ICMR Case Studies and Management Resources
Asia's Largest Online Collection of Management Case Studies
ICMR Case Studies and Management Resources |
|
|
Global Business Environment
|
||||||||||
 |
Title : Global Business Environment Textbook. |
 |
Title : Global Business Environment Workbook |
To function effectively and efficiently,
companies operating internationally must understand the social environment
of the host countries they are operating in. Today there are thousands of
MNCs which operate in many parts of the globe. Such companies should
familiarize themselves with the languages, cultures and the business
environments of the countries in which they are operating.
The global
business environment can be defined as the environment in different
sovereign countries, with factors exogenous to the home environment of the
organization, influencing decision making on resource use and capabilities.
This includes the social, political, economic, regulatory, tax, cultural,
legal, and technological environments.
The political environment in a country influences the legislations and
government rules and regulations under which a foreign firm operates. The
economic environment relates to all the factors that contribute to a
country’s attractiveness for foreign businesses.
Every country in the world follows its own system of law. A foreign company
operating in that particular country has to abide with its system of law as long
as it is operating in that country. The technological environment comprises
factors related to the materials and machines used in manufacturing goods and
services. Receptivity of organizations to new technology and adoption of new
technology by consumers influence decisions made in an organization.
As firms have no control over the external environment, their success depends
upon how well they adapt to the external environment. A firm’s ability to design
and adjust its internal variables to take advantage of opportunities offered by
the external environment, and its ability to control threats posed by the same
environment, determine its success.
This book describes the external environment in which today’s multinationals
corporations conduct their business.
Copyright © 2007 ICMR . All rights reserved.
Terms of Use | Privacy Policy
Short Case Studies / Caselets