UNIT 1 THE NATURE OF THE BUSINESS ENVIRONMENT

ASSIGNMENT
1) What do you understand by the term business environment?
Ans: The business environment is a set of forces and conditions outside the organization’s
boundaries that can affect how the organization operates. These forces and conditions
change from time to time. The business environment presents opportunities that
organizations can take advantage of and threats that the organization should avoid.
In relation, business environment may reflect to terms such as:
Market share- this study talks about the existing player on the market. As a business
developer or a member of top management, we should understand these factors so that we
know when to innovate or to improve our business model, style or products as the demand
needs.
Business cycle: just like any phenomena that is existing, business environment is also a cycle
just like a product it has development and maturity stage. Hence we should dig deep our
understanding to cycle for us to rebrand our business that suitable to current business
environment.

2) Discuss the internal and external factors of the business environment.

Ans: Internal factors, this talks about legal, technicalities and in SWOt anyalysis these
can be reflected to strength and weakness. These are the backbones of the environment.
If we are well versed we can convert weakness into strength.

External- this talks about the façade of the business environment. In SWOT this may be
the threats and the opportunities. With these you can convert threats into opportunities.

Both plays a vital role in the business. It should be balance so that both factors will
harden and represent the business environment well.
UNIT 2 THE TASK ENVIRONMENT

ASSIGNMENT

1) The task environment is an important dimension of the business environment, discuss

Ans: The task environment- this are the aspect of the external environment and is also
known as operational environment, these are suppliers, middle man, clients, and
players/competitors. These affect an organization’s capability to retain inputs and
eliminate of its output.
The task environment also separates the owners, investors and employees or even
customers. Because all have distinguished task to perform.

UNIT 3 ENVIRONMENTAL ANALYSIS

ASSIGNMENT

1. What is environmental scanning? Discuss the usefulness of SWOT analysis in

environmental scanning.
Ans:
Environmental scanning- it is comparable to water testing in the fields of business.
Example, not all business is applicable to all areas/places. In different scenarios like
political, religion and location environmental scanning should take place. In the event
that a certain business is not allowed to operate. Hence, it is the task of a business owner
or management to think of alternative strategy or another product venture. SWOT
analysis, is also important tool to scan the business environment. After conducting
SWOT, deveopers can now decide if the business will commence or not. Also, with the
opportunities factor, a lucrative business/product might arise along the way.

UNIT 4 POLITICAL ENVIRONMENT

ASSIGNMENT
How does the political system influence Business organizations?
Ans: Based on the module, political checks and balances emanate primarily from three
primary sources:
 • the separation of powers - particularly the notion that the three arms of government
are in separate hands and that decisions require the concurrence of all branches of
government;
• a bicameral legislature - with legislation having to be accepted by both houses and subject to
scrutiny and amendment by opposition parties;
• the territorial division of powers - whether under a federal arrangement or through the
devolution of power to regional bodies and local authorities. Supranationalism is a further
development.
The above mentioned might influence the decision, application and commencement of any
business.
UNIT 5 LEGAL ENVIRONMENT
ASSIGNMENT
1) How can a company take advantage of the laws of the country in which it operates?
Ans:
As wise businessman, we can always take advantage on the different law that is existing on a
certain country. Mostly, it falls on taxes discounts etc. below listed are common laws that
can be taken advantage:
Freeport Zones- in countries like Philippines, doing business on a Freeport zones, exempts
investors to pay huge amount of tax, or no tax at all. Both has a win-win situation,
government can invite more investors than can create more and more job opportunities.
While the business owner can enjoy less expenses.

Early payments of tax dues: with this law, a company can avail certain discounts and
amnesty if they will pay on time. Especially if you are a huge company taxes might fall into
7-8 digits. With this, a discount is also a huge help to lessen the tax to be paid. This is also a
way of a government to encourage more and more business owner to pay their tax on time.
Ownership- most of the country are still protecting its local citizen to be protected in terms
of ownersip of the business. Example, in the Philippines, 30% is the maximum percentage
that a foreign investor can own. So that majority ownership are still for Filipinoes. In
Singapore, no foreign investors can own a service business like restaurants, salon, and
amusement. In some countries, no one can do business that talks about primary energy such
as: electricity, telecom and petroleum. These business are only exlusive for government
owned and controlled.
Unit 6 THE ECONOMIC ENVIRONMENT
ASSIGNMENT
1) Explain fully how the economic environment influences the business organization.

