An Introduction To Business Environment

Business Essay
Published: 23rd March, 2015 Last Edited: 23rd March, 2015

This essay has been submitted by a student. This is not an example of the work written by our
professional essay writers.

Business environment may be distinct as the set of external and internal factors which affect the
decision of business. We can split business environment into two parts. The Micro Environment
of Business are powers which are extremely interrelated with company and company can direct
these type of environment by improving its capability and effectiveness. Suppliers are the party
who supply raw material to corporation; customers are the people who buy goods from
corporation; Market intermediaries are those groups who facilitate company to sell its products;
financial intermediaries are those institutions who provide loan, credit and move forward to
company. Macro environment of business means all external factors which influence company
and its business and there is no direct of company on these factors. In economic environment, we
can contain government budget, import and export policies, economic arrangement and
economic situations.

In political and government environment, we can comprise legislature's decisions, executive's

decisions and judiciary decision which influence company's dealings. Socio-cultural
environment include morality, belief, education, fitness of peoples and family importance. In
natural environment, we can take in season, place elements, natural resources etc.Â

Task 1
1.1: Purposes of different types of organization
The way to make money is to go into trade. Then you are rewarded for the risks you take with
the skills and information that you have. The simplest form is that of a sole proprietor. But when
it comes to limited companies there are more regulations. You are not alone so it is not only
regarding you. The corporation becomes the entity. You are in employment by the corporation
even if you are the biggest investor. So your first duty is to the company. And for that the
business pays you a pay. If you do really well for the company and create amazing value, you
can be paid a bonus. An NGO is not a trade. It is based on social welfare. It belongs to ALL the
members.

Angelo Americans are loyal to delivering operational excellence in a secure and liable way,
adding value for investors, employees, governments and the communities in which they deals.
1.2: Extent to which Angelo Americans meets the objectives
of different stakeholders
Business objectives:
Business objectives are the ends that Angelo Americans sets out to attain. A business creates
business strategies to allow it to achieve these ends, thus strategies are the way to the ends. The
objectives and strategy that an Angelo Americans creates are determined by balancing the
necessities of the different stakeholders in the association. The stakeholders are those persons
and groups that are affected by and have a concern in how the business is run and what it
achieves. Every business has a variety of stakeholders. The objectives that a company establishes
are based on amalgamation of various interests of these stakeholders grouping. For example, an
objective to be the market leader will help all stakeholders as customers will obtain high quality
products, shareholders will obtain high dividends, and employees will receive good salary, and
so on. Angelo Americans creates a hierarchy of objectives. At the top level an organization will
often produce a 'mission' setting out the intention of the organization. This will be followed by a
set of objectives relating to such aspects as:

Objectives about market share.

Objectives about customer satisfaction.

Objectives about employee satisfaction

Objectives about returns to shareholders.

Objectives about cutting pollution.

Objectives about reducing waste etc

1.3: Responsibilities and Strategies use in connection with

fulfilling these responsibilities
Becoming the leading mining company Angelo American's plan is to be the leading global
mining company becoming the industry's employer, partner and investment of alternative. Sound
strategy, a promise to sustainable development and good governance are necessary to achieve
this goal. Our top priorities are safety in our operations, clearness and accountability in our
dealings.

Strategy:
We are one of the major mining companies in the world, with operations in Africa, Europe,
South and North America, Australia and Asia.
Governance:
As a worldwide organization, we comply with the main international standards of corporate
governance. We direct and organize our company in a transparent and liable way.

Sustainable development:
We made a firm assurance to sustainable development in 2000. Today, sustainable development
is fixed in our policies, strategies and everyday practices

Task 3
3.1: Impact of Competition Act on Anglo American
Anglo American plc is a British multinational mining company headquartered in London,
United. It is the world's largest manufacturer of platinum, with around 40% of world output,
and a major producer of diamonds, copper, nickel, iron ore and metallurgical and thermal
coal. It has operations in Africa, Asia, Australasia, Europe, North America and South America.

First and primary among the changes has been the new Competition Act. This was passed in
1998, triggered the 1999 change in name of the Monopolies and Mergers Commission to the
Competition Commission (the significance of which I will return to shortly) and came into force
on 1st March this year. This include two new prohibitions, the so-called Chapter I prohibition on
anti-competitive agreements by firms-primarily, but by no means only, personal cartel activities-
and a Chapter II prohibition on abuse of a leading position in a market, covering such matters as
exploitation of purchasers through extreme prices, predatory pricing, undue discrimination etc.

