Global Business: Environmental Factors


The current business environment has become a complex and competitive field that has forced businesses to be very strategic in their corporate affairs in order to survive. Indeed, due to the opportunities in foreign markets, globalization has become the norm; however there are various factors that should be taken into account before the strategy is implemented. The business environment is very dynamic and unpredictable at times and since the business depends on the environment, both internal and external, managers should be able to check on the shifts in environment and propel the business to the right direction. Once the business intends to go global it should be prepared to face new challenges in the international markets and these calls for effectiveness in management. This paper discusses what are the environmental factors a firm needs to consider if the business is to globalize.

Environmental Factors

The business needs to check on external environmental factors which include but are not limited to competition, resources to be used, technology and the economic situation to be experienced by the organization (Daft 64). The external environment is firstly grouped into general and task environments. The general as the name suggests is diverse and will only affect the business indirectly; they are social, economic, legal/political, international, natural, and technological. These general factors are common factors and they have equal impact on all business ventures in the international market. The task environment on the other hand is that which affects the running of the business operations and performance directly. Some of the factors include competition, labor, supply, demands and market factors. The business also needs to address internal environmental factors which are within the business and include workers, managers, corporate culture and adaptation of the business to the markets.

Delaney (para.3), in his article ‘20 factors to be considered before going global’ gives the factors as; first, getting the company whole commitment where all departments should be in common agreement on the decision. This will facilitate the unity to tackle all the challenges that may be faced during the exercise. He also considers the definition of the business plan for the access of global markets which helps to know the business status, goals and commitments. It also helps to plan the achievements and results.

Another factor is, know the amount to invest and the returns. This can be determined through two principals, percentage of domestic profits or pay as you can afford process. Planning a two-year lead for the market will enable businesses to have enough time to establish itself in the global competitive market. Indeed, the plan should be implemented properly and strategically. Globalization also calls for the establishment of a website which will effectively market the business online. The language of communication should also be chosen well for effective communication to take place.

The product to be traded must also be conducive to the market. The product should suit the market and the business should aim at its betterment and efficiency (Delaney para.7). Moreover, enough research must be carried out to know the possible targets and needs of the product. This will include the sales, packaging, sorting and prices among others. Preparing the product to suit the global market should also be considered.

Customers are the ones to sustain the profits. They should be identified by the business prior to introduction to avoid introducing the wrong product. For the products or services they need to exportable or made in the extended countries of interest (Daft 64). This should be analyzed before the markets are ventured into. Services to keep the business in the global markets such as a competent lawyer, banking services, transport and skilled personnel in the global market should be considered seriously.

Business ethics should also be highly upheld at all times and the culture of the global market analyzed to avoid cross cultural conflicts (Delaney para.9). Customers should be handled with professionalism and courtesy with the required procedures. The business should also major in cross-border alliances and global partnership.


Global business should always be handled with care since it involves numerous investments that should be handled with care. Management should be effective and all the environmental factors discussed should be applied to ensure that the global business grows successfully.

Works Cited

Daft, Richard L. & Lane, Patricia. Management. Ed.9. Ohio, Cengage Learning. 2009. Web.

Delaney, Laurel. “20 factors to be considered before going global.” Entrepreneur. 2004. Web.

Find out the price of your paper