The International / Global Business Environment

3139 Words Aug 10th, 2015 13 Pages
Jessica Beer

“Whatever your level of involvement, it is important to understand the global business environment and its influence on the manager 's role. This complex role demands a contingency approach to dynamic environments, each of which has its own unique requirements.” (Deresky, 2010).

Within the overall global environment, there are three subsections that global managers must understand comprehensively before they can expect to have success in any country. These are the operating environment, the host country environment, and the mega environment. Each of these are equally important, and failure to understand the environment can lead to profit loss and/or the failure of the business within the industry.
Under operating environment, the global manager must consider the regulations and laws, the culture, the abundant skills, the social responsibility and the ethics surrounding any country they wish to set up in/expand into. Without sufficient research and knowledge, the global manger is destined to fail from the very beginning. Any discerning global manager will have completed knowledge and lead their team and operations in their new country based off of this information.
The host country environment is equally important, as it includes local competition, the subsidiary-host interdependence, the economic/political environments and technological environments.
Lastly, the global manager needs to be aware of companies…
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