Under the new Act, the Director General of Fair Trading may examine alleged breaches and, if
he finds either of the prohibitions have been breached, has powers to fine the company or
companies concerned up to 10 per cent of their annual revenue for up to three years if the breach
has been running that long. That could simply remove some companies' profits for several years,
which in turn could have severe consequences for their share price, and could even make them
helpless to takeover. In short, these powers are very considerable and more serious even than
those under the Treaty of Rome, which limits fines to 10 per cent of revenue.

3.2: Different Markets

Perfect Competition:
In concept of perfect competition exists, however in real life only near perfect opposition can
exist. And the staple food and vegetables we buy from the market is perfect competition. In this
type of market there are many sellers and many buyers so organization's price and production
should be good enough to magnetize customers.
Monopoly:
Companies which are state owned and entrance for other players are not acceptable. If we take
example from Indian perspective there is one example we can consider of is Indian railway
which is the monopoly as there is no other contributor exercising in the same market.

Monopolistic Competition:
Let's take a general example. Look around your locality. There are some good numbers of
restaurants serving their customers. Though they might be producing same kind of recipes, the
branding would be different. And that's the catch of monopolistic competition. In this market
there are many buyers, many sellers and almost same items but different brand and fierce
competition. In this market organization can utilize price skimming or price penetration policy.

Oligopoly:

In which a market is dominated by a small number of firms that mutually manage the majority of
the market share.

Duopoly:

It is a different case of an oligopoly with two firms.

3.3: Influence of Market Forces

For the past four years as a reaction to customer demands the majority of UK food manufacturer,
retailers and fast food outlets have not been using GM ingredients. Many have already removed
ingredients resulting from GM crops such as oil and lecithin. To attain this companies have
established 'identified preserved' food chains in which the source of the raw materials is known,
and they are tracked from field to supermarket shelf. At present, soya and maize are the major
GM crops for which alternative materials have had to be sought because they are the only ones
licensed for sale in the EU. The majority of processed foods contain soya, maize or their
derivatives. The systems appear to be working well and most companies are operating to a 0.1
per cent threshold. Recent opinion polls indicate ongoing public resistance to the sale and
growing of GM food and crops. It is clear that there continues to be no demand for GM food in
the UK.

Iceland Frozen Foods was the first high lane retailer to respond to consumer concerns,
announcing in March 1998 their intention to eliminate GM ingredients from their own brand
foods. Over the next 18 months, nearly all the chief supermarkets, food manufacturers and
caterers followed Iceland's lead. Since then many companies have taken their GM policies
further to contain animal feed, derivatives such as oil, and processing aids such as enzymes.

In 2002 the Consumer Association surveyed all the major food retailers, manufacturers and
catereri to determine the extent to which these companies have successfully removed GM from
their supply chains. Most companies have a blanket ban on ingredients and derivatives. Progress
on animal products has been slower because of the short of labeling of animal feed and
segregation in this segment.

3.4: Cultural Impact

It is necessary to focus also on what people think, feel and do in and around organizations.

Managers should be concerned about how the behavior of organizational members evolves, how
employee behavior is shaped by group dynamics and social interactions. Numerous conditions
have influence on managers when making a decision. In the background one of the most
significant one is the method how employees behave and take steps in an organization. The
organizational culture is a generic term to express the set of beliefs, norms, artifacts and values
that represents the characteristics of an organization, and gives the context for behavior within it.
To maximize organizational performance needs an organizational culture that inspire employees
to learn, develop and give their very best.

Task 4
4.1: Significance of International Trade
Some case studies have revealed recent instances where UK-listed companies' operations have
had serious adverse impacts on workers' health and safety, individuals' and communities' human
rights, developing country economies, and the quality and accessibility of natural resources.
While not all mining firms commit equally disturbing acts, and some companies genuinely try to
examine the benchmarks for good governance already in place, there is persuasive evidence that
such benchmarks are unnoticed with impunity by others. None of the companies critiqued in this
report has been ousted from the LSE Main Market or AIM or been subject to a thorough official
assessment of their alleged misdeeds.

