The paper "Factors of International Business Environment" is a wonderful example of a Marketing Case Study. International organizations have to know the requirements they will need in order to establish themselves in foreign markets. This paper attempts to clarify some of the key factors to they consider. Market selection is important for any firm to be operational in a certain country abroad. The current situation in international business is the factor that most businesses consider before setting up a firm in a country. The main topics that this paper discusses the factors that affect international business form a theoretical point.
The literature consist of the main factors that affect international business namely; political environment, cultural factors, economic factors, legal factors, technological and social just to highlight a few The fundamental step in the operation of a firm is the environmental analysis and any firm considers in operation. There are controllable forces that managers can deal with; uncontrollable forces are external factors, which influence the firm's operation. The conclusion will give a brief statement on the key factor that affect international business environment. Introduction Firms or Organizations internationalize for using their resources adequately.
Globalization has made it necessary and facilitated the move of firms to go international in terms of activities and products (Wood and Robertson, 2004) the entry mode of choice by a firm is dependent on the prevalent conditions in the country it will operate. The political, social, economic, demographic, geography and culture of the people play a crucial role in the success of the firm abroad. The market trends undergo analysis for product demand and means of improving the existing market supply of the commodity or service.
It is difficult to comprehend the business environment in a country without knowing its political system and institutions, government policies and economic survey of the country. A business can enter into the international market depending firm's background, nature, objectives, and the resources the firm has in many ways. Obstacles are many in entering a market e. g. packaging, environmental concern, labeling patents, trademarks, and copyrights are some of the factors in a business environment that will determine its success. The entry mode chosen is dependent on the degree of marketing and commitment of the firm.
Decisions should reflect the market study and company potential. When operating in a global market the firm should not bring differences to the communities in the region but rather promote harmony and peace. The cultures of the people e. g. food, dress, languages and communication styles in the area of operation should be taken into consideration if the firm wants to be successful. Some of the factors that are key in the international business environment include; political, economic, legal factors, cultural factors, risk factors, and international experience just to name a few.
The theoretical studies of the area undergo analysis according to advantages and disadvantages and the decision made on what step the firm should take. Environmental analysis has proven to be a vital factor in the operation of a firm, though uncontrollable issues play a crucial role in business operations. Assessing Business Environment Companies that wish to extend to the global market need to carry out market research and analysis. Environmental analysis is an important component in the genesis of international marketing. The environmental aspect should be a continuous process, the macro and microenvironment i. e.
political, economic, socio-cultural forces, as well as technological factors most known as PESTEL factors are the essentials for the business launch.
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