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Environmental factors to be considered if business is globalized
In today’s world when technology is booming many companies tend to open up branches all over the world. The distance doesn’t matter to them anymore because of planes, fast trains, internet and video conferencing. This makes connecting between distant branches quick and easy. Managers actually don’t have to travel around the world to attend meetings, they can video conference with their fellow managers to get updates and plan business activities.
Nowadays, the competition between the companies is high. Most businesses are getting outsourced in order to maximize their profits. They go to different countries where they can get the cheapest labor and supplies. However, going global is not that easy. Businesses need to consider environmental factors if they want to globalize their companies and be successful.
Around the world economic development varies in different countries. We have developed countries and are developing others. While opening a new branch in a different country we should know the market and the demand for the product we want to introduce and sell to the people. Sometimes out products might need adjustment. For example, some cultures don’t eat pork, so we can substitute that with chicken, beef or lamb. Furthermore, good knowledge of the infrastructure of the country plays a key factor in communication. There are a lot of countries that lack the existence of good roads or highways. They also have poor availability of telephone lines and internet. We need to remember that unfortunately without good infrastructure our economic activities will have no support.
Moreover, cultural characteristics play very important roles in influencing international organizations. Language, social organization, education, people’s attitudes and habits are the factors that are going to affect businesses and their productivity. For example if we are planning to open up business in a predominately...