Ans: economic environment influences the business organization is important peripheral

influences on businesses. Variations in the level of economic activity create business cycles that
affect businesses and individuals in different ways. If an economy is arising, for instance,
unemployment rates are low, and income levels rise. Inflation and interest rates are other areas
that change according to economic activity. Through the policies it sets, such as taxes and
interest rate levels, a government attempts to stimulate or curtail the level of economic activity.
In addition, the forces of supply and demand determine how prices and quantities of goods and
services behave in a free market.

UNIT 7 THE TECHNOLOGICAL FORCES

1) Discuss the role of technology in modern business management.
2) Explain the meaning of technology
3) Identify the technological development which influences the business environment.
4) Justify the limits of technological changes in the business environment

Ans 1: in an improved modern business set up. Technology has important effects on business
operations. No matter the size of your enterprise, technology has both tangible and intangible
benefits that will help you make money and produce the results your customers demand.
Technological infrastructure affects the culture, efficiency and relationships of a business. It
also affects the security of confidential information and trade advantages. First and foremost,
technology affects a firm’s ability to communicate with customers. In today’s busy business
environment, it is necessary for employees to interact with clients quickly and clearly. Websites
allow customers to find answers to their questions after hours. Fast shipment options allow
businesses to move products over a large geographic area. When customers use technology to
interact with a business, the business benefits because better communication creates a stronger
public image.
Ans. 2 Technology  ("science of craft", from Greek τέχνη, techne, "art, skill, cunning of hand";
and  -λογία, -logia[2]) is the sum of any techniques, skills,  methods, and processes used in the
production of  goods or  services or in the accomplishment of objectives, such as scientific
investigation. Technology can be the knowledge of techniques, processes, and the like, or it can
be embedded in machines to allow for operation without detailed knowledge of their
workings.  Systems (e.g. machines) applying technology by taking an input, changing it
according to the system's use, and then producing an outcome are referred to as technology
systems or technological systems.

Ans 3; PESTEL is a good example of, PESTLE analysis can be an extremely effective tool in
business, if used correctly. It falls under the category of ‘environmental analysis’, which is to
say that it revolves around identifying the various external variables that affect a business’s
performance. Specifically, these are the Political, Economic, Social (sometimes socio-cultural),
Technological, Legal, and Environmental ones, hence the acronym ‘PESTLE’.

One of the handy things about PESTLE analysis in particular (as opposed to other business
management/analysis tools) is that it is very easy to conduct, as long as you are familiar with the
six categories. That’s why we are writing this set of articles about each of the categories, from P
to E. We’ll be providing definitions, in-depth explanations, and relatable examples.

Ans 4: One look around you in a modern home and you'll see how incredibly reliant we are on
technology. It's a safe bet that almost everything you can see around you right now is
technology. When we live our lives engrossed in it, it's easy to think that it can do anything. But
there are limits to technology. In this lesson we're going to talk about some of those limits.
Three main types are natural limits, economic limits, and ethical limits. A limit can also be hard
or soft. It could be that a limit really does describe something that is impossible to break (a hard
limit), but sometimes limits are soft limits—they're limits based on the way human society runs
and thinks, and they might not be limits in other circumstances.

UNIT 8 THE DEMOGRAPHICAL FORCES

1) Why do you think that the demographic composition of a population is essential to an

organization?

Ans. Demographic change can impact a country's society and economic structure. It can
result in increased (or reduced) demands on various organizations, particularly those in the
public sector. For example, the growing imbalance being experienced in many countries
between an increasing and dependent elderly population and a diminishing population of
working age touches on many areas of public policy, from healthcare and social provision
on the one hand to pensions and fiscal policy on the other.
2) Discuss the implications of demographic changes in the business operation.

Ans: A critical factor is demographics. Demographic change can influence the

underlying growth rate of the economy, structural productivity growth, living standards,
savings rates, consumption, and investment; it can influence the long-run unemployment
rate and equilibrium interest rate, housing market trends, and the demand for financial
assets. Moreover, differences in demographic trends across countries can be expected to
influence current account balances and exchange rates. So to understand the global
economy, it helps to understand changing demographics and the challenges they pose for
monetary and fiscal policymakers.

3) Identify and discuss the various factors affecting the demography.

