49146003 influential factors of international business and international business environment

8/10/2019 49146003 Influential Factors of International Business and International Business Environment

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A Business Growth and Strategy Project

On

INFLUENTIAL FACTOS OF

INTENATIONALBUSINESS AN!

INTENATIONAL

BUSINESS EN"ION#ENT

By$An%it ! &ethani

'()*


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Business Environmentconsist o+ e,ery +actors in-uentia. to the /usiness

o0erations1 These +actors are c.assi2ed into two /road categories1 These are$

a3 E4terna. or Uncontro..a/.e +actors o+ Business en,iron5ent1

/3 Interna. or Contro..a/.e +actors o+ Business en,iron5ent1

External Factors$ The +actors those are not contro..a/.e at any cost /ut

ha,e to ado0t +or success o+ /usiness are e4terna. or uncontro..a/.e +actors1

For e4a50.e !e5ogra0hy6 Po.itica. +orces6 Lega. 0ractices6 Cu.tura.

in-uences6 Techno.ogica. ad,ance5ent6 co50etiti,eness etc1

Internal Factors$ The +actors those are re.ated to the interna. o0erations o+

a /usiness and can /e contro..ed /y 0ro0er 5anage5ent are contro..a/.e or

interna. +actors o+ /usiness en,iron5ent1 For instance Land6 La/or6 Ca0ita.6

Business Location etc1


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E7TENAL EN"ION#ENTAL FACTOS

81 SOCIAL CON!ITIONS

A Socio.ogica. 0ers0ecti,e o+ en,iron5ent inc.udes the !e5ogra0hic

Status and Trends6 the 9or% Ethic and Persona. "a.ues and Genera.

Cu.tura. "a.ues1 Each o+ these in-uences how 5anage5ent

acco50.ishes its jo/s1 Each country has a uni:ue Socia. En,iron5ent

and as /usiness /eco5es internationa.6 5anage5ent 5ust understand

these uni:ue en,iron5ents1

a1 !e5ogra0hy!e5ogra0hy 5eans the tota. nu5/er o+ 0o0u.ation o+ any

0articu.ar territory1 They ha,e a greater in-uence o+ any /usiness

o0eration1 For e4a50.e in a 5ass 0o0u.ated area de5and o+

consu5er 0roducts wi.. /e co50arati,e.y higher than any .esser

0o0u.ated area1 So6 we can say that de5ogra0hy has a direct

i50act on /usiness en,iron5ent1 Because de5and direct

towards 5a4i5i;ation o+ sa.es1 The higher the ,a.ue o+ sa.es the

5ore wou.d /e the 0ro2ts1 The 5ore 0ro2ts i50acts on success

/usiness o0erations1

/1 Cu.tura. ForcesCu.ture is that what we are that 5eans our .i,ing6 eating6 +ood

ha/it6 way o+ dressing and way o+ s0ea%ing e,erything

accu5u.ated to our cu.ture1 For e4a50.e wearing .ungi6 eating0anta with hi.sha 2sh on Benga.i New


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co50.ete.y higher in the western society than that o+ in

Bang.adeshi society1

c1 9or% Ethics and Persona. "a.ueThe i50ortance 0.aced u0on wor% /y an indi,idua. is %nown as

wor% ethic1 Business organi;ations counted u0on the desire to

wor% in its e50.oyees6 a wor% ethic e40ressed in dedication and

co50any .oya.ty1 =owe,er wor% ethic has changed es0ecia..y in

younger wor%ers and it is o/,ious that the attitudes o+ the

wor%ers wi.. i50act u0on the organi;ation as it recruits6 trains6

rewards6 and retains e50.oyees1

To he.0 ana.y;e the i50act o+ Socia. Conditions on Business En,iron5ent .etus ta%e the +o..owing e4a50.e1

