Insides of Business

1. What is Business Environment?

Business Environment is the surrounding in which the international companies operate. This area becomes the basis for companies all over the globe in planning on how to expand or operate their business that will give a positive impact on their economic standing. Trough researching and observing this environment in business, the companies tends to make strategies that will benefit their company. Business environment is also a way to monitor the economy of different countries, their global requirements, the market and possible competitions, technologies, social settings, opportunities or threat and more. The business environments such as sociocultural, technological, economic and legal environment plays a vital role in nation building.

Forms of Business Environment

Import and Export- these I can say are the most important form of business environment because without it the international business and trade will be impossible to begin with. Exports increases sales because there will be more costumers not only locals but international. Importation benefits customers because of the lower prices and there is a wide variety of choices with better quality. Both can create jobs and opportunity for countries to stronger their ties.

Franchising- some business enthusiast are more attracted to franchise a business because they will not need to start from the very bottom. Franchised business already has established name and people are into this kind of business. The more popular the business the more sales it will make and more jobs will create. This means that more tax the government will have.

Licensing- a business that is licensed under the government is considered legal entity and because of this people will trust the business more. This means that it will attract more customers and become loyal to the said business.

2. The different factors of the society affects the environment of the business, how?

Society has different factors such as family, educational institutions, religions and more that affects businesses. This factors are faced all over the world. Family is a basic part of the society. This has a big impact in making a decision on buying or selling of goods. That is because different families have different needs and it is based in the taste preference, natural factor, life style and health of a family. While for religion, people becomes faithful and they only want products that are good and inline in their religion. And as for educational institutions, this is where we learn and it plays a big factor on everyone’s decision making.

Example: Religion plays a vital role in the decision of people in buying and selling of goods. If a company sells pork products in Muslim counties surely, it will not be sold. Muslims don’t eat pork because of the faith in their religion.

3. What are the implications to the business if socio-cultural varies among countries.

If socio-cultural varies among countries, it will be hard for international companies to establish their business. They will need to research, study, observe and analyze to make the best strategy they can make. The problem here is some countries block change that is why international companies need to put extra effort in it. The beliefs, customs, practices, and behavior of people are not easy to change. That is why some products might not be for them or will not click in specific places.

4. In the cultural dimension, which among the three (3) premises: Religion, Family system, and Education system is the most difficult to deal with as an IBT. Why?

For me, among the 3 cultural dimension Religion is the most difficult to deal with as an IBT. Because this system is very sensitive and once a person is faithful in its religion no one can change his/her mind. For example, in products offerings they will base their decision on the religion they belong to. Especially now that people nowadays are very into their religions and some of them are scared not to follow what is written on their Holy Books.

5. With the advent of new technology, among the following aspect, which is most benefited: business, customers, government, or the economy? Choose two (2) only and why?

Most benefited

Business- the more advance the technology is the more products it will create. The connections to the customers everywhere is faster. And the promotions are easier compare than before. Through technology the labor cost of business will be decreased because of the use machines and for some it is more efficient and effective. More products mean more sale.

Government- it will be easier for them to gather data and monitor the businesses in a country. Because of the modern technology it is now easier for them to determine if businesses are paying taxes honestly. More incomes for companies means more taxes to be paid and it will benefit the environment and its people.