Global Business Environment

What are the PESTLE factors analyzed in the Global Business Environment?

Political, Economic, Sociocultural, Technological, Legal, and Environmental factors.

What implications do global risks such as extreme weather events have on the business environment?

They represent significant challenges that businesses must prepare for in their strategic planning.

What are the main reasons for Tesco's failure in the United States?

Misreading the U.S. Market, Poor Location and Store Format, Poor Understanding of U.S. Consumer Behavior, Cultural Disconnect.

What is a key characteristic of the operational environment for businesses?

It includes factors such as customers, suppliers, creditors, and competitors.

How does business activity transform inputs into outputs?

By converting resources like land, labor, materials, and technology into goods, services, ideas, and information for consumption.

What are some current trends affecting the global business environment?

Tight labor market, rising wages, and the growth of the gig economy.

What are the dimensions of the global business environment?

Legal, Financial, Economic, Political, Cultural, Technological, and Ecological aspects.

What is the 'business environment'?

The business environment refers to all external forces affecting an organization, including economic, political, legal, social, technological, and ecological factors.

Why is understanding the business environment crucial for organizations?

It allows organizations to analyze risks and opportunities, informing their strategic planning and operations.

What is a 'complex adaptive system' in relation to the business environment?

A structure with many independent elements that interact, adapt, and evolve over time, influenced by external factors.

What is the purpose of SWOT analysis?

SWOT analysis identifies an organization's strengths, weaknesses, opportunities, and threats to inform strategic planning.

What are the key aspects or perspectives of the business environment?

Political, economic, legal, social, technological, ethical, and ecological.

What does the term 'eclectic approach' imply in analyzing the business environment?

An eclectic approach considers multiple perspectives and their interrelationships rather than treating them as isolated elements.

What factors influence the external environment according to the lecture?

Consumer behavior, competitor actions, government policies, technology advancements, and social and cultural contexts.

How do political and economic changes impact businesses?

They can drastically alter market conditions, regulatory frameworks, and competitive dynamics, affecting overall business strategy.

What is the significance of the EU services directive?

It aims to remove barriers for service provision across EU borders, enhancing competition and consumer choice.

What are third-sector organizations?

Non-profit organizations that occupy the space between the public and private sectors, funded predominantly through private and voluntary sources.

What describes fourth-sector organizations?

Organizations that blend profit-making objectives with social or environmental objectives, often operating as social enterprises.

How does globalization affect local businesses?

Globalization increases competition from foreign companies and influences local market dynamics, pricing, and service offerings.

What is the role of technology in the modern business environment?

Technology drives innovation and efficiency, affecting how businesses operate and compete both locally and internationally.

What caused the financial crisis of 2008?

It stemmed from the collapse of risky sub-prime mortgage-backed securities, leading to widespread failures in financial institutions.

What are some consequences of the 2008-9 world recession?

Increased unemployment, declining consumer spending, business failures, and economic stagnation in many regions.

Why do some businesses prioritize corporate social responsibility (CSR)?

Businesses prioritize Corporate Social Responsibility (CSR) because it helps them do good while doing well — benefiting society and the environment while also helping their business succeed.

What examples illustrate socio-cultural changes due to globalization?

Increased cultural diversity in cuisine, the dominance of western culture, and the revival of religious influences on business.

What is the 'clash of civilizations' theory proposed by Huntington?

It posits that future conflicts will be rooted in cultural and religious differences rather than ideological or political ones.

How does stakeholder theory relate to business responsibility?

It emphasizes that businesses should consider the interests of all stakeholders, not just shareholders, in their decision-making.

What shift in economic policy consensus occurred due to the 2008 recession?

A temporary return to Keynesian economic principles advocating for government stimulus to encourage demand during downturns.

How might a slow recovery from recession impact a charity like Oxfam?

It could lead to reduced donations and funding, hindering the organization’s ability to deliver aid and support.

What challenge do businesses face with international competition?

They must adapt to varying market conditions and constantly changing global trade dynamics.

What does interdependence among economies imply?

The economies of different nations affect each other, influencing growth rates, market stability, and policy decisions.

How do cultural identities persist despite globalization?

Distinct cultural practices and beliefs remain strong, leading to a blend of both convergence and diversity in global culture.

What effect does technology have on communication in businesses?

It enhances global connectivity, allowing for real-time information exchange and collaborations across borders.

In what ways can businesses influence their external environment?

By engaging in advocacy, adapting practices to be more sustainable, and contributing to social causes.

What role do international institutions play in the global economy?

They facilitate coordination among countries, influencing trade agreements and economic policies.

Why are environmental and ethical considerations becoming more prominent in business?

Increasing consumer awareness and demand for sustainable practices are pressuring businesses to act responsibly.

How do global inequalities relate to globalization?

Globalization can exacerbate inequalities, as some countries benefit more than others from trade and economic integration.