic-Markovic, 2018). It implements strategy within the business in order to expand its business to another specific country.
• Euro managers have the ability and knowledge to understand and implement the complexity and diversity, they also receive different pieces of training.
• It involves promoting cross-cultural communication and learning about European values, it also considers cross-cultural context.
• Companies of the country are organized on the basis of decentralization; the coordination helps the business environment to reduce the leadership of the center.
The country is a region of great cultural diversity; therefore it requires a combined process of practice and concept within the European business environment (Bedianashvili, 2016). In the respect of the process, a euro managed has expressed a discipline of study in 1990; they claim that this is not only a regional customization of compared management. European business environment management covers a complex reality; it covers the management process of firms and organizations. As a general situation, the European business environment faces a roller coaster business cycle in this current year (Nonet, Kassel, and Meijs, 2016). In total, the economy of Europe shrunk by 7%, and the blow to the economy is harder than the US economy; the GDP of the US contracted by half of the European GDP.
The most complex situation which seems to happen in the European business environment is the environmental potential of the collaborative economy. The collaborative economy refers to the business model in which an individual use of products and services is turned into shared usage on a temporary basis. This shared usage of products and services is facilitated by online platforms and open markets. It has aimed to reduce the cost as well as to maintain the potential environmental gain, it has been estimated that the collaborative economy helps to save 7% of the household budget (Bobenič-Hintošová, 2016). It is also successful in reducing the wastage market operating by 20%, which plays an enormous role in a business environment. The current literature review shows the positive impact of social and environmental factors to make available for further research. The study explains the complex effects of a collaborative economy on sustainable development, it includes both positive as well as negative drivers. The study helps to access the overall impact of socio-environmental factors on the collaborative economy today. The collaborative economy helps to address the gap and also it is involved in promoting ways to support the EU in providing positive impacts.
The size of the collaborative economy of the European business environment is still small; it only has limited growth in some platforms. The overall economy is still remaining on a small scale; however, the business environment is expected to cover it through the collaborative and traditional model. The transaction sector has less clear benefits of socioeconomic and environmental factors, at the macro level, several processes are taken place in different directions (Šebestová, Krejčí, and Šiška, 2018). The implemented process makes a large net impact that is dependent on rebound effects, these rebound effects have the tendency to cancel out the environmental gains from the European business. As induced by the collaborative economy, the effects of rebound can also compensate for the production and job loss. In the case of transport area, it is the largest potential to reduce the emission of energy where the car sharing availability helps to cut the use of a number of individual cars and also decreases the distance traveled by the vehicles. The current size of the collaborative economy is quite limited in the country; the tourist sector is the only sector where the collaborative economy has seemed to have a considerable market share (Abuselidze, and Gogitidze, 2020). In contrast, the shared car accounts for only 0.02% of the transport sector, the market of sharing consumer able durable is also small as the largest market of Europe has 250,000 worldwide.
In our personal opinion, employees should look forward to going for the business, they should not feel dread. For the consumer, the collaborative economy has the tendency for delivering benefits; the use of smartphones is the best way to reduce transaction costs and demand. According to individual points of view Positive impacts are generated in job creation and cost savings; whereas negative impacts are seen in the traditional economy. The result of the study indicates that most of the collaborative model is more effective than the traditional economy model (Cassis, Colli, and Schröter, 2016). This is because; the collaborative economy model is mature in dealing with the impacts in order to improve the European business environment rather than the traditional economic model which is dynamic in nature. Therefore, the collaborative economy model should not only be used to target the policy action, but it also needs to target all the activities. In our opinion, the targets are made with the aim to develop equal and fair competition between the collaborative and traditional economic models. The collaborative option for transport is the most effective option for the progress of the business; such collaboration helps in stimulating care sharing (Kreisel, Roth, and Brem, 2018). To promote collaborative transport, the European business environment has to be active in improving the rents. Therefore, good sharing and collaborative transport will help the EU to develop an economy in a sustainable manner.
After going through the above section, it may conclude that the European business environment is a kind of buyer market. Today’s buyer market is characterized by various trends; it is the result of changes in some external factors. The European business environment is the condition where the business has been operated. The economy of Europe is shrunk by 7%, it faces a roller coaster cycle in business for the past few years. The study has highlighted the potential environmental impacts that can be estimated from the collaborative economy business model. The collaboration is made on environmental and economic impact, the collaboration has matured manner. To promote effective growth, it should improve the renting; the dynamic should create more opportunities. Such developed conditions will help the country to facilitate more sustainable development. It has the potential to decrease the emission of energy by cutting down the use of cars in the transport sector.