Global Factors Affecting Business

1002 Words Mar 6th, 2011 5 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
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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
-Ethical considerations
-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
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