Ans: A country's population typically increases over time and will vary according to
changes in birth and death rates and net migration rates. The age and sex distribution of
the population. In addition to examining the overall size of a country's population.

The age and sex distribution of the population: In addition to examining the overall size
of a country's population, demographers are also interested in its structural
characteristics, including the balance between males and females and the numbers of
people in different age categories.

Other structural characteristics. Populations can also be examined in several other

ways, including their ethnicity and geographical distribution.

Population change. As the previous analysis indicates, populations can change in either
size or structure, with significant consequences for economic activity within and between
countries. The size and structure of a country's population depend on several variables,
the most important of which are the birth rate, the death rate, and the net migration rate.

The birth rate. Birth rates tend to be expressed as the number of live births per thousand
of the population in a given year

4) Illustrate the implications of social demography

Ans: emographic change will result in a slower-growing and older population. This
transition will likely put downward pressure on the growth rate of potential output, the
natural rate of unemployment, and the long-term equilibrium interest rate. The magnitude of
these effects and the timing are uncertain because they depend on complicated dynamics and
the behavior of consumers and businesses. Demographic change may also affect the business
cycle and the monetary policy transmission mechanism. Monetary policymakers will need to
continually evaluate these structural and cyclical effects in determining appropriate policy.
 Demographic trends present challenges for fiscal policymakers as well. Rising fiscal
imbalances are projected to lead to higher government debt-to-GDP levels, potentially
putting upward pressure on interest rates, and crowding out productive investment. But steps
can be taken to offset some of the negative consequences of demographic change for the
economy. These include policies that focus on increasing productivity and labor force
growth and that address growing fiscal imbalances.

UNIT 9 THE CULTURAL ENVIRONMENT

1) Discuss Hofstede's cross-cultural analysis and its usefulness in the management of

international organizations.

Ans: Hofstede’s Cultural Framework-As the business world becomes more global, employees
will likely face someone from another country at some point in their careers, companies will
negotiate with companies from other countries, and even employees of domestic companies
will likely encounter someone from another country.

Furthermore, trends suggest that immigration, the movement of people from their home
country to other countries, will continue to grow worldwide, a process that will contribute to
making companies’ workforces increasingly diverse. Additionally, many multinational
companies rely on expatriates to run their local operations. An expatriate is foreign
employee who moves to and works in another country for an extended period of time. All of
these trends mean that during your career you are likely to encounter someone from a
different culture and that the potential for cross-cultural tensions is high. It is therefore
important for any international management student to understand culture to better prepare
for dealing with such tensions.
 2) Justify the importance of culture in the business environment.

Ans: Building a strong organizational culture will help recruiters entice elite candidates
and retain top talent. Not only that, but a winning corporate culture has been shown to
improve levels of employee engagement, productivity and performance. Organizational
culture  is defined as the values, ideals, attitudes and goals that characterize an
organization. Your company’s culture consists of the important intangibles that dictate
how your team operates and does business. In a lot of ways, your organizational culture
becomes part of your organization’s identity. No two organizational cultures will be the
same because every organization has unique goals and is made up of diverse individuals.
A big part of  creating a positive work culture is making sure every employee is
represented and accounted for. Your organizational culture should unify your employees
and propel them toward a shared goal.

3) Illustrate the application of culture in market segmentation

Ans: Sometimes the most effective marketing strategy is to target only those people who
are likely to invest in your product or service. This is called marketing segmentation.
For example, a retail clothing store might target customers who have a particular
sense of fashion. In contrast, marketing its clothes to people who would never wear
them is a waste of advertising dollars. The downside of this approach is you must
understand the specific demographic, or culture group, you plan to target. For
example, the retail clothing store must stay abreast of fashion trends within the cultural
group it wishes to attract, or it risks irrelevance.

UNIT 10 THE NATURE OF INTERNATIONAL BUSINESS

1) What do you understand by the word international business and the alternative
operational strategies available to a company wishing to go international?

Ans: for me, it’s a luctrative movement of a company to exposed themselves into
international market. It s only limitited to company benefit in terms of sales but also
introducing what does a local player can do in the international market as it may also
open another gateway of more opportunity.
2) Explain the meaning of international business.