The re0ort in Business > Po0u.ation #onitor +ro5 chartered accounting and

/usiness ad,isory 2r5 P?F6 in conjunction with Access Econo5ics e4a5ines

the i50act o+ de5ogra0hic changes on the Austra.ian /usiness .andsca0e6

detai.ing the antici0ated winners and .osers across industry ty0es and

geogra0hica. regions1

The Benefciaries o Grey Gold

The re0ort high.ights the 0rognosis that Austra.ia@s wor%ingage 0o0u.ation is

e40ected to nosedi,e in the ne4t 2,e to 8 years6 whi.e at the sa5e ti5e6

the ratio o+ o,er 's to the 8D' age grou0 wi.. a.5ost dou/.e o,er the ne4t

three decades1

P?F@s Business > Po0u.ation #onitor identi2ed a nu5/er o+ %ey areas o+

o00ortunity +or Austra.ian /usinesses1 9hi.e annua. s0ending +e.. once a

wor%er retired6 certain ty0es o+ retai.ing /ene2ted6 such as hea.th insurance6

ga5/.ing6 /oo%s6 ho5e i50ro,e5ent and e.ectronics as we.. as

co55unications and tra,e.1 =owe,er6 s0ending on c.othing and +ootwear6

cars and entertain5ent wou.d reduce1

The re0ort cited that in,est5ent in retire5ent ,i..ages and aged care

acco55odation6 in 0articu.ar6 wou.d continue to grow6 with construction o+

aged care +aci.ities to00ing 81 /i..ion in *6 u0 )H 0er cent on the

0re,ious year6 with the strongest acti,ity in Tas5ania and South Austra.ia1


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Businesses in,o.,ed with hea.th care are .i%e.y a.so to /e winners +ro5 an

ageing 0o0u.ation6 with o.der Austra.ians e40ected to .ine the 0oc%ets o+ the

hea.th industry1 New techno.ogies and 5edica. 0rocedures 0ro,ide c.ear

areas o+ o00ortunity +or /usinesses o0erating in these sectors1 Signi2cant

in,est5ents in hea.th care techno.ogy are re:uired to 5eet the de5ands o+

the aged6 who wish to 5aintain :ua.ity o+ .i+e into their senior years and are

genera..y 0re0ared to 0ay to get it1

The Impact o the Mini Baby Boom and Groin! Mi!ration

It@s not on.y the ageing 0o0u.ation that wi.. cause a seis5ic shi+t in

Austra.ia@s de5ogra0hics1 The .arge inta%e o+ s%i..ed 5igrants +ro5 o,erseas

and a 5ini /a/y /oo5@ ha,e he.0ed dri,e 0o0u.ation growth6 which in turn

has 0ushed the Austra.ian econo5y a.ong1 This6 o+ course6 has a.ready

0ro,ided /usinesses with enor5ous o00ortunities1

According to P?F@s Business > Po0u.ation #onitor6 0o0u.ation growth in the

sun /e.t@ states o+ the Northern Territory6 9estern Austra.ia and Jueens.and

is running ahead o+ the 2,eyear a,erage6 as their econo5ies ride the crest

o+ a resources and in,est5ent /oo56 with no signs o+ the growth s.owing1

#oreo,er6 5igrants D the do5inant dri,er o+ the recent u0tic% in the

0o0u.ation increase D co5e with a greater need to /uy u0 than do e4isting

residents1 New 5igrants /ring re.ati,e.y +ew 0hysica. 0ossessions with the56

and need to /ui.d their en,iron5ent anew1 As a resu.t6 new 5igrants are a.so

a 0articu.ar /ene2t to the acco55odation sector1

The "all to #ction or Businesses

The 2rst cha..enge +or /usinesses is recogni;ing that these

o00ortunities e4ist1 The second is to then do so5ething 0ositi,e a/out

it1

The ad,ice to /usinesses is to /e aware o+ the i50act o+ the ageingwor%+orce changing co50osition6 0articu.ar.y the 5ature aged s%i..ed

wor%er .ea,ing the wor%+orce and ta%ing ,a.ua/.e s%i..s and e40erience

with the51 A.so6 as go,ern5ents strugg.e under the 2nancia. /urden o+

s0ending on additiona. e40enditure6 /e 0re0ared +or increases in ta4

rates to /o.ster go,ern5ent re,enue1


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ta%e any /usiness +riend.y decision to strengthen .oca. /usiness with

the he.0 o+ o00osition 0arty1 But in unsta/.e 0o.itics go,ern5ent can do

/etter +or attracting F!I /ut i+ o00osition does not 0.ay its ro.e +ro5 a

constructi,e 0oint o+ ,iew or 0ro,ide any distracti,e 0o.itica. course o+

action .i%e6 Tric%6 iot6 Not to attend in the 0ar.ia5ent or changes a..