4.2: Factors Affecting Mining Companies in UK

The global mining industry is facing intensifying social, economic and political challenges,
which means companies must include more complicated scenarios into their strategic planning,
says a new study from Deloitte Touché Tohmatsu Limited (DTTL). The report is
called "Tracking the Trends 2012", and it warns of a "perfect storm" of converging global
forces, such as inexorable cost increase, unprecedented commodity price volatility, ever-
tightening rules and mounting labor shortages disturbing mining companies.

At the top of the list, is the cost of doing business. "What goes up does not always come
down. With commodity prices surging to all time highs, accelerated production has become the
mantra of most mining companies and costs are going up transversely the board," says Deloitte.
The report offers some strategies for getting costs under control, understand cost drivers,
advance capital project management, improve energy efficiency, lock in supply, and spend to
save.

Chaotic commodity prices were second on the list, and Deloitte faults China, the foremost
contributor to the multi-year boom, for preservation information that could facilitate miners to
better direct their production schedules.

4.3: EU Policies
The Organizational Dimension:
From the outset, the greatest impact on Whitehall from EU attachment was felt by a group of
Ministries that included the Foreign and Commonwealth Office (FCO), the Department of Trade
and Industry (DTI), the Ministry of Agriculture, Fisheries and Food (MAFF), and the assets. This
group effectively acted as 'lead' Departments on the most critical areas of EU business. The FCO
unspecified overarching responsibility for EU institutional questions; for communications
between Whitehall and Brussels; for the operation of UK Rep; for inter-governmental foreign
policy cooperation and for monitoring European developments in general terms. The DTI's
responsibility for external trade matters, for competition policy and, later, its leading role on the
structural Funds made European business a key strand of its activities. The Sheer scope and
density of Common Agricultural Policy decision making the both Financial and regulatory gave
MAFF's operations a strong European flavor.

The Process Dimension:

The nature of EU policy manufacture stimulated some significant change in UK policy
processes. Adaptation to the EU's novel institutional architecture and its crowded legislative
agenda posed a stern test for Whitehall since activities had to fall into line with the very different
timing, formats and methods of choice making Brussels. Much of the central administration's
response was largely in keeping with existing practice, though the passion of EU activities did
put standard operating procedures under strain. For Parliament, the handling of EU legislation
demanded new scrutiny procedures as well as means of holding the Executive to account for its
activities in a policy process that did not easily lend itself to democratic accountability. For the
Scottish, Welsh and Northern Irish authorities, the principal procedural issues revolved around
their connections and involvement in the key formal and informal decision making structures.
Introduction To Business Environment
Business Essay
Published: 23rd March, 2015 Last Edited: 23rd March, 2015

This essay has been submitted by a student. This is not an example of the work written by our
professional essay writers.

Introduction to business is a course designed to introduce the students to the principles and
functions of business. Also, it is to provide the students with a basic overview of the business
environment. Others than that, it is used to introduce the students to the concepts and
terminology of business and economics. Analyzing and studying also will be assisting by the
students with a providing background. Besides, it is to acquaint the students with the various
functional areas of the firms: economics, management, marketing, human relations, finance,
business law and how these interact.

2.0 Introduction to Business Environment

The business environment consist of the surrounding factors that either help of hinder the
development of business. It needs living person, natural resources and places and things to exist.
The sum of all these factors and forces is called the business environment. There are the five
elements in the business environment; economic and legal environment, technological
environment, competitive environment and the last is global environment. Marco environment is
the force and institution outside of the organization that can potentially affect the performance of
the organization come under the external environment of business consist of the economic
demographic, natural, cultural and political forces.

2.1 The Economic and Legal Environment

The economic and legal environment the part of the entrepreneur's risk involves in the economic
system and how the government works with or against business.

2.1.1 What can government do?

Government can do a lot to lessen the risk of starting, businesses and thus to increase
entrepreneurships and wealth. Also, another way for government to actively promote
entrepreneurships is to allow the private ownership of business. Nowadays, government is selling
those businesses to private individuals to create more wealth. The best thing the government to
develop the country is to minimize interference with the free exchange of goods and services. In
addition, the government can reduce entrepreneurial risk by passing laws that can be enforced in
court. The government can also create one currency is traded in the world market. That is, we
can buy and sell goods and services anywhere in the world using the currency. The system relies
on the honesty, integrity and high ethical standards, and it is easy to see the damage caused by
poor moral behavior and ethical business number.

2.2 The Technological Environment

Since prehistoric times, human have left the need to create tools that make their jobs easier. Few
technological changes have had a more comprehensive and lasting impact on businesses than the
recent emergence of information technology (IT) that are computers, modems, cellular phones
and so on.

