global1.ppt

7/24/2019 global1.ppt

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http://www.bized.co.uk

Copyright 2007 Biz/ed

Global Factors Influencing

Business Strategy


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Global Factors InfluencingBusiness Strategy


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Strategy


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Strategy

Key strategic decisions relate to:

Access to international markets

Spotting new markets Building exports

Te extent to wic te business will becompetiti!e in international markets

Te effect on decision making of teexistence of trade blocs

"onsideration on te necessity andimportance of ac#uisitions


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Trade Blocs

Trade Blocs influence te ease of access tonew markets and affect te relati!e costs of

trading in different regions of te world$ %&

'AFTA

(ocating witin a trading bloc could elp to

reduce long term trading costs )e*g* +apanesecompanies building plants in te &, to elpo!ercome exposure to te "ommon %xternalTariff-


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International Growt

Growt not .ust troug expansion of te si/e of tefirm but also troug external growt$

Ac#uisitions mergers0 takeo!ers

1ulti2'ational "orporations global presence Brings wit it a range of issues for te business to

consider 2 3%ST


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Factors


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Factors

,ey factors influencing globalbusiness strategy can be

summarised under te 3%STeading$

olitical

!conomic "ocial

#ecnological


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3olitical

3olitical "ange regime cange troug coup0!iolence0 etc* "ange in go!ernment troug democraticelection can influence future business strategy*

e*g* te opportunities tat are now a!ailable in 4ussia and%astern %urope following te collapse of communism

3olitical &ncertainty in countries like 5imbabwe0Sudan0 6ene/uela* 3olitical uncertainty can lead to a fallin in!estment by businesses and influence decisions onexpansion and business !entures

7ar8Terrorism create uncertainty

3olitical 9octrine can affect te ease wit wicbusiness is conducted


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%conomic All tese factors need to be considered in any

global business !enture$

Tax Systems

In!estment "onsiderations and Allowances

Sopistication of Financial 1arkets ease wit wiccapital can be mo!ed and raised

"ommodity 3rices oil0 energy0 metals

1onetary and Fiscal 3olicies interest rates0 tax

regimes0 go!ernment aid Internal 4egulation and Bureaucracy can be

stifling:

%xcange 4ates


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Social 4eligious "onsiderations

appropriateness of somebusiness !entures e*g*selling condoms in stauncly"atolic countries

Impact on local communities ofbusiness de!elopment a!ailability of .obs0 training0en!ironmental impact for tesecommunities

Impact on te en!ironment

can impact on te businessesimage

%tical considerations

"ultural issues

Te impact on te local en!ironment not onlyaffects uman communities but can also inflictwidespread ecological damage* Tis imposes socialcosts on te en!ironment but also can cost tebusiness large sums in legal costs andcompensation*

"opyrigt$ 3otolibrary Group


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Tecnological

A!ailability and de!elopments in tecnologycan a!e a powerful influence on globalbusiness strategy$

e*g*

Access to bandwidt

3" ownersip

Tecnology and sales processing payments and

sales

"ompatibility of tecnologies in Business1anagement accounting systems0 languagedifferences0 etc*

Documents

global1.ppt