0o.icies decided /y the 0re,ious go,ern5ent .i%e Bang.adesh1 These

ty0es o+ 0o.itica. cu.ture ha50er go,ern5ent 0o.icy as we.. as +e.. a

/ad i50act on the /usiness en,iron5ent o+ that 0articu.ar country1

Law > order situation shou.d /e contro..ed /y the go,ern5ent1 But i+

any go,ern5ent +ai.ed to contro. this i50ortant +actor o+ /atter

/usiness outco5es than the /usiness en,iron5ent o+ that countryha50er > /usiness5en +ee. insecure than no +oreign in,estor can try

to co5e such as dead.y en,iron5ent1 By this way /usinesses as we.. as

tota. econo5y o+ that country +a.. down1 Such as China has a contro.

.aw > order situation > any in,estor ha,e a 0ositi,e thin%ing to in,est

in china which is not ensure in Bang.adesh or so5e other country@s

go,ern5ent1

Loca. go,ern5ent sign FTA with any other country1 FTA o0ens a new

5ar%et +or the nati,e in,estors /usiness5en /ut i+ any go,ern5ent@s

/usiness 0o.icy can@t /e so strong then no country wi.. sign FTA with

that country1

To sign a FTA6 the go,ern5ent o+ a country 0.ays a ,ita. ro.e through

5a%ing +riend.y re.ationshi0 with internationa. co55unity1 Thus signing

FTA go,ern5ent can en.arge its /usiness sco0e as we.. as contro.

in-ation in the nati,e econo5y1 For e4a50.e i+ we co50are Sri Lan%a

with Bang.adesh we can see that Sri Lan%a has FTA with India and

Pa%istan > they are trying to sign these ty0es o+ agree5ent with so5e

other country1 This en.arged the sco0e o+ Sri Lan%an /usiness5en to

o0erate their /usiness in 5ore countries1 Such +aci.ities cannot /eenjoyed /y any Bang.adeshi /usiness5en1

An e4a50.e o+ indicating i50act o+ Po.itica. In-uence is how6 a+ter

destroying +or5er So,iet Union we are direct.y o/ser,ing the US

inter+erence in the 0o.itica. situation o+ e,ery country around the wor.d1

They i50ose diKerent econo5ics /arriers econo5ics /.oc%ades e,en


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g.o/a. sanction o+ diKerent countries those who are not their +o..owers

or +ro5 which country they /eing una/.e to ta%e any undue ad,antage1

On the other hand they +aci.itate ,arious countries +ro5 diKerent

econo5ic and 0o.itica. as0ects those who are their +o..owers or +ro5

who5 they are ca0a/.e to ta%e undue ad,antages1

These ty0es o+ US +oreign 0o.icies ha50er the nor5a. -ow o+

internationa. /usiness1 This is not .ega. 0ractice /ut an una,oida/.e

i50act o+ wor.d 0o.itics on Internationa. /usiness1

)1 Lega.egu.atory Practices

Laws are the 0ri5ary way in which Business is direct.y aKected /y the

.ega. syste5 o+ a country1 Lega. 0ractices o+ any country ha,e a direct

i50act on the /usiness o0eration o+ that country1 For e4a50.e6 i+ there

are any /indings on the internationa. /usiness transaction +ro5 the

.ega. authority o+ any country then no co50any can /rea% down that

ru.es1

For e4a50.e we can ta%e the case o+ License aj

$icense %a&6 which re+ers to the e.a/orate .icenses6 regu.ations and

the acco50anying red ta0ethat were re:uired to set u0 and run

/usiness in India/etween 8(* and 8((1 U0 to H go,ern5ent

agencies had to /e satis2ed /e+ore 0ri,ate co50anies cou.d 0roduce

so5ething and6 i+ granted6 the go,ern5ent wou.d regu.ate

0roduction1 The License aj was a resu.t o+ IndiaMs decision to ha,ea 0.anned econo5y6 where a.. as0ects o+ the econo5y are contro..ed

