Cross-Cultural Management

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nEpisode 67: Social environment

nSocial environment refers to societal behaviors, practices, customs, beliefs, norms, demographics and consumer preferences. Each society has its unique social settings, which may affect the commercial activities. A company should adjust and utilize its external social situation to survive (Alanis Business Academy, 2012a). In fact, it must be conversant with social preferences related to its wants and needs. Such needs and preferences will be influenced by a populations practices, beliefs, and values. For instance, an alteration in values and beliefs towards a particular product may establish an adjustment in consumer preference. Some of these factors create risks or opportunities for the company. Additionally, fashion is often affected by social preferences; hence, the corporate must be aware of such inclinations. If businesses are unable to adapt to shifting social preferences, it may experience a decline in its sales (Alanis Business Academy, 2012a). The organization must also focus on the demographic changes in a particular culture such as population ages, ethnic groups, and religion, which may affect the industry.

nEpisode 69: Global business environment

nThe global business environment refers to situations in various sovereign nations with these factors affecting decision making on companys use of resources and capabilities. International forces are likely to alter the running of firm (Alanis Business Academy, 2012b). For instance, the political unrest in the Middle East is expected to cause huge effects on global fuel prices, which have a substantial influence on company. The political environment has a significant impact on business regulations and the purchasing capacity of consumers. In additional natural disasters such as earthquake causes severe losses in industry because they destroy communication channels and supply networks. Similarly, international economic conditions such as debts in countries like Greece. Moreover, new government policies have an impact on business operations (Alanis Business Academy, 2012b). For instance, firms working in the European Union must embrace regulations and directives enacted by the EU. Therefore, businesses should pay close attention to the stability of governments policies and political environment on the economy.

nThe legal framework in the global business environment is also likely to affect company strategies associated with alteration in government regulations and laws. For an effective commercial activity, it is essential for companies to pay particular attention to legal issues particularly on employment, safety and health, environment and consumer protection laws (Alanis Business Academy, 2012b).

nEpisode 70: The Technological Environment

nTechnological changes affect business operations. Some businesses take advantage of technological changes to enhance processes and products or even establish new practices and product that will expand profits and markets (Alanis Business Academy, 2012c). Technology also provides a wide range of opportunities, which can be used to increase the market share. Some of the companies that have leveraged e-commerce technology include e-bay, Netflix (DVD mail order and streaming, Apple, Amazon, and Blockbuster. Networks of information technology have an extresmely transformative effect on the current world economy. They reshape the manner in which businesses market or generate goods. Technology has also strengthened interdependence between companies and has fast-tracked economic activity (Alanis Business Academy, 2012c).

nAdvancement of technology has played a critical part in the globalization of businesses. In this regard, business can communicate easily in different parts of the world. In addition, they have enabled the resources transfer on an international scale. For instance, innovations such as instant access ease the integration of investments through enhancement in communications, logistics, and transportations (Alanis Business Academy, 2012c). More importantly, a business must modify their operations to satisfy the needs of new markets. Companies incorporate new technologies such as software packages in their everyday production cycle and operations to achieve business competitiveness (Alanis Business Academy, 2012c).

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nReferences

nAlanis Business Academy. (2012a). Episode 67: The Social Environment. YouTube. Retrieved 25 January 2018, from https://www.youtube.com/watch?v=rXty8_fMjk4

nAlanis Business Academy. (2012b). Episode 69: The Global Business Environment. YouTube. Retrieved 25 January 2018, from https://www.youtube.com/watch?v=mcmsSVLQIXk

nAlanis Business Academy. (2012c). Episode 70: The Technological Environment. YouTube. Retrieved 25 January 2018, from https://www.youtube.com/watch?v=7tlakIxR2q0