Global Factors Affecting Business
1002 WordsMar 6th, 20115 Pages
Global factors affecting business
The way of running the business differs from country to country. The marketing, sales and technical skills are required to increase the productivity of business. Business in general is enhanced when people from different cultures find new approaches to old problems, creating solutions by combining cultural perspectives and learning to see issues from the viewpoint of others.
Business Environment consists of factors influential to the business operations. These factors are classified into two broad categories. These are:
a) External or Uncontrollable factors of Business environment. b) Internal or Controllable factors of Business environment.
External Factors: The factors those are not…show more content…
Consumer religion, language, lifestyle patterns are all important information for successful business management.
-Religious Considerations – appropriateness of some business ventures – e.g. selling condoms in staunchly Catholic countries
-Impact on local communities of business development – availability of jobs, training, environmental impact for these communities
-Impact on the environment – can impact on the businesses image
-Cultural issues Impact on the environment
b. Legal factors - These factors that influence business strategies are related to changes in government laws and regulations. For a successful business operation it is important that the businesses consider the legal issues involved in a particular situation and should have the capability to anticipate ways in which changes in laws will affect the way they must behave. Laws keep changing over a period of time. From the point of view of business it is important that they are aware of these changes in the areas of consumer protection legislation, environmental legislation, health & safety and employment law, etc.
c. Economic factors - These factors involve changes in the global economy. A rise in living standards would ultimately imply an increase in demand for products thereby, providing greater opportunities for businesses to make profits. An economy witnesses fluctuations in economic activities. This would imply that in
Socio and Economic Factors in Global Business Essay examples
1906 Words8 Pages
Socio and Economic Factors in Global Business
When a company decides to take their business international, there are many different sociological and economic factors that they need to take into account. There are differences in management styles, international laws and treaties that regulate international business, as well as cultural customs that come into play. Each of these are significant and needs to be taken into account in order to minimize potential problems. Many times, lack of knowledge can create serious problems. Although there are a myriad of socio- and economic factors, this paper will focus on three key ones: 1) political barriers; 2) labor practices; and 3) cultural barriers. Additionally, real world examples will be…show more content…
The benefits of building a business in this market are enormous, and every company in the industry that considers itself a global player has spent the past five years trying to win the favor of Chinese officials. While most continue to lose money, including Wal-Mart, they've come to realize that loss is the cost of admission to a market offering the potential for enormous sales and profits as it transitions to a market-based economy and the standard of living increases for its 1.2 billion people. To get in on the ground floor, Wal-Mart entered the market in August 1996 with a supercenter and a Sam's Club. It added another supercenter in 1997, two more in 1998 and one in 1999. Expansion was more aggressive last year with five supercenter openings giving Wal-Mart a year-end total of 10 supercenters and one Sam's Club. The increased comfort level is the result of China's growing friendliness toward foreign investment in the retail sector of its economy. China is in the process of gaining admittance to the 140-member World Trade Organization. Inclusion is expected to reduce trade barriers eventually leading to sweeping changes in its economy (DSN Retailing Today, 2001). Wal-Mart is positioned to capitalize on this growth with a store format that has enjoyed strong acceptance since day one. Changes have been made to accommodate Chinese customers and different traffic patterns in stores. For example, customers shop stores more frequently and purchase