Global Factors Affecting Business Essay

Words: 1024
Pages: 5
Open Document
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…
In case of reduction in demand the prices will go down. Business strategies should be developed keeping in mind these fluctuations. Other economic changes that affect business include changes in the interest rate, wage rates, and the rate of inflation. Incase of low interest rates and increase in demand Businesses will be encouraged to expand and take risks. Therefore, business strategies should have room for such fluctuations.
All these factors need to be considered in any global business venture:

a. Tax Systems
b. Investment Considerations and Allowances
c. Sophistication of Financial Markets – ease with which capital can be moved and raised
d. Commodity Prices – oil, energy, metals
e. Monetary and Fiscal Policies – interest rates, tax regimes, government aid
f. Internal Regulation and Bureaucracy – can be stifling!
Exchange Rates

d. Political factors - This refers to the changes in government and government policies. Political factors greatly influence the operation of business. This has gained significant importance off late. For example: companies operating in the European Union have to adopt directives and regulations created by the EU. The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. Business must consider the stability of the political environment, government’s policy on the economy etc.

• Political Change – regime change through coup, violence, etc.
•
Show More

Related Documents: Global Factors Affecting Business Essay

PESTEL Analysis Essay

MANAGEMENT NAME: CHRISTOPHER MUNENE NO: 1018463 UNIT: TOPICS IN MARKETING MANAGEMENT CODE: CMK 424 Selling goods in the global marketing is extremely challenging. Discuss the major political, economic, socio-cultural, technological, legal and ecological challenges that a global marketing manager may have to contend with? The following analysis known as the PESTEL analysis is a framework used to scan the organization’s external macro environment…

Words 976 - Pages 4

Model questions for Global Marketing Essay

Model questions for Global Marketing Outline and discuss the principal causal factors that encourage firms to undertake the international marketing of their products and services. Cultural and political forces influence international marketing activity. Discuss the impact of these forces and illustrate your answers with examples. “The global competitor will seek to standardise his offering everywhere” (Levitt). Critically evaluate this view with specific reference to a firm’s international…

Words 1515 - Pages 7

Global Sourcing Benefits and Challenges for H&M Essay

MO358 Strategic Supply Chain Management Global Sourcing- Benefits and challenges for H&M Northumbria University, UK Abstract Global sourcing is a technique of strategic sourcing in the global strategy, which is an effective approach as a part of organization’s procurement section. The objective of global sourcing is to develop global efficiencies in the delivery of a product or service for the firms achieving a sustainable competitive advantage and this is an important weapon have been…

Words 4693 - Pages 19

Essay on Systematic Study of Organizational Behavior

There are many factors that have an influence on the manager’s role in an organization. Three of the most important factors affecting the manager’s role are Globalization, Intuition, and Diversity. In today’s business environment, more and more companies are conducting business on a global basis. With the power of the Internet moving information at the speed of sound, business can be conducted without national boundaries. As a part of the emerging globalization in commerce, managers in organizations…

Words 1564 - Pages 7

strategies management Essay

to management operations Prepared by Xia Kong School of Business/Graduate Studies St. Thomas University Miami Gardens, Fla. Dec 5, 2013 1. Why is supply chain management so important in the new global economy? Be specific and present an example. Dr. Shailendrakumar Uttamrao Kale, working as Dean and a Professor at prestigious Sinhgad Institute of Management, Pune, has completed his dissertation named “Global Competitiveness: Role of Supply chain Management in the field of Supply…

Words 1156 - Pages 5

Securities Pricing Essay

willingness to hold each currency. Like other asset prices, the exchange rate is determined by expectations about the future, not current trade flows. Competitive position and environment Our results have been and will continue to be affected by many factors, including the level of trading activity in our markets, which during any period is significantly influenced by general market conditions, competition, market share and the pace of industry consolidation; broad trends in the brokerage and finance…

Words 541 - Pages 3

Internal And External Factors

organisation’s success is influenced by factors operating in its internal and external environment. An organisation can increase its success by adopting strategies that manipulate these factors to its advantages. A successful organisation will not only understand existing factors but also forecast change so that it can take advantage of change within the environment in which it operates. A STEP analysis is used to identify the external forces affecting an organisation. STEP factors are external forces which…

Words 1112 - Pages 5

Caroline Ppt Essay example

transparency ECONOMIC GROWTH THROUGH THE INTERNATIONAL TRADE Increase the rate of international trade economic growth Reduce the trade barrier between countries EDUCATION LEVEL OF ACCOUNTANTS Help the countries to adapt the IAS Education is the decisive factor that is more adaptable and flexible to adopt the IAS High qualified accountants and well-trained users exercise professional judgment because the developing countries need them to apply the IAS for the government or the companies UNIFY THE FINANCIAL…

Words 582 - Pages 3

Pest on Unilever Essay

Netherlands and Unilever PLC in London, United Kingdom. This arrangement is similar to those of Reed Elsevier and Royal Dutch Shell prior to their unified structures. Both Unilever companies have the same directors and effectively operate as a single business. The current non-executive Chairman of Unilever N.V. and PLC is Michael Treschow while Paul Polman is Group Chief Executive. Unilever's main…

Words 990 - Pages 4

Puma Paper

Are they clearly stated or are they merely implied from performance? 2. Mission: What business(es) is the corporation in? Is the mission statement appropriate? 3. Objectives: What are the corporate, business, and functional objectives? Are they consistent with each other, with the mission, and with the internal and external environments? 4. Strategies: What are the current corporate, business, and functional strategies? Are they consistent with each other, with the mission and objectives…

Words 616 - Pages 3