Corporate development is achieved through definition and implementation of effective strategies that cover both long-term and short-term objectives. For companies to be able to develop a sustainable plan, there is a need to examine the challenges that are prone to occurrence while in operation. Businesses can never pursue the goal of sustainability without including standards of performance as a primary element. The rules identify specific guidelines for the details to be achieved as well as the expected behaviour. There is no particular uniform set of standards that are used by global corporations in that corporations differ in line with goals, ideas, number of employees and culture.
The primary examples of criteria used by various firms include the Sigma project that works towards social and environmental performance. Companies also need to meet the comprehensive and transparent business standards of integration, disclosure, and management. The government also sets some rules which apply both at the local and national level (Adams & McNicholas, 2017). However, some government strategies apply for some specific firms based on the nature of product or service being handled. An example is the responsible care aspect for the extractive firms that deal in gases, oils and mining activities.
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Adoption of standards and principles is essential in that they add to the credibility of sustainability. The standards provide the basis for mutual understanding between business parties. When taking an example of the government role in business, there is need to define the lines of control to give an equal opportunity to all firms irrespective of size and also to ensure no cases of customer exploitation. The standards also facilitate business interaction by setting conditions under which various groups of individuals relate with a firm.
World Trade Organization (WTO)
Globalisation is a complex issue in business in that businesses and countries hold different policies of operation. As a result, there is the need to harmonise on all these activities while setting a common ground where every nation has an opportunity to thrive. The World Trade Organization (WTO) is an international body that is responsible for regulation of trade, global economics and the legal issues that may arise in business. The organisation is among the most powerful institution in determining the flow of capital across firms and nations and reducing the trade barriers that may hinder growth. The organisation has the power to amend the business agreements made on trade and tariffs.
The primary goal is to ensure the provision of a common platform for the member countries in services such as imports, exports and peaceful operations. The organisation also plays the role of providing a forum for trade negotiations among states. In most cases, countries need to settle their indifferences before venturing into business. As a result, WTO acts as a third party in settlement of disputes and setting of new business rules (Altbach, 2015). The organisation also establishes rules and regulations that are to be followed by member countries to ensure no disputes. When taking an example of exports, small companies need to be protected from monopoly power of international firms to ensure their growth.
The World Trade Organization works under five main principles which include non-discrimination, enforceable commitments, safety values, transparency and reciprocity. WTO is also engaged in main activities that revolve around freight distribution. Freight transportation is characterised by transnational mobility where the body is responsible for controlling the trade routes and cooperation of the expanded trade relations. The body is recently assuming the role of global government in that majority of the world nations have ceded to its authority. It is expected that the new architecture needed for global governance in trade should include formulated rules, the participation of international firms such as the world bank, and provision of incentives and funds.
Transportation Costs
The transportation sector is among the fast-growing industries due to technology. As a result, various changes need to be addressed progressively. When reflecting on transportation costs, the prices affect other travelling behaviors. For a user who is travelling by plane, the price elasticity of demand is mainly influenced by the number of close substitutes. Consumers opt for the methods that seem easy to switch. Train travel can work best when the distance involved is short. Another aspect is the degree of necessity for the service. If the client is travelling for luxury, there might be some form of inelastic demand as compared to business travels.
The proportion of the consumer income intended to be spent on the service is also essential. When the plane boarding prices are high, the consumer may opt for a different method. Other cases include whether the transportation method is habitual, peak and off-peak demand and the breadth of the definition of service (Fouquet, 2014). Airline companies can get a competitive advantage through pricing. The strategy can be enhanced by collecting customer data and feedback that is needed to optimise the travel activities. The companies should address the noted shortcomings and develop their capabilities in-house
When reflecting on the user travel case, airline companies should consider making a travel budget that covers both the peak and off-peak seasons. The process should be directed towards customisation such that majority can afford. Airline prices should be determined through the fare classes in line with the economy, distance to be covered and the time of travel. Additionally, customers who book their airline early should have their prices adjusted. In reality, the transportation approach should work towards enhancing the services available such as luggage space and comfortable seats in line with costs.
References
Adams, C. A., & McNicholas, P. (2017). Making a difference: Sustainability reporting, accountability and organisational change. Accounting, Auditing & Accountability Journal , 20 (3), 382-402.
Altbach, P. (2015). Higher education and the WTO: Globalization run amok. International Higher Education , (23).
Fouquet, R. (2014). Long-run demand for energy services: Income and price elasticities over two hundred years. Review of Environmental Economics and Policy , 8 (2), 186-207.
