Current Trends and Issues

Globalization Ethics Workforce diversity Entrepreneurship E-Business Knowledge Management Learning Organization Quality Management

Organization and environmental Factors

Organization Definition: According to Ralph C. Davis, Organization is a group of people who cooperate under the direction of leaderships, for the accomplishment of a common end. According to Gary Johns, Organization are social inventions for accomplishing goals through group effort.

Environmental Factors
Every business organization has to interact with its environment. Hence, both the business and environment are totally interrelated and mutually interdependent. There are two broad components of business environment 1. Internal environment 2. External environment

Internal environment
Internal environment refers to factors existing within a business firm. The internal factor are generally regarded as controllable factors because the company has control over these factor. There are number of internal factor which influence the business decisions are as follow

Financial resources Physical and human resources Objectives of Business Managerial Policies Morale and commitment of Human resources Work environment Brand and corporate image Labour management relationship Technologies and R & D capabilities Promoters vision

External Environment
The external environment refers to the factors existing outside the business firm. The term business environment is often used to refer to the external environment of business. The management of an enterprise confronts two kinds of environment 1. Micro Environment 2. Macro Environment

Micro Environment
The forces which are close to the company and affect its ability to work constitute micro environment It is known as operating environment of business. 1. Suppliers 2. Customers 3. Competitors 4. Marketing Intermediaries 5. Public

Macro Environment
Macro environment means general environment of business. Macro forces are uncontrollable in comparison to the main forces of environment. 1. Socio-cultural environment 2. Legal environment 3. International environment 4. Political environment 5. Technological environment 6. Economic environment 7. Natural environment

STRATEGIES FOR INTERNATIONAL BUSINESS

Generally, MNEs choose from four basic strategies to guide how they will enter and compete in the international environment.

Four Basic Strategies for International Business.

International company strategy Multinational company strategy Global company strategy Transnational company strategy

International Company Strategy

In this strategy company extends Marketing, Manufacturing, and other activity outside the home country. When a company to pursuer opportunities outside the home country, it has evolved into this category. In spite of its pursuit of foreign business opportunities, the international company remains ethnocentric, or home country oriented, in its basic orientation. The Focus of international company is on the Home-Country.

Multinational Company Strategy

In time, the international discovers that differences in markets around the world demand an adaption of its marketing mix in order to succeed. When a company decides to respond to market differences, it evolves into a multinational that pursues a multi domestic strategy. The Focus of the multinational company is multinational or in strategic terms, multi domestic i.e., the company formulates unique strategy for each country in which it conducts business. The orientation of the country shifts from ethnocentric to polycentric.

Global Company Strategy

The global company makes a major strategic departure from the multinational. The global company will have either a global marketing strategy or a global sourcing, but not both. It will either focus on global markets and source from the home or a single country to supply these markets, or it will focus on the domestic market and source from the world to supply in domestic channels.

Transnational Company Strategy

This strategy aims to simultaneously exploit location economies, leverage core competencies, and pay attention to local responsiveness. It is arguably the most direct response to the growing globalization of business. The transnational corporation is much more than a company with sales, investments, and operations in many countries. This company, which is increasingly dominating markets and industries around the world. The transnational company is Geocentric in its orientation; it recognizes similarities and differences and adopts the worldview. This is the company thinks Globally and acts locally.