/y the state and .icenses were gi,en to a se.ect +ew1 License aj

esta/.ished the irres0onsi/.e6 se.+0er0etuating /ureaucracy that sti..

e4ists throughout 5uch o+ the country and corru0tion -ourished under

this syste51
http://en.wikipedia.org/wiki/Red_tapehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Planned_economyhttp://en.wikipedia.org/wiki/Red_tapehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Planned_economy


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India had started out in the 8(s with$

a1 =igh growth rates1/1 O0enness to trade and in,est5ent1c1 A 0ro5otiona. state1d1 Socia. e40enditure awareness1

e1 #acro sta/i.ityBut we ended the 8(Hs with$

a1 Low growth rates1/1 C.osure to Trade and In,est5ent1c1 A .icenseo/sessed6 restricti,e state1d1 Ina/i.ity to sustain socia. e40enditures1e1 #acro insta/i.ity6 indeed crisis1

The architect o+ the syste5 o+ License aj was &awahar.a. Nehru6

IndiaMs 2rst Pri5e #inister1 Ins0ired /y the econo5y in the So,iet

Union6 he i50.e5ented 5i4ed econo5y in India1 A 5i4ed econo5y is

one in which ca0ita.is5 is +o..owed with go,ern5ent contro.1 Pri,ate

0.ayers cou.d 5anu+acture goods on.y with ocia. .icenses1 The

:uantity o+ goods they were a..owed to 0roduce was deter5ined /y the

.icense regi5e6 not /y +ree5ar%et de5and1

Thus we can c.ear.y see how Lega. and egu.atory Practices i50act

the Econo5y and Business o+ a Country1

1 Econo5ic Conditions

In the +unctioning o+ a Business Enter0rise we can see that an

organi;ation 5a%es use o+ resources in0ut +actors3 to 0roduce goods

and ser,ice out0ut31 A.. this ta%es 0.ace within the genera. econo5ic

en,iron5ent6 which aKects each o+ these +actors1

Few o+ those +actors are$

a1 Econo5y

As0ects o+ the econo5y which 5ust /e considered /y the

5anage5ent as it 5a%es decisions are$


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i1 The e4isting stage o+ econo5y and the stage o+ the

Business Cyc.e1ii1 The ates o+ Growth o+ GNP and Per Ca0ita Inco5e1iii1 ates o+ Sa,ing and In,est5ent1i,1 "o.u5e o+ E40orts and I50orts1

,1 In-ation ate1,i1 Interest ate1,ii1 Go,ern5ent Budgetary A..ocations1,iii1 Changes in !istri/ution o+ inco5e and 9ea.th1

/1 Custo5ers

The 0ri5ary +acet o+ E4terna. Econo5ics di5ension is a 2r5@s

custo5ers1 The goa. o+ the decision 5a%ing 0rocess is to /etter

and 5ore 0ro2ta/.y reach the custo5ers1 Custo5ers see% to

ha,e the right 0roduct at the correct 0.ace6 at the right ti5e6 in

the right +or5 and at the right 0rice1 #anage5ent see%s to %nowthe identity o+ the custo5er and as 5uch as 0ossi/.e a/out the

custo5er6 who is ca..ed the target 5ar%et1

c1 Co50etiti,eness

There is no 5ono0o.y6 duo0o.y6 Tri0o.i 5ar%et o+ any 0roduct

around the G.o/e1 That 5eans in e,ery 0roduct has 5ass

co50etitors in the 5ar%et1 To /eco5e success in the co50etiti,e

5ar%et one 5ust ha,e co50etiti,eness1 Co50etiti,eness are

so5e +eatures o+ the 0roduct6 the +eatures are Di1 !istinguished :ua.ity1ii1 Outstanding 0er+or5ance1iii1 Econo5y in 0rice1i,1 Better out.oo%