Ans: International business  refers to the trade of  goods, services, technology, capital and/or
knowledge across national borders and at a global or transnational scale.
It involves cross-border transactions of goods and services between two or more countries.
Transactions of economic resources include capital, skills, and people for the purpose of the
international production of physical goods and services such as finance, banking, insurance,
and construction. International business is also known as globalization.
To conduct business overseas, multinational companies need to bridge separate
national  markets into one global marketplace. There are two macro-scale factors that
underline the trend of greater globalization. The first consists of eliminating barriers to
make cross-border trade easier (e.g. free flow of goods and services, and capital, referred to
as "free trade"). The second is technological change, particularly developments in
communication,  information processing, and  transportation  technologies.

3) Illustrate the stages of global organizations.

Ans:

Stage 1: Domestic-market establishment The domestic market is often an appropriate

place to test products and fine-tune performance before tackling the complexities of
international trade. It can also give a good indication of performance. However, in some
instances, this stage of the export process doesn’t serve any purpose at all. This may be
the case for a Canadian software company, for example, that has developed a product
specifically for a foreign market. Because international-market development requires
resources of time and money on the part of the exporter, it’s important to ensure that a
strong foundation has been built in the domestic market upon which to base future
export-market-expansion activities, so that international activities do not compromise the
company’s core business.

Stage 2: Export research and planning When companies begin trading abroad, they often
target a country similar to their own in language, financial structures, legal and
economic systems or culture. For example, Canadians entering the international
marketplace usually address the U.S. market first.
Stage 3: Initial export sales When implementing an export plan, it’s advisable to begin
modestly by testing the market. A graduated strategy enables the novice exporter to
acquire practical experience in a market without incurring unnecessary or
unmanageable risk.
 Stage 4: Expansion of international sales If initial sales have been good, planning for
larger orders and expanded activity should follow. This stage is usually accompanied by
intensified market research, more aggressive participation in international trade shows
and other marketing activities and greater emphasis on strengthening networks and
contacts in the target market.

Stage 5: Investment abroad If sales are brisk, profits encouraging and opportunities
promising, the company may choose to expand its presence in the target market. It can,
for example, open a local office, tighten relations with local partners, buy an existing
local company, form a joint venture or invest in R&D or production facilities.

4) Justify the impacts of the structure of the global economy

Ans: The contention that “inclusive” institutions are the deep determinants of economic
growth remains unsatisfactory. This paper develops an alternative theoretical and
empirical case that economic structures are the fundamental cause of economic
performance. Economic structures determine the rate of structural learning, affect
institutional performance, influence the distribution of income and establish the direction
of political transitions, thereby, economic performance. The paper highlights the
feedback loops among institutions, political power and economic structures, thus,
markets on their own will not ensure growth-enhancing transformations. The workings of
this framework are illustrated using a USA case study, and it exposes the structural
origins of the financial crisis.

UNIT 11 ENVIRONMENTAL CHALLENGES OF INTERNATIONAL BUSINESS

ASSIGNMENT

1) Explain the international economic environment

Ans: The  international economic environment can be described as the global factors
that are outside of the control of individual organizations but that can affect the way that
businesses operate. These factors include unemployment rates, inflation rates, and labor
costs. External factors found in the macroeconomic environment can also affect
organizations' decision-making and performance activities. They include cultural and
social influences, legal issues, demographics, and political considerations, as well as
changes in the natural environment and technology.
 2) Illustrate the international political/legal environment

Ans: The legal/political aspect is very important in global marketing. "International law"
can be defined as rules and principles that states and nations consider binding upon
themselves. This raises two interesting characteristics of international law. The first is
that "law" belongs to individual nations and international law only exists to the degree
that individual nations are willing to relinquish their rights. The second is the lack of an
adequate international judicial and administrative framework or a body of law which
would form the basis of a truly comprehensive international legal system.

The international business is also subject to political decrees made by governments both
in "home" and "host" countries. Home governments can apply pressure not to deal with
disapproved parties. These measures may take the refusal to grant an export licence, or
withdrawal of export guarantee cover. The host government may take measures like
taxation, ownership controls, operating restrictions or expropriation.

4) Conduct analysis of the International cultural environment.

Ans: The international cultural environment has both positive and negative effect.
example, the creation of Europena Union helps least competitive economy on their
region. Since all of the said member change their currency in EU. All became a
beneficial. On the other hand, in south east asia, cultural environment only applicable to
Chinese. That is why its quite vhard to uplift the economy in our region.

