Question

Choose one of the four questions presented in the "critical thinking" section on page 87 of the textbook. Present your answers in an essay format with professional writing and well thought out answers. Also provide some research and state a fact or idea. For example the sky is blue ( and here is why) and according to Dr. Smith in his article (abcdefgh) he states the the blue sky comes from...... The question is What can businesses do to prevent unexpected problems in dealing with sociocultural, economic and financial, legal and regulatory, and physical and environmental forces in global market?

Answer 1

A company is always prone to some external factors which changes its focus on International operations. The factors are responsible for all the changes in the international marketing strategies as well as policies of the organisations.

Some factor which affects business operations internationally are as follows

Increasing Competition

As the competition is growing and there are so many competitors are coming up with similar ideas in international markets. As international markets are huge and the number of businesses who are working internationally are also very big. Hence number of affecting competitors is also increased which directly affects the organisations overall capability and business operations. By having a tough competition in the same feel your company is dealing in, overall profit margins are reduced and we have to focus on better promotion strategy to compete with the other competitors as well.

Policies of government

Government policies is one of the most major factor that influences a company's overall international business operations. As the government policies changes company's business operations are diversely affected. At some places government policies can be against the company's business strategy and at some places it can be in favour hence it creates a difference between two places of doing business. Why these changes and policies of government a business is really affected internationally.

Natural forces

If a company lacks a natural resource then we cannot do anything about it, changes from place to place and in international market If a company cannot find a proper resource then it cannot survive in the same location.

Socio cultural factors

Socio cultural factors diversely effects companies international business operations, as the socio-cultural factors produces a cultural difference in the company as well as the workplace. In international market where different cultures are working all together, effect of social cultural environment is very big.

Demographic factors

Demographic factors are the one of the most influencing factors for affecting the international operations for a business. Demographic factors are uncontrollable and directly affects the company's over on productivity as well as diversity which affects its International operations.

Technological advancement

Technological advancement is taking place. Many companies are coming up with their own ideas who are more technically advanced and developing new ways to deal with the International markets which is increasing the overall thread for the companies in international platforms.

Multiple operative techniques as well as advance forecasting strategies are required to overcome this specific situation.By applying specific tactics which is used in determining the specific factors, overall position of the business in the international market would be widely increased.