Political factors - This refers to the changes in government and government policies. Technological factors - These factors greatly influence business strategies as they provide opportunities for businesses to adopt new innovations, and inventions.
Get your price writers online By considering the environment as an exploitable external element, an organization can generate high profit for some time.
Huge volumes of information can be securely shared by means of databases thereby enabling vast cost reductions, and improvements in service. Business strategies should be developed keeping in mind these fluctuations.
Last year, China announced that it would let the Yuan be more flexible, and this decision was seen as a constructive step by President Barack Obama. This is just a sample from a fellow student.
As reported by the Chinese Ministry of Health, in fact, the country has been focussing on its economic rise without caring about the consequences that such a rapid and uncontrollable industrialization could bring.
Economic factors - These factors involve changes in the global economy. This would imply that in case of a rise in economic activity the demand of the product will increase and hence the price will increase. In case of reduction in demand the prices will go down. Consumer religion, language, lifestyle patterns are all important information for successful business management.
Legal factors - These factors that influence business strategies are related to changes in government laws and regulations. This way, Chinese manufacturers save loads of money on production costs and can keep their prices low and competitive.
Lin The Guardian, suggested that China should recognize the importance of development and the unbreakable relationship between GDP growth, sustainability and public welfare, in order to become like Japan, which became industrialized in less than a century and managed to keep a predominant position in the world economy.
Any type of essay. Global Factors and Strategy Businesses are affected by an external environment as much as they are affected by the competitors. Ever since China became a WTO member WTO News,its exports have been higher than its imports, which has caused the international community to complain about a number of issues, such as child labour, pollution, low-quality standards and unfair currency policies.
In a global environment it is important that business strategies are designed keeping in mind the social and cultural differences that vary from country to country.
The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. As reported by Mike Adamsthe Food and Drug Administration analyzed several products coming from China and advised consumers not to purchase China-made food, perfumes, creams or any other products intended for personal care, for many of them contain deadly poisons and toxic chemicals.
It has become easier for companies to communicate with their customer in any part of the world.
This helps the business to reduce costs and develop new products. That is sure to be a good reason to start considering being more collaborative, rewarding sustainable companies, penalising the ones that pollute and investing in sustainable development, which, unlike rapid and uncontrollable industrialisation, will certainly bring positive results in the long run, just like it happened in Japan, as Dr.
Other economic changes that affect business include changes in the interest rate, wage rates, and the rate of inflation. Political factors greatly influence the operation of business.
Organisations need to consider the latest relevant technological advancements for their business and to stay competitive. The reason why such chemicals are preferred to natural or harmless ingredients is not easy to guess: Buying patterns are greatly influenced by the changes in the structure of the population, and in consumer lifestyles.
Lin Jiabin The Guardian, observed. A rise in living standards would ultimately imply an increase in demand for products thereby, providing greater opportunities for businesses to make profits. Social factors - These factors are related to changes in social structures.
An economy witnesses fluctuations in economic activities. Incase of low interest rates and increase in demand Businesses will be encouraged to expand and take risks.
With the advent of modern communication technologies, technological factors have gained great impetus in the business arena. However, the fact that the government announced that it would close that plant means that something is finally changing in China.
Pssst… we can write an original essay just for you. Therefore, business strategies should have room for such fluctuations.The Impact And Influence Of The External Environment Business Essay.
Ans) Business of any kind is definitely affected by its internal factors as well as external factors. Businesses are affected by an external environment as much as they are affected by the competitors. Global factors influencing business are legal, political, social, technological and economic.
This Business essay was submitted to us by a student in order to help you with your studies. Rating: Rating. No ratings yet! Order a custom essay. BUSINESS ENVIRONMENT IN CHINA: ECONOMIC, POLITICAL, AND CULTURAL FACTORS.
Georgine K. Fogel, Lawrence Technological University. ABSTRACT. China is an emerging economy that offers lot of market opportunities for foreign investment. Changing External Environment Markets are changing all the time. It does depend on the type of product the business produces, however a business needs to react or lose customers.
What is an External Environment in Business? - Definition, Types & Factors An external environment is composed of all the outside factors or influences that impact the operation of business.
An Introduction To Business Environment Business Essay. Print Reference this. Published: 23rd March, Macro environment of business means all external factors which influence company and its business and there is no direct of company on these factors.
and Deloitte faults China, the foremost contributor to the multi-year boom, for.Download