4) Discuss three environmental factors that affect the operations of an international business
organization
Ans:
1. Natural Resources. Natural Resources are another aspect of the economic environment.
A broad range of resources is available in different countries, which helps to promote
economic activities. Some countries have a lot of natural resources while others do not.
The United States has a lot of natural resources such as crude oil, natural gas, coal, iron
ore, copper, uranium, and other metals and materials that are important to the economic
development of a modern economy. Japan, on the other hand very few resources on their
own and have to depend on the importation of most of the resources needed for industrial
activities. One of the vital natural resources in the modern global economy is crude oil.
Nigeria produces crude oil along with other nations like Saudi Arabia, Iraq, Iran, and
 Kuwait. Some of these countries have attracted many international businesses into their
country because of this essential natural resource.
2. Infrastructure. Infrastructure is also an essential aspect of the economic environment
that is of relevance to international business management. The infrastructure consists of
physical things such as roads, railways, schools, hospitals, communication systems,
electricity, airports, etc. While some countries have highly developed infrastructures,
others lack them. Countries like United States, Japan, Britain, Canada, France, Sweden,
Denmark, and Germany, to mention just a few, have highly developed infrastructures
that have affected the development of international businesses in these areas. Others like
Nigeria, Sudan, Kenya, Peru, Chile, and Pakistan, to mention just a few, have poorly
developed infrastructure that discouraged international business. The poor electricity
supply discouraged many international organizations from investing in the country. In
some cases, interested companies may have to build infrastructure such as houses,
schools, hospitals, and others to attract an international workforce.
3. Incentives for International Trade – Another facet of the political environment is
incentives to attract foreign business. For example, the state of Alabama offered
Mercedes-Benz substantial tax breaks and other incentives to entice the German firm to
select a location in that state for a new factory. In like fashion, as noted earlier, the
French government sold land to The Walt Disney Company far below its market value
and agreed to build a connecting freeway in exchange for its agreement to build its
European theme outside Paris. Such incentives can take a variety of forms. Some of the
most common include reduced interest rates on loans, construction subsidies, and tax
incentives. Less developed countries tend to offer different packages of incentives and the
raw materials and equipment, market protection through limitations on other importers,
and the right to take profits out of the country. They may also have to correct deficiencies
in their infrastructures. As noted above, to satisfy the requirements of foreign firms.
UNIT 12 GLOBAL COMPARATIVE MANAGEMENT

ASSIGNMENT
1) What factors do you think account for the different management adopted by the various
countries around the world?
Ans: For me it’s the lifetime employment. Essential features of Japanese management are
lifelong employment for permanent employees (related to the managerial function of staffing),
great concern for the individual employee, and emphasis on seniority. Typically, employees
spend their working life with a single enterprise, giving employees security and a feeling of
belonging. This practice brings the culturally-induced concept of wa (harmony) to the
enterprise, resulting in employee loyalty and close identification with the company's aims.

2) Compare and contrast the Japanese and British management styles.

Ans: Japanese Management and Theory Z.because it is one of the leading industrial nations
globally, Japan has adopted managerial practices that are quite different from those of
other economically advanced countries in the Western world. The discussion here deals with
two standard Japanese practices: lifetime employment and consensus decision-making. Then
it compares and contrasts Japanese, and U.S. managerial practices, including Theory Z. In
closing sections of parts 2 to 6 of this book, other managerial practices in Japan are
discussed and compared with those in the United States and China.

European managers operate between the extremes of short-term profit orientation (of
American managers, as perceived by European managers) and the long-term growth
orientation of Japanese managers. On the other hand, European managers have adopted
many managerial techniques from the Americans; they also could learn from American
entrepreneurship. With the free flow of information and MNCs operating in many countries,
there may be some convergence of managerial approaches in the global environment.

UNIT 13 MANAGEMENT CHALLENGES IN A GLOBAL ENVIRONMENT

1) Discuss management functions in an international environment.

Ans: international manager must have a broad understanding of both environmental and
competitive issues applicable to its organization. To plan successfully, the international
 manager needs to understand both the local and international market conditions that will
affect its operations. Managers, while planning in an international environment, need a
great deal of information to function effectively. They need to understand what markets are
growing or shrinking, what the local and foreign competitors are doing in each market.
Critical issues to contend with while planning includes understanding
environmental circumstances, the role of goals and planning in a global organization, and how
decision-making affects the global organization.