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Major Elements in Global Environments

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Major Elements in Global Environments

Individual Project
March 21, 2019

Major Elements in Global Environments

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Major Elements in Global Environments
PART 1
Introduction

Assimilating all concepts from provided information, you should write a detailed evaluation outlining
the major issues to consider when evaluating different regulations that could impact the operational
performance of an organization in an underdeveloped country. Businesses and organizations operate in a
complex environment impacted by a wide array of forces and factors. These factors could be legal, political,
cultural or economic. These regulations have a rippling effect and cuts across many sectors. Businesses and
other organizations must continually review and put measures to cope with these factors in order to avoid
being extinguished by an unfavorable shift in external environmental conditions. For a successful evaluation
to happen, several factors must be taken into consideration (Mangan & Lalwani C.L, 2016).
Supply and Value Chain
First, the organization must evaluate the value chain for the target market. This is majorly for the
development of a competitive strategy and the market analysis. The major activities involved in the business
are the logistics, sales and market, administration, production, manufacturing and the services involved
among other day-to-day operations. There must be adequate infrastructure to support the logistics and
operations of the business (Hugos, 2018). Support functions are also vital to the success of the company in
ensuring the seamless flow of activities and products along the value chain. All these must function and
complement each other (Mangan & Lalwani C.L, 2016)
Distribution Channels and Networks
The other major issue to consider is the availability and appropriateness of the distribution networks.
These channels ensure that the flow of products and services from the business to the market is efficient and
timely. The organization must establish a working channel to ensure there is no outage of products and
services or oversupply. This comes with cost implication. It must be clear on the best model to use, whether
direct marketing or use of wholesalers and retailers. Internet marketing and online sales offer a global
frontier for businesses to present their products to customers worldwide. Innovation and creativity is key to a
successful business.

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Major Elements in Global Environments

Technology and Consumer Behaviour
The organization must consider evaluating the environments including the level of technology and
uncertainty of the environment. Any business environment has a level of uncertainty which dictates how
businesses will operate and the level of risks involved. Changing customer needs must be monitored
continuously to ensure that the business remains viable and relevant. This requires the use of competitive
advantage strategies and modern technology in order to be efficient (Mangan & Lalwani C.L, 2016).
Major issues to consider when evaluating the differences in the legal, political, cultural, and economic issues
that could impact the logistics processes and ultimately the overall operational performance of the
organization.
PART II
There are various issues to consider when evaluating the factors which could influence the
performance of an organization. To start with the business environment is governed by legal requirements.
The legal requirements include organizational law which requires the organization to exist as a legal entity
with clear ownership. Contractual laws also govern how organizations can operate. Regulations on securities
and financing spell out how to obtain financing among other things. Stricter laws will make the financing
inaccessible therefore hindering the success of the organizations (Beck & Levine, 2003). Other important
regulations touch on consumer protection issues like product weight, trade description, quality and sale of
goods. Labour and employee protection laws are also important and must be evaluated based on factors like
working conditions, safety standards, safety, hygiene, pay and working hours.
Brand Protection
Another important factor to consider is the protection of a company’s brand. Many global brands face
a challenge of protecting business brands and models due to lack of adequate copyright protection legislation
in the underdeveloped countries. Local companies adopt business models and ideas of global brands. As a
result, market competitiveness dwindles, and brand value is significantly reduced (Christopher, Mena, Khan,

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Major Elements in Global Environments

& Yurt, 2016). The business must ensure that its brand is intact as this will give it a competitive edge over its
competitors. Competitive advantage has its own advantages like customer loyalty and pricing privileges.
Environmental Laws
Environmental laws and treaties have taken prominence in the 20th and 21st centuries. Many
countries have adopted international treaties on environmental conservation. These laws govern various
issues like carbon emission levels and other conservation measures. Organizations must ensure that they are
within acceptable standards and do not offer products that degrade the environment. Although in
underdeveloped...