2.2.1 Technology and Productivity

Technology means everything from mobile phones and computers, a variety of software
programs that will make business processes more effective, efficient and productive. There are
many effective way to produce the desired results. Efficiency means producing goods and
services using the least amount of resources. Productivity is the amount of output you generate a
given amount of input. Technology affects people in all industries, including agriculture.
Because, they have access to technology, it allows then to be more productive and make more
money working.

2.2.2 The growth of E- Commerce

Apart from this, a recent change in the most important environment is the growth of e-
commerce, buying and selling goods on the Internet. There are two main types of transactions E-
Commerce: Business-to-consumer (B2C) and business-to-business (B2B). (B2C) is a business
that produces a product to sell directly to consumers and (B2B) is a business that produces a
product to sell directly to other businesses. (B2B) E-Commerce is at least five times as large as
(B2C) E-Commerce. The rises of the internet marketing are come so fast and furious that it
attracts hundreds of competition into the fray.

2.2.3 Responsiveness to customers

The way of traditional retailers can respond to the Internet revolution is to use technology to
become more responsive to customers as a business marked the items with UPCS Product Code
(bar code) Universal, their series of lines and numbers you see in most of the packaged consumer
goods. The database is an electronic storage file where information is stored. Use a database to
store large amounts of information about the user.

2.3 The Competitive Environment

Competition among businesses has always come out, but it has never been greater than today.
Competitive advantage has been found by a number of companies with a focus on quality. The
goal for many companies is zero defects no mistake in making the product. To offer value to
customers, companies need to offer both high quality products and excellent service at
competitive prices.

2.3.1 Customer driven Organizations

Customers nowadays are very demanding and they do not just want good quality at low prices,
but they also want great service as well. Big businesses and small businesses rely on their
customers back and as a result should come out the way to make customers feel as they are the
kings of them, and theirs will and needs to be emphasized. Successful organizations now need to
listen more closely to customers to determine their wants and needs, and then tailor products,
policies and practices of the firm to meet their demands.

2.3.2 Employee Empowerment

Empowerment is meeting the needs of customers; firms must give their frontline workers the
responsibility, authority and freedom to respond quickly to customer requests. The businesses
must reorganize to help their employee's become more effective than they are now. Also,
empowered employees need to be treated as partners in the firm.

2.4 The Social Environment

Demography is the study of human population statistics with regard to size, density, and other
characteristics such as age, race, gender, and income. The U.S. population is undergoing major
changes; affect how people live, where they live, what they buy and how they spend their time.

2.4.1 Managing Diversity

The managing of diversity is an important concern for business people. Businesses are concerned
about having a diverse, workforce for two main reasons. First, a business can better serve
customers with a diverse workforce. Second, a diverse work environment brings about new,
fresh ideas and perspectives. All this affect each of everyone because each of us need to work
with people of various ages, races and backgrounds in order to be successful where we work.

2.4.2 Aging consumers

Another social issue and concern is the fact that the baby boomers are getting older, and as they
retire there will be more jobs than qualified people to fill those jobs. Businesses that cater to
aging baby boomers will have opportunity to exceptional growth in the near future.

2.4.3 Two- income families

Dual- income families play a role in the societal changes. One result of this trend is a host of
programs that companies have implemented in response to the demands of bust two-income
families. With more dual-income families, in the workforce, many employees provide child care
benefits of some types. Many companies are increasing the number of part-time workers which
the children can earn income.

2.4.4 Single parents

The rapid growth of single-parent households has had a major effect on businesses as well. Many
single parents struggle with the work-life balance, and they have encouraged businesses to
implement programs such as family leave and flextime.

2.5 The Global Environment

Two important environmental changes in recent years has been the growth of international
competition and increasing of free trade among countries. Free trade is the reduction of trade
barriers, such as the elimination of tariffs on goods brought into other countries. Cooperation
among businesses has the potential to create rapid growing global market that can generate
prosperity beyond the expectations of most people. It is very important to note that all size
businesses compete in the global market.

2.5.1 Entrepreneurship vs. Working for others

There are two ways to succeed in a business, one is to work for others, get experience and skills,
and rise up though the rank, the other riskier path is to start your own business.

Working for others businesses: As you graduate from college and choose a company, large or
small, to work for; you may be happy to know that the earning power of a college graduate far
outpaces that of less- educated individuals. Once you have the experience, you will have the
ability and opportunity; you can start your own business.

