Summary: The Global Business Environment

Introduction

The global business environment impacts on how factors outside of a nations home country impact on the decisions a business make around resource use (land/physical, human, capital and entrepreneurial resources). These factors are both internal and external to a business. The global business environment is not static and evolves and adapts relative to these factors. Ultimately the global business environment impacts what strategies and tactics are used to achieve a business’s aims, goals and vision (Samson, Cately, Cathro, & Daft, 2012).

News 1: South Island freight lines expected to be out of action for months

Article: Malone, A. (2016, November 15). South Island freight lines expected to be out of action for months. Retrieved

This article highlights this in the context of suppliers (landlords) being able to attract customers (tenants) due to factors in the sociocultural environment. Robt. Jones Holdings are finding it challenging to attract some high value tenants due to the presence of homeless people, will detracts from the usefulness and value of these properties. This is as the retailers, who would be tenants, believe that firstly they will struggle to attract customers as people do not want to go to shops where homeless people are, and secondly, it will detract from the brand image and reputation of these firms.

The article also highlights calls for local or central government intervention to address the issues, hence elements of the political/legal environment too. This lobbying is political action to attempt a change in policy that will positively impact business. Conversely there is comment that business should be socially responsible and contribute to solving the issue. Consequently, Silver Fern Farms would need to understand which products would be best suited to these markets, and ensure all of their resources are most effectively used to appeal to the different norms and values of the

(2016, November 15). Alexandra-based space science technology centre gets go-ahead. Retrieved from Stuff.co.nz: http://www.stuff.co.nz/business/86465019/alexandrabased-space-science-technology-centre-gets-gohead

The government has allocated money toward funding regional centres of excellence. This is an example of political influence and means impacting on business decision. Bodeker Scientific have pursued the development of a Centre of Space Science Technology (CSST) in Alexandra, as a consequence of the government funding that was made available to them. Bodekere Scientific made the decision to partner (perhaps a joint venture) with 8 other organisations to develop a business case to create this centre. This is a clear example of governments being able to influence business decisions.

This decision is also supported by the ability for the work being completed by the research centre will be internationally relevant. The CSST will be able to carry out deliberate work to tap into international markets and introduce some of their work into other countries. The partnership/joint venture will need to ensure they carry out the necessary planning and organising to allow this to happen in a deliberate manner, that adds value to their existing operations. Techniques such as the Boston matrix, or Porter’s five-forces would be required and used in a global