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 controllable at any cost but have to adopt for success of business are external or uncontrollable factors. For example Demography, Political forces, Legal practices, Cultural influences, Technological advancement, competitiveness etc. Businesses are affected by an external environment as much as they are affected by the competitors. Internal Factors: The factors those are related to the internal operations of a business and can be controlled by proper management are controllable or internal factors of business environment. For instance Land, Labour, Capital, Business Location etc.
Global factors influencing business are legal, political, social, technological and economic. Understanding of these factors is important while developing a business strategy. a.
Social factors - These factors are related to changes in social structures. These factors provide insights into behaviour, tastes, and lifestyles patterns of a population. Buying patterns are greatly influenced by the changes in the structure of the population, and in consumer lifestyles. Age, gender, etc all determine the buying patterns and understanding of such changes is critical for developing strategies which are in line with the market situations. In a global...
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