Entrepreneurial challenge: Millions of people from all over the world have taken entrepreneurial
challenge and succeeded. Woman also have the same opportunity to engage in entrepreneurship
is an attractive career path for an increasing number of women.

2.5.2 Nonprofit organization or Government agency

Nonprofit organization: A non-profit organization is an organization that goals do not include
making a personal profit for the owners or organizers.

Government agency:Government Agencies is an organization responsible for overseeing the

functions of the government clarity. Concepts and principles that are making businesses are more
efficient and are used in government agencies and nonprofit organizations as well.

3.0 Conclusion to Business Environment

As my conclusion, the business environment consists of five elements which each have different
factors of developments.

4.0 Introduction to Entrepreneurship

An entrepreneurship is for anyone that wants to start a business. It is a great way for everyone to
apply their own business skills to make a business out of a hobby and also can turn a passion into
a business. It takes to be an entrepreneur because of the issue that facing is the need to create
more jobs. There are some common characteristics that entrepreneurs have in common; self-
directed, self-nurturing, action-oriented and tolerant of uncertainty. Besides that, there are many
people decide to take the risk of becoming an entrepreneur because of the opportunity, profit,
independence and challenge.

4.1 Types of business ownership

There are three major forms of business ownership; sole proprietorships, partnerships and
corporations.

4.2 Sole Proprietorship

A sole proprietorship is the easiest kind of business to start and someone who starts is an
entrepreneur. The owner of a sole proprietorship is called a sole proprietor. The sole proprietor is
obligated to cover any payments resulting from the loans but does not need to share the business
profits with creditors. They must exhibit strong leadership skills be well organized, and
communicate well with employees.

4.3 Partnership
A business that is co-owned by two or more people is referred to as a partnership. The co-owners
of the business are called partners. There are several types of partnerships: general partnerships,
limited partnerships and master limited partnerships.

General partnership:A partnership in which all owners share business and financial obligations of
the business. All partners have unlimited liability.

Limited partnership:Is a partnership with one or more general partners and one or more limited
partners.

Master limited partnership (MLP): A corporation in that is act like a corporation and is traded on
the stock exchanges but it is taxed like a partnership and thus avoids the corporate income tax.

5.0 What should I prefer?

I prefer sole proprietorship because a sole proprietorship is an unincorporated company owned
by a single individual. Also, it is fairly easy to establish and the process of running then is fairly
simple. It does not need to share the business profits with creditors. Besides, sole proprietors
must also will to work flexible hours. They are on call at all the times and may even have to
substitute for sick employee. They must exhibit strong leadership skills, be well organized and
communicate well.

5.1 Advantages of Sole Proprietorship

The sole proprietor forms of ownership have the following advantages over other forms of
business ownership:

Easy of starting and ending the business: If you want to start a sole proprietorship is to buy or
lease the needed equipment and put up some announcements saying in the business. Also, it is
also easy to get out of business if you simply stop it. There is no one to consult or disagree with
the decisions making.

Pride of ownership: People who own and manage their own business are entitled to pride in their
work. They deserve all the credit for taking the risk and provide goods or services required.

Leaving a legacy: Business owners have something's to leave behind for future generations.

Retention of company profit:The pleasure of knowing that you can earn as much as possible and
don't have to share that money with anyone else except for the payment to the government of the
taxes.

Lower taxes:Because the earnings in a proprietorship are considered to be personal income, they
might be subject to lower taxes than those imposed on some other forms of business ownership.

Total decision-Making Authority: The sole proprietor is in total control of operations, so it can
let the person can respond quickly to changes, have the freedom of fast, flexible decision
making, which is an asset in a rapidly shifting market.

6.0 Conclusion to Business ownership

As my conclusion, the sole proprietorship is easy to be organizing because the legal requirements
are minimal. Also, the earning all are goes to the sole proprietor because the owner doesn't need
to share the firm's earnings with others. For partnerships, it is a business that co-owned by two or
more peoples. There are many types of partnerships. For general partnership, all partners have
unlimited liability. For limited partnership, a firm that has some limited partners.

7.0 Conclusion
As my conclusionfor Question 1, the business environment consists of those factors such as
strengths, weaknesses and etc. There are two types of environment that are internal factors and
external factors. The environment refers to all external forces, which have a bearing on
functioning of business. The business environment poses threats to a firm of offers immense
opportunities for potential market exploitation. The solution of the environment business will
give way to the environment business opportunities. There are five elements in the business
environment; the economic and legal environment, technological environment, competitive
environment, social environment and global environment.

