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International Forces in Business Environment

The business environment is shaped by global forces such as technology, sustainability, and cultural ideologies, necessitating that organizations adapt their strategies accordingly. Advances in technology enhance communication and marketing opportunities, particularly for small businesses, while sustainability efforts increase production costs. Additionally, globalization creates a market without borders, presenting both opportunities and challenges for businesses navigating diverse cultural and religious landscapes.

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125 views2 pages

International Forces in Business Environment

The business environment is shaped by global forces such as technology, sustainability, and cultural ideologies, necessitating that organizations adapt their strategies accordingly. Advances in technology enhance communication and marketing opportunities, particularly for small businesses, while sustainability efforts increase production costs. Additionally, globalization creates a market without borders, presenting both opportunities and challenges for businesses navigating diverse cultural and religious landscapes.

Uploaded by

loveu0135
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

International forces in Business Environment

The business environment is greatly influenced by global forces and trends that tend to
define how organizations interact with customers and respond to competition. From
advances in technology to religious fundamentalism, business culture has come to be
defined by events dictated by these forces, leaving companies with little choice but adapt to
their dynamics. Globalization has brought with it both uniformity and fierce competition. and
businesses have to devise strategies that enhance compliance with prevailing market
trends.

Focus on Sustainability and the Environment


In an effort to mitigate global warming, governments, manufacturing industries and small
businesses worldwide are focusing on sustainability by encouraging environmentally friendly
practices. Going green is a powerful global force that comes at a cost to small business.
Every company product must have a stamp of approval proclaiming its production and
disposal processes are green. The service industry must observe stringent environmental
laws that add to administrative overheads. The net effect is a rise in production costs
incurred by the manufacturing sector and the business community as a whole.

Advances in Technology
Advances in technology have led to the current global grid driven by one thing: information.
Information technology is a strong force that continues to enhance communications in all
sectors. Companies are wise to take advantage of various marketing platforms driven by the
Internet, such as dedicated websites, social networks, smartphone apps and email. Small
businesses are in a unique position to leverage the power of technology to expand their
market base through affordable advertising on these media and reach a sizable number of
potential customers.

Emerging Markets
One clear aspect of globalization has been the drive toward international commerce.
Businesses are virtually interlinked, creating a powerful force in the form of a market
without borders. As small business enterprises gain a global foothold, a contradiction
emerges: on one end is market potential in various parts of the world; on the other, every
financial catastrophe occurring in one part of the world reverberates globally. This is
compounded by emerging markets that have seen an increase in manufacturing industries
and buying power, and companies have to compete for raw materials and customers.

Cultural and Religious Ideologies


Differing ideologies can be a force that defines how businesses conduct their affairs.
Ideologies seem to compete for people’s attention, time and resources. Whether political,
cultural or religious, individuals hold strong convictions and are deeply committed to
maintaining and defending them, sometimes by force and intimidation. Particularly for small
businesses transacting outside the United States, ideologies often dictate how, when and
where they conduct business; thus, they have to devise strategies for operating within this
world setting. Some products or services may be decreed in some countries due to religious
reasons, even if there is clear potential for the market.

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