Business Environment: Looking at different perspective

The International Business

In international business and trade context, the business environment encompasses those factors that surround the operations of an international business. Is it a manager’s work to identify and work on these factors as they affect the company’s overall operations. Import and export, licensing, franchising are few of the forms of business environment. These forms are related to business as they help the business expand, they help the business to be exposed to potential customers, and they help in the proper management of the product life cycle. Because of this, the business will be open to more business opportunities, thus achieving business growth.

Factors affecting Business Environment

Social

Society factors are influences that define lifestyle which affects one’s business. It includes democratic factors, religion, social responsibility, education and family, to name a few. These factors help the company to identify those people who comprise their client base. Also, these factors will enable the company to know how their customers live and how these factors may influence your relationship with them. Social factors may influence business decisions. For example, when a company’s customer base involves most teenagers, they can pursue online selling since teenagers are fond of internet shopping.

Socio-cultural

It is the business manager’s work to identify the socio-cultural factors of the countries in which they operate as they affect the company’s overall operations. Businesses must be aware that socio-cultural factors vary among countries. As such, they need to cater these differences by becoming more diverse through its people, tastes, customs and beliefs. Businesses must strive to target demographics, religion, family and education using marketing styles that are sensitive to individual attitudes and practices.

Religion, Family system, and Educational System

In cultural dimensions, the premises include religion, family, educational and social systems of a society. Among the three premises, religion is the most difficult to deal with as there are many religions existing in the globe. Furthermore, in each religion, they have varying restrictions, beliefs and practices. As such, companies will experience difficulties in developing any generalizations about nature in each religion. Hence, it will not be easy for them to create marketing styles that are sensitive to each religion.

Who is most benefited in the business setting with the advent of new technology?

I think both business and customers are most benefited with the advancement of technology. In today’s world, businesses save annually with their operating costs because of the help of machineries. Machineries are known to be more efficient and more effective than humans.

Overall, businesses also saved advertising costs as their products can now be freely advertised on the internet. On the other hand, I can say that customers are also benefited with the advent of the internet. As companies become more cost effective, products’ prices will be going down. Thus, benefiting the customers. Also, with the help of technology, customers are provided with convenience such as online shopping and delivery services.