As my conclusion for question 2, firstly, we have to know that to success in starting a new
business is to understanding how to get the resources you need and also find others ways of
obtaining money. The way to form your business can be success for long-term that is using the
major forms of business ownership. One of the major forms is sole proprietorship, which it can
be easy to get started in your own business. It is a business that managed by one person and
retraining all the profit. There are no special federal taxes to worry about. Another major form is
partnership. It is defined as a legal form of business with two or more owners. It has more
financial resources and pooled knowledge in the business. But, the conflicts among partners and
unlimited liability for each general partner will happened.
Micro and Macro Environmental Analysis -
Google Company
Published: 3rd October, 2016 Last Edited: 30th November, 2016

This essay has been submitted by a student. This is not an example of the work written by our
professional essay writers.

Introduction

The report consist of two sections. The first section focuses on the impact the micro and macro
environment has on Google Company, which is the largest search engine in the world. It
analyses on the factors that can be a negative or positive influence to the company. The report
will first focus and analyse on the six macro environmental factors which are economical, global,
political, socio-cultural, technological and demographical. Following the macro environmental
factors will be the micro environmental factors which are companies, competitors, customers,
public, intermediaries and suppliers. The second section focuses on the (assessment of the
organizational culture)

Importance of Macro and Micro environment factors

Macro and Micro environment factors are part of the external environment. The external
environment consists of a variety of factors outside the company doors that they typically don't
have much control over. Managing the strengths of the internal operations and recognizing
potential opportunities and threats outside of their operations are keys to business success. An
understanding of macro and micro marketing environment forces is essential for planning. It
helps a business to compete more effectively against its rivals. These factors also assist in the
identification of opportunities and threats and enables an organization to take advantage of
emerging strategic opportunities.

Macro environmental factors

Baines et al (2009: 77) highlight that the macro environment forms the basis of various elements
which formulate the larger part of the society, these factors directly impact a business. The six
macro environmental factors which are being focused on will be; economical, global, political,
socio-cultural, technological and demographical. A macro-environmental analysis includes
examination of elements and connections in the company's widest environment. Macro
environment refers to those factors which are external to company’s activities and do not concern
the immediate environment. It comprises general forces that affect all business activities in
market. The macro environment cannot be controlled by the organisation and hence the business
needs to adapt to the needs of the macro environment (Johnson et al, 2011: 65).
The economic environment constitutes of economic conditions, economic policies, and the
economic system that is important to external factors of business. The economic conditions of
the country includes the nature of the economy of the country. The general economic situation in
the region, conditions in resource markets like money, material, market raw material
components, services, supply markets and so on which influence the supply of inputs to the
organisation, their costs, quality, availability and reliability of supply of products and services. It
determines the economic strength and weakness in the market. The purchasing power of the
individual depends upon the economic factors like current income, price, savings, circulation of
money, debt and credit availability. People income distribution pattern analyses the market
possibilities and impacts on enterprise and development process of the country. The availability
of economic resources of the country and the level of the economic income of the country may
also have impacts on the enterprise. These are the very important determinants of business
strategy in the organisation for formulating, implement and controlling of economic policies.
Economic environment refers to the nature and direction of the economy within which business
organisation are to operate. For instance, in developing country, the low income may be reason
for the very high demand for the product and services of the business. In countries where the
investments and income are steadily and rapidly rising, business prospects are generally bright
and further investments are encouraged. In developed economics, replacement demand accounts
for a considerable part of the total demand for many consumers durables whereas the
replacement demand is negligible in the developing countries. The economic conditions of a
country control the spending power of individuals and hence the net income of a technology
based organisation is negatively impacted by adverse economic conditions (Morrish, 2011: 113).

