Globalization Paper

Thomas Raczka

10/1/2012

MNGT 370

Globalization paper

Environmental Factors for Globalizing a Business

When considering the globalization of a business, there are several factors one should consider when making a decision on how to run that business globally. The first factor that should be taken into consideration are social factors which, for example, can provide insights into behavior patterns of a population. Second, the next after that are legal factors which can influence business strategies related to changes in government laws and regulations. Finally, the third factor involves technological factors which greatly influence business strategies as they provide opportunities for businesses to adopt new innovations, and inventions. Companies find it very important to understand these three factors while developing a business strategy for globalizing businesses.

The first factor for considering the globalization of a business is with social factors. This kind of factor is related to changes in social structures and provides insights into behavior, tastes, and lifestyle patterns of a population. Patterns for how products are bought are greatly influenced by the structure of the population and the consumer's lifestyle. A consumer's age, gender, etc can all determine the buying patterns and understanding the changes is critical for developing business strategies which are in line with the market situation. In other words, for every country that a business wants to become involved in must understand everything about potential consumers when developing their business strategies.

After that, the second factor are legal factors which influence business strategies related to changes in government laws and regulations. To have a successful business operation it is important that businesses to consider the legal issues involved in a particular situation and anticipate the ways in which changes in the laws affect the way they must behave. Laws keep...