商业环境Chapter_5D_Global Economy.pptVIP

Factors Key factors influencing global business strategy can be summarised under the PEST heading: Political Economic Social Technological Political Political Change – regime change through coup, violence, etc. Change in government through democratic election can influence future business strategy. e.g. the opportunities that are now available in Russia and Eastern Europe following the collapse of communism Political Uncertainty – in countries like Zimbabwe, Sudan, Venezuela. Political uncertainty can lead to a fall in investment by businesses and influence decisions on expansion and business ventures War/Terrorism – create uncertainty Political Doctrine – can affect the ease with which business is conducted Economic All these factors need to be considered in any global business venture: Investment Considerations and Allowances Sophistication of Financial Markets – ease with which capital can be moved and raised Commodity Prices – oil, energy, metals Monetary and Fiscal Policies – interest rates and tax regimes Inflation rates Change in comsumer’s income Internal Regulation and Bureaucracy – can be stifling! Exchange Rates Energy Costs Rising oil prices affect many businesses worldwide Change the nature of demand (e.g. off-road vehicles) Potential to generate inflationary pressures Possibility of triggering global economic slowdown High Oil Prices Economic Trade Protectionism – for example, the US tariff on steel Regulation – impacts on trade patterns Trade Blocs influence the ease of access to new markets and affect the relative costs of trading in different regions of the world: EU NAFTA Locating within a trading bloc could help to reduce long term trading costs (e.g. Japanese companies building plants in the UK to help overcome exposure to the Common External Tariff) Social Religious Considerations – appropriateness of some business ventures – e.g. selling condoms in staunchly Catholic countries Impact on local communities of business development – availabili