Gross domestic products (GDP) have been on the top since a very long time. They are increasing
annually at the average rate of 3.20% reaching a high level of 17.20% at times. Countries like
China, India, South Africa, and United Kingdom have had increases in their GDP each year since
1970 and this is a positive factor for Google. With the stable and continued growth of those
countries, Google’s internal and external investments will always be high in numbers. The
amount of users around those counters can impact on Google positively and lead them to
establish better services and more products for their users leading the it being a strength to
Google economically. Interest rate can have a positive or negative impact on any organization,
these impacts are decided depending on a company’s dealings. Google is a company that relies
on investments, this means when interest rates increase gradually in a country, Google benefits.
In United Kingdom, the rate average is set to about 8.2% in USA it stands at 6.1% in South
Africa at 13.3% in India at 6.6% and in China at 6.4%. These numbers mean that companies in
that region of the world will be able to take out loans and invest or support their company. The
more companies have money, the more they will be willing to spend on advertisements, hence
doing through Google. However, company benefits from it and increases their overall income. In
the past few years, USA, UK, India, South Africa and China have all recorded an average
increase in inflation rate of 2.5-9.5% annually. This means that raw materials in these countries
are becoming more expensive every year and this causes the companies to increase the prices of
their products and getting more cash out of it.

Globalization is the closer incorporation of countries and peoples of the world which has been
brought about by the enormous reductions of costs of transport and communications and the
breaking down of artificial barriers to the flow of goods, services, capital, knowledge and to a
lesser extent, people across borders (Joseph Stiglitz, former chief economist at the World Bank)

The impact of globalization on International business alludes to an extensive variety of business

exercises attempted crosswise over national fringes. Alongside quickly expanding globalization,
worldwide business has turned into a mainstream point and has drawn the consideration of
business officials, government authorities and academics. International business is not quite the
same as local business. At the international level, the globalization of the world economy and the
contrasts between countries present both opportunity and difficulties to global organizations.
Business managers need to take note of the globalized business environment when settling on
international vital decisions and in overseeing ongoing global operations.

Many economists believe globalization may be the explanation for key trends in the world
economy such as: Lower wages for labourers, and higher profits, in Western economies, The
surge of migrants to urban areas in poor countries Low inflation and low interest rates in spite of
strong development. Globalization has accelerated in the last 20 years. During a period of
relatively strong economic growth, world exports as a share of GDP increased from under 20%
in 1994 to over 32% in 2008, and whilst global trade fell back in 2009, as a result of the global
slowdown, but bounced back in 2010. Increasing foreign investment can be used as one measure
of growing economic globalization.

As the internet builds its grip on foreign business sectors, it was a natural progression for a very
successful company to be born from the internet to extend its operations into these fledgling
nations. While the use of internet in foreign markets, like Japan, Europe, and China for example,
are simply starting to take shape, the quantity of new internet users in these business sectors is
growing at a much more noteworthy rate than in the United States..

Google, which generates almost all of its revenue from advertising sales, have centred their
attentions to these markets with boundless potential. Google officials anticipates as its vicinity in
outside countries expands so will the development of the company and eventually the bottom
line. A portion of the most recent information on Google's financial status is that it gets
somewhat under 66% of all income domestically. This information is slated to change drastically
as overseas operations develop. One of the variables that have permitted Google to experience
such fruitful development is that the prevalence of the brand was scattered through verbal instead
of costly advertising dollars. With the populations in foreign business sectors much bigger than
in the Unites States it would seem that an equation for success. Then again, what has been an
equation for achievement in the United States does not generally mean success in other parts of
the world. Part of Google's plan to aid internet clients in discovering inconceivable measures of
information quickly was to digitize library accumulations from the best libraries in the U.S.

Ultimately, Google I believe, has ventured into another region by expanding itself into remote
markets. Likewise with all explorations there will be growing agonies. Google is determined to
be victorious, as confirm by its development and its eagerness to expand. It did hit a few humps
along the way, yet they comprehend them and have balanced as needs be and successfully.
I believe to be successful in foreign markets a company must utilize the tools it was founded on
that allowed them to grow into globalization. A company must be forward thinking, and open
minded. The company must be aware of cultural differences and be sensitive to them, and be
able to adapt to different environments. We must understand that a business model that worked
in one country might not work in the next country. It will be important to have proper personnel
in place from each foreign market that see the vision and mission of our U.S Company, but can
also translate the mission for everyone else to understand (Vise David A.2005)

References

UK Essays. November 2013. Environmental Factors Which Influence Marketing Decisions

Marketing Essay. [Online]. Available from:
http://www.ukessays.com/essays/marketing/environmental-factors-which-influence-marketing-
decisions-marketing-essay.php?cref=1 [Accessed 12 May 2015].

Google Globalization Case."[Online] Available from:

http://www.123helpme.com/google-globalization-case-view.asp?id=165326/ =1 [Accessed 12
May 2015].