An e4a50.e o+ the i50act that Econo5ic Condition ha,e on Business

Organi;ations can /e ana.y;ed with the initiation o+ the Econo5ic

e+or5s /y the Go,t o+ India in 8((8 in,o.,ing the deregu.ation and

decontro.6 Trade Po.icy Changes and o0ening u0 the econo5y to+oreign in,est5ent1 These re+or5ist 5easures ha,e 0ro,ided 5any

o00ortunities as we.. as 0osed serious cha..enges and threats o+

increasing co50etition to Indian Co50anies1


11/18

A.so the current scenario can he.0 us to understand the i50act o+

Econo5ics Factors on Business and Industry in a /etter way1 The

su/0ri5e crisis .ed to the +ai.ure o+ ,arious 2nancia. institutions and

/an%s g.o/a..y1 This G.o/a. Financia. 5e.tdown has a caused a huge

=a,oc in ,arious sectors and ,arious 5ar%ets g.o/a..y1 Current.y there

is a huge .i:uidity crunch wor.dwide and there is a huge ga0 /etween

the de5and and su00.y across the wor.d 5ar%ets1 #any 5ajor

co50anies are una/.e to 5eet their o0erationa. e40enses and are on

the ,erge o+ Ban%ru0tcy +or eg The Big Three Auto Giants o+ US6

na5e.y Ford6 G# and Chrys.er31 Countries across the wor.d are trying

to sti5u.ate de5and and are +o..owing ,arious 5easures to 5aintain

the re:uired .e,e.s o+ .i:uidity in the 5ar%ets1 "arious 5easures are

/eing ta%en u0 such as !irect Bai.out o+ Ai.ing co50anies as we can

see /y the case o+ US Go,ern5ent /ai.ing out AIG 3 or the 5easures

ta%en /y the Indian Go,ern5ent /y reducing ,arious Interest ratessuch as PL6 e0o6 e0o6 SL6 Cash eser,e atio and etc3 in order

to increase the 5oney su00.y in the 5ar%et and to /ridge the ga0

/etween consu50tion and 0roduction1

1 Techno.ogica. Ad,ance5ent

The 2na. +actor in the e4terna. en,iron5ent is that o+ Techno.ogy1 It

has one o+ the 5ost dra5atic eKects on Business6 as changes in

techno.ogy are o+ten +e.t :uic%.y /y the co50any1 A Co50any 5ay /e

thorough.y co55itted to a +or5 o+ techno.ogy and 5ay ha,e in,ested

hea,i.y in 5achinery and training6 on.y to see a new6 5ore inno,ati,e

and cost eKecti,e techno.ogy e5erge1 As seen /y the un0recedented

s0eed o+ growth o+ the Internet in the .ast 2,e years o+ the th

Century6 5ar%ets can change a.5ost o,ernight6 5uch to the distress

o+ the co50anies that +ai. to adjust to changing techno.ogy1

Techno.ogy is u0grading itse.+ so :uic%.y than that o+ our i5agination1

Te.eco55unication syste5 has re,o.t e,ery syste5 than e,er /e+ore1

Because6 on.y three decades ago co55unicating with a Euro0ean

0artner with docu5entation was one 5onth .engthy 0rocess1 But

today we are doing it within a 5o5ent1 It has a greatest i50act on


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/usiness co55unication1 9ithout ra0id co55unication no /usiness

can run s5ooth.y6 0ro2ta/.y in the co50etiti,e 5ar%et1

There are two 5ajor as0ects regarding the Techno.ogica. En,iron5ent

that a Business shou.d /e concerned a/out$

a1 Process O+ Inno,ation

The source o+ new techno.ogy is genera..y the esearch and

!e,e.o05ent >!3 o+ Pri,ate Industry6 Go,ern5ent and

Acade5ic esearch1 A Co50any 5ay decide to In,est in >!

