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INB 205 WK 1 DQ 2 with class answers




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Wk 1 DQ 1
Post your response to the following: Describe the driving business forces in both the
foreign and domestic environment. In what ways do they operate differently? Why?
Provide an example.
The driving business forces in both the foreign and domestic environment which
influences how an organization operates are controllable and uncontrollable forces.
Uncontrollable forces are those elements outside of the direct control of the business’s
management; such as political change, economic stability, or natural occurrences.
Controllable forces are those which can be directly controlled by a business; such as
employees of the business and the business’s ability to produce a product or service.
While businesses in both the foreign and domestic markets experience controllable and
uncontrollable forces, it is unlikely that a business in a domestic market will be overly
influenced by the uncontrollable forces in the foreign market. That is to say, a business in
the domestic market will not be affected by a strike in the foreign market at the same
degree the foreign market is affected.
The driving forces behind both foreign, and domestic business include political,
technological, market, cost, and competitive forces. Political forces drive the business
within government interest and relations, while technological drives business through
new ideas and plans that push new ideas to the future. The market is a crucial point in that
the economy is major factor in determining the amount of sales. Cost is another part that
can drive a business, with soaring inflation its hard to sale when prices are unmatched to
current products. The last force is competitive, in which the amount of competition can
drive a business forward, or drag the business down.
The driving forces for foreign and domestic environments include the level of value for a
force, the difficulty in assessing changes, and interrelated forces. An example of the level
of a force value often occurs through political embargos that result in a business not being
allowed to produce parts due to foreign ownership or foreign factories. The difficulty in
assessing changes usually occurs through legal or political changes that make it hard to
produce in other countries. Interrelated forces applies to the end result of mixing the
forces. This could be to much of one driver and not enough of another, which results in a
compromise between the two forces. The driving forces for the foreign environment are
referred to as all of the uncontrollable forces, which occur outside the home country of
the business and affect the overall operation of the business. An example of an
uncontrollable force in a foreign environment would be a foreign government placing
restrictions on the exporting of a particular part or resource. This restriction would affect
the local facility because the final product can not be produced without the part or
resource. The driving forces for the domestic environment are referred to as all of the
uncontrollable forces, which occur outside the country of the business and affect the
overall operation of the business. An example of an uncontrollable force in a domestic
environment would be the government of the home country placing an embargo on
products that are manufactured and the exported. The driving forces for the foreign and

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domestic environment affect the overall operation of the business. The driving forces for
both domestic and foreign environments are uncontrollable, but the main difference
between the two is the origin of the driving force.
The forces of international and domestic business are the same but how they affect a
business is different. Before going into a new market in a new country and business needs
to check a few things out. First they need to check out the competition in that area to see
if there area is oversaturated or not. Next they need to see if the countries government
and cultural will welcome them. These are the legal, political and sociocultural forces.
Some cultures will not buy from a foreign based company and some will if but only if
they hire local people to work in the business. Some governments expect back pays for
allowing companies to move into their country. A few other concerns are whether there is
an ability to distribute goods in the new country, whether the work force is skilled or
trainable, whether the country has technological that allows for your business to run.
Some countries do not have phone and power lines readily available. One other concern
is the economy of the country. When considering staying only domestic these are also
concerns the cost of labor, whether there is an oversaturated market, whether the financial
and economic state domestically. Domestically you understand the culture, the laws, the
technology and are prepared already. Internationally there are many forces that you have
to research and many things that are unexpected to make it a little harder to thrive.
Today business is done so much faster, and globally, that what it used to be normal
before, now is totally out dated. These changes in history brings new drives, political:
which is a progressive trade and foreign investment, and the privatization on nations who
were out of reach due to a communist regimen. Also the drive is technological, to be in
cable TV and the internet and reach as many customers as possible. Another drive is the
market, is not just national market, is the global market. These factors bring another
drive, cost: trying to keep the cost minimal and the production at the maximum of the
market need. The last but not least would be the competitiveness, being able to keep other
competitors immobile, unable to match the products or services we are providing.
A good example is EBay, where they have controlled the auction industry for years,
jumped into the globalization and they are a top competitor, difficult to match.
There is political that is for the preferential trading agreements. The technology that is
important for the communication with businesses around the world. Also there is the
market which operates the sales of different companies. Factors may include changes in
reimbursement, a shortage or excess of labor, changes in the political landscape, the
economy, and others.
There are various forces that contribute to potential troubles for businesses both in both
foreign and domestic environments. Competitive forces are threats from business rivals.
Distributive are distributors that handle the flow of materials needed to produce a
product, as well as services, the danger being that a break in that chain can have negative
effects. Economic forces such as unit labor cost and GNP can have variable effects on the
ability to proceed smoothly with business operations and revenue. Socioeconomic forces
can effect the environment via struggles concerning fair wages, as well as, access to
workers in certain areas where the population maybe rural instead of urban, thus limiting
the workforce required to successfully man a production center. Financial matters such as

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taxation and it variables can effect the ability to continue generating profit. Legal, the
manner in which governments regulate how businesses operate in their country is always
a concern. Political forces such as nationalism and forms of government can affect
business it the mood changes. Sociocultural influences and attitudes and beliefs can affect
business, for example, drinking and Islamic countries. The ways in which these forces
operate depends heavily on where the force is foreign or domestic, for example, in the
U.S., political forces and changes are not a substantial threat to business due to the fact
that the U.S. is a capitalistic society, as opposed to a socialist county that would have
more control over the distribution of wealth. Additionally, a force such as labor, would be
much easier to handle in a country that does not possess stringent labor laws, in contrast
to the well established labor laws of the U.S.
There is a huge difference in the business force in foreign and domestic. Here in the
United States, we are losing companies all the time to the foreign forces. Many
companies are choosing to move there company to overseas because of cheaper cost. The
wages are also much lower than here in America. The employees are willing to work
longer. Where I work we buy aluminum all the time. This rod that we are getting from
china is much cheaper, even though they have to ship the rod overseas. This rod is not at
the same quality that we get from our other company but since it is so cheap, we are
working with the China company to try and get it right. Once the China company get the
rod to our standers. The America company will loss our business. Since we order so much
from them, they will have to cut back. I think that several people will be laid off, once we
change to the new company.
In the domestic forces. Right now the companies are week because of the economy.
Several companies are closing down or at least laying off. There are also many
companies that are taking pay cuts. In the domestic forces, there is also more laws to keep
up with. Unions are also a factor that companies has to deal with. There are many laws
with each union that a company has to keep up with.
The driving business forces in both foreign and domestic are the same only one is in a
domestic environment and the other is in foreign nations. They are the uncontrollable
forces that influence the life and development of a firm. The difference between the two
would be the different force values, and an example would be Dresser Industries. There is
also the changes difficult to assess, for instance, Mexico's law which kept a foreigner
from owning the majority of a Mexican company had clause with exceptions if it were
going to contribute to the welfare of a nation.
I think the driving forces in both the foreign and domestic environment is money. Money
is what runs the world. Of course other factors influence decisions like politics, the stock
markets, and technological advances. Even without the underlining factors money is
what drives all business except charitable organizations. I think both foreign and
domestic environments operate in the same way. Businesses must figure out the costs
and the profits that can potentially be made in all ventures. A great example of this is
American businesses moving their factories across seas in order to save money on labor
costs. Most businesses could care less about supplying Americans with jobs when they
could potentially save millions or billions with moving overseas.
There are five major kinds of drivers, all based on change, that are leading international
firms to the globalization of

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Just what I was looking for! Super helpful.