Technology helps business to gain competitive advantage, and is a major driver of globalization. With the advent of modern communication technologies, technological factors have gained great impetus in the business arena.
An economy witnesses fluctuations in economic activities. This has gained significant importance off late. Huge volumes of information can be securely shared by means of databases thereby enabling vast cost reductions, and improvements in service.
This helps the business to reduce costs and develop new products. Laws keep changing over a period of time. Incase of low interest rates and increase in demand Businesses will be encouraged to expand and take risks.
Economic factors - These factors involve changes in the global economy. Business strategies should be developed keeping in mind these fluctuations. Technological factors - These factors greatly influence business strategies as they provide opportunities for businesses to adopt new innovations, and inventions.
Firms can select new modes of distributions with the help of technology. Buying patterns are greatly influenced by the changes in the structure of the population, and in consumer lifestyles.
Legal factors - These factors that influence business strategies are related to changes in government laws and regulations.
Therefore, business strategies should have room for such fluctuations. It has become easier for companies to communicate with their customer in any part of the world. Age, gender, etc all determine the buying patterns and understanding of such changes is critical for developing strategies which are in line with the market situations.
The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. While designing the business strategies firms must consider if use of technology will allow the firm to manufacture products and services at a lower cost.
For a successful business operation it is important that the businesses consider the legal issues involved in a particular situation and should have the capability to anticipate ways in which changes in laws will affect the way they must behave.
A rise in living standards would ultimately imply an increase in demand for products thereby, providing greater opportunities for businesses to make profits.
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. In case of reduction in demand the prices will go down.
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. Political factors - This refers to the changes in government and government policies.
Global Factors and Strategy Businesses are affected by an external environment as much as they are affected by the competitors. Other economic changes that affect business include changes in the interest rate, wage rates, and the rate of inflation. Social factors - These factors are related to changes in social structures.In this lesson, you'll learn about the legal and economic environments of business and how businesses are affected by them.
The External Environment Meet Emmanuelle. For the person to be able to make a wise decision about how to make his project a reality we look at three types of business, the sole proprietorship, general partnership and corporation, while considering the advantages and disadvantages.
Global factors influencing business are legal, political, social, technological and economic. Understanding of these factors is important while developing a business strategy. Global factors influencing business are legal, political, social, technological and economic.
This Business essay was submitted to us by a student in order to. BUSINESS ENVIRONMENT IN CHINA: ECONOMIC, POLITICAL, AND CULTURAL FACTORS.
Georgine K. Fogel, Lawrence Technological University examines the economic, political, and cultural factors that influence business practices in China.
Private ownership of production assets is now legal. The Political And Legal Environment Of China Economics Essay. social and cultural aspects for business and country is bilateral. But when it is not always true, that all the country’s can enjoy success rate much than failure.
they try to increase these impacts by means of the trade and investment which fuels China’s rapid economic. economics and the legal environment Essay; economics and the legal environment Essay.
Words Feb 26th, 7 Pages. Show More. Date File 1 Chapter One LEGAL, SOCIAL, AND ECONOMIC ENVIRONMENTS OF BUSINESS 1 Legal, Social, and Economic Environments of Business Andrew Desjardins American Intercontinental .Download