and then 5a%e use o+ the de,e.o0ed techno.ogy or .icense it to

other co50anies1 Techno.ogica. !isco,eries can /e 0atented

initia..y +or 8* years which gi,es the in,entor the e4c.usi,e right

to 5a%e use o+ techno.ogy or in,ention1

I+ the source o+ the inno,ation is in the 0ast or e,en in current

techno.ogy .e,e.s6 it is said to /e an E,o.utionary Techno.ogica.

Inno,ation1 I+ howe,er the inno,ation does not /ui.d u0on 0ast

techno.ogy and 0resents a signi2cant shi+t +ro5 the 0ast it is

%nown as e,o.utionary Techno.ogica. Inno,ation1

/1 Techno.ogy Trans+er Process

Once a new techno.ogy has /een disco,ered6 the 5ajor issue/eco5es how to introduce it into an esta/.ished techno.ogica.

en,iron5ent1 #ost wor%ers resist new techno.ogy unti. they are

shown how this new techno.ogy wi.. 5a%e the5 5ore 0roducti,e

and 5a%e their wor% .i+e 5ore easier1 The 5ore radica. and

inno,ati,e the techno.ogy the higher is the resistance1 The

re.ationshi0 /etween Inno,ation and Techno.ogy is as +o..ows$


13/18

A use+u. techni:ue to hand.e this 0ro/.e5 is %nown asincre5enta. inno,ation which in,o.,es introducing new

techno.ogy in s5a..er incre5ents1 Each change in techno.ogy is

.ess distant +ro5 %nown techno.ogy there+ore +aces .ess

resistance1 This incre5enta. a00roach can /e seen as +o..ows$

To study the i50act o+ Techno.ogica. Ad,ance5ent on /usiness and industry

we can ta%e the e4a50.e o+ INTEL Cor0oration1

Inte. is the wor.d@s .eader in si.icon inno,ation1


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Inte. is /est %nown +or 0roducing the chi0s that de.i,er this increased

co50uting 0ower1 Co50uter chi0s are essentia..y co..ections o+ transistors

tiny e.ectronic de,ices that contro. the -ow o+ e.ectricity to create the 8s and

s that under0in co50uting1

Transistors are the /ui.ding /.oc%s o+ co50uter chi0s that Inte. has /een

5a%ing +or years1

Inte. has /een wor%ing to 5a%e these transistors s5a..er so that 5ore o+

the5 cou.d /e 2tted onto the sa5e area o+ si.icon6 5a%ing the chi0s 5ore

0ower+u.1 This ca5e at a 0rice1 Unti. recent.y6 the s5a..er the transistors6 the

hotter the chi0s tended to run1 In * Inte. de,e.o0ed a /rea%through in the

5ateria.s used to construct the transistors1 Not on.y can these transistors

wor% +aster6 they can a.so do this whi.e generating .ess heat1 Inte. has

started to use this new 5ateria. +or its .atest generation o+ 0rocessors1 Theseare 5ade +ro5 transistors on.y nano5eters in si;e1 This 5eans o,er 6

o+ the5 cou.d 2t on the +u.. sto0 at the end o+ this sentence1 A nano5eter

transistor can switch on and oK a00ro4i5ate.y ) /i..ion ti5es a second1 A

/ea5 o+ .ight tra,e.s .ess than a tenth o+ an inch during the ti5e it ta%es a

n5 transistor to switch on and oK1

Co50etiti,e ad,antage 5eans a co50any has or does so5ething /etter than

its ri,a.s1 The tic%toc%@ strategy was announced in Se0te5/er ' /y

Inte.@s CEO6 Pau. Ote..ini1 It is a /.ue0rint +or Inte. to 5aintain its techno.ogy

.eadershi0 and co50etiti,e ad,antage1 It 0.ans to ta%e ad,antage o+ Inte.@s

0roduct research6 de,e.o05ent and 5anu+acturing ca0acity to de.i,er

i50ro,ed 0roducts e,ery year1 This regu.ar i50ro,e5ent wi.. ensure

continued 5ar%et .eadershi01 In tic%@ years Inte. wi.. introduce a new

5anu+acturing 0rocess o+ which the n5 0rocess is the .atest31 Toc%@ years

wi.. see the introduction o+ new designs architectures3 o+ CPUs centra.

0rocessing units31

Inte. is co50etiti,e /ecause$


15/18

Q It has a regu.ar cadence or rhyth53 to the de,e.o05ent o+ new 0roducts or

i50ro,e5ents to e4isting ones1

Q It integrates tea5s +ro5 >! and a.. areas o+ 5anu+acturing6 a.. wor%ing to

the sa5e schedu.es1 Inte. is the on.y co50any that can co5/ine and

o0ti5i;e 5anu+acturing 0rocess techno.ogy6 0roduct design6 .eadingedge

ca0acity6 design too.s6 5as%s and 0ac%aging inhouse1

Q It sets the highest standards in high:ua.ity c.ean 0roduction1 The co50any

in,ests ,ast su5s in >! and 5anu+acturing1 This 5a%es it is dicu.t +or

ri,a. co50anies to 5atch Inte.1

Q It designs :ua.ity 0roducts1 Inte. continua..y de,e.o0s new techno.ogies

that co5/ine 0roduct.ed6 user.ed6 and 5ar%et.ed +eatures1

Q It is a/.e to .e,erage its 5anu+acturing ca0a/i.ity1 This 5eans it can

increase 0roduction to /ring 0roduct to 5ar%et in .arge ,o.u5es1 Increasing

,o.u5e and getting the 0roduct onto the 5ar%et as :uic%.y as 0ossi/.e are

i50ortant e.e5ents in creating and 5aintaining a co50etiti,e ad,antage1

In order to 0rotect its ad,antage it is essentia. that Inte. registers inte..ectua.

0ro0erty and 0atents in new 0roduct de,e.o05ent1 This registration is ,ita.

+or Inte.1 This gi,es .ega. 0rotection against co0ying /y its co50etitors1 The

0rotected ti5e a..ows it to se.. its 0roducts without direct co50etition1 These

he.0 to reco,er the in,est5ent costs o+ designing6 researching and

de,e.o0ing the new 0roducts1

INTENAL EN"ION#ENTAL FACTOS


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81 LandGenera..y .and 5eans soi. /ut in /usiness .and inc.udes e,erything inside the

+actory .i%e /oundary o+ .and6 si;e o+ /ui.ding6 5achinery insta..5ents etc1

1 La/or9or%+orce is another ,ita. e.e5ent o+ 0roductions and other /usiness

o0erations1 S%i..ed 5an0ower is not a,ai.a/.e e,erywhere /ut 5an0ower can

/e s%i..ed u0 through a 5arathon coaching o+ re.ated tas%s1 At the sa5e ti5e

we wi.. ha,e to thin% a/out the wages6 wor%ing en,iron5ent6 jo/ security6 jo/

satis+actions o+ the wor%ers1

&o/ satis+actions can 0ro,ide /est 0er+or5ance as we.. as creati,e out0uts1

La/ors can /e satis2ed through oKering diKerent 5oti,es1 It 5ay /e 2nancia.

rewards and 5enta. su00orts1

)1 Ca0ita.Ca0ita. 5eans 2nancia. .i:uidity o+ the organi;ation1 Fund 5ay /e co..ected

+ro5 diKerent sources1 Such as D

a3 Fu..y owned ca0ita.

/3 Through 0artnershi0 agree5ent

c3 Ta%ing .oan +ro5 the 2nancia. institutions

d3 Co..ecting ca0ita. +ro5 ca0ita. 5ar%et

e3 &oint ,enture +und co..ection +ro5 +oreign 5ar%et

Co..ecting +und is not the 2na. tas%s +or 0ro0er /usiness o0erations1 Because

0ro0er uti.i;ation o+ the +und i1e1 ca0ita. 5anage5ent +unctions ha,e to /e

o0erated ecient.y1

1 Business LocationBusiness .ocation is a 5ajor +actor +or success+u. o0eration o+ any /usiness1

Location shou.d /e se.ected /ased on the +o..owing criterions$

a3 Trans0ortation +aci.ities

/3 A,ai.a/i.ity o+ raw 5ateria.s

c3 A,ai.a/i.ity o+ .a/ors

d3 Security

Better trans0orting +aci.ities resu.t in :uic% co55unication which is an

essentia. +actor +or e,ery /usiness1 Business .ocation shou.d /e se.ected a+ter

thin%ing a,ai.a/i.ity raw 5ateria.s6 s%i..ed .a/or +orce and high security1

1 Owners@ E:uityOwners@ e:uity is that 0ortion o+ ca0ita. where .ia/i.ities are not inc.uded1

On.y se.+ owned and other /usiness oKered +aci.ities are inc.uded here1


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A!!ITIONAL INFLUENTIAL FACTOS IN

INTENATIONAL BUSINESS EN"ION#ENT

As stated a/o,e a.. +actors wi.. /e a00.ica/.e +or the Internationa. Business

En,iron5ent1 There are 5any 5ore +actors shou.d /e added +or Internationa.

Business En,iron5ent1 These are as +o..ows$

a3 egiona. coo0eration associations .i%e SAFTA6 NAFTA6 EU etc1

/3 9TO

c3 UN Acti,ities

d3 Current wor.d order

e3 Internationa. ru.es > regu.ations

egiona. Coo0eration AssociationThere are 5any regiona. coo0eration associations are a,ai.a/.e around the g.o/e1

These associations are contro..ing their res0ecti,e regiona. /usiness +unctions1 For

e4a50.e SAFTA6 NAFTA6 EU6 ASEAN etc1

SAFTA

SAFTA Stands +or South Asian Free Trade Area1 It creates a +ra5ewor% +or the

creation o+ a +ree trade ;one co,ering 81 /i..ion 0eo0.e in India6 Pa%istan6 Ne0a.6 Sri

Lan%a6 Bang.adesh6 Bhutan and #a.di,es1 The se,en +oreign 5inisters o+ the region

signed a +ra5ewor% agree5ent on SAFTA with ;ero custo5s duty on the trade o+

0ractica..y a.. 0roducts in the region /y end 81

NAFTA

The North A5erican Free Trade Agree5ent NAFTA3 is a co55ercia. agree5ent

a5ong Canada6 the United States o+ A5erica6 and #e4ico which 0ro5ised +ree trade

and easier -ows o+ ca0ita. a5ong the signatory nations1 This co55ercia. /usiness

agree5ent contro.s their internationa. /usiness a .ot1

ASEAN

The Association o+ Southeast Asian Nations ASEAN3 is a 0o.itica. and econo5ic

organi;ation o+ countries .ocated in Southeast Asia1 ASEAN was +or5ed on August H6

8('* /y the Phi.i00ines6 #a.aysia6 Thai.and6 Indonesia6 and Singa0ore6 as a dis0.ay

o+ so.idarity against co55unist e40ansion in "ietna5 and insurgency within their

own /orders1 Fo..owing the Ba.i Su55it o+ 8(*'6 the organi;ation e5/ar%ed on a

5ission o+ econo5ic coo0eration6 which -oundered in the 5id8(Hs on.y to /e

re,i,ed around a 8((8 Thai 0ro0osa. +or a regiona. +ree trade area1 The countries

5eet annua..y1


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9TO

The 9or.d Trade Organi;ation 9TO3 is an internationa. organi;ation that esta/.ishes

ru.es +or internationa. trade through consensus a5ong its 5e5/er states1 It a.so

reso.,es dis0utes /etween the 5e5/ers6 which are a.. signatories to its set o+ trade

agree5ents1

49146003 influential factors of international business and international business environment

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