Scribd Logo
Upload

Welcome to Scribd!

  • 25 views

    Culture and Its Effect On Business:: Key Elements in Showing How Business Activities Will Be Conducted". Discuss

    Uploaded by

    richard jarabe
    Businesses do not operate in a vacuum and are influenced by the cultures and societies around them. As cultures change, businesses must adapt to stay relevant to consumers. Culture was a key factor in McDonald's initial struggles in India, as it failed to understand local cultural preferences. Political, legal, socio-cultural, economic, and technological environments all impact international business and must be analyzed both at startup and continually as conditions evolve over time. Understanding differences in factors like economic systems, exchange rates, and technologies across countries is vital for international business success.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Culture and Its Effect On Business:: Key Elements in Showing How Business Activities Will Be Conducted". Discuss

    Uploaded by

    richard jarabe
    25 views2 pages
    Businesses do not operate in a vacuum and are influenced by the cultures and societies around them. As cultures change, businesses must adapt to stay relevant to consumers. Culture was a key factor in McDonald's initial struggles in India, as it failed to understand local cultural preferences. Political, legal, socio-cultural, economic, and technological environments all impact international business and must be analyzed both at startup and continually as conditions evolve over time. Understanding differences in factors like economic systems, exchange rates, and technologies across countries is vital for international business success.

    Original Title

    prelim activity 4

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Businesses do not operate in a vacuum and are influenced by the cultures and societies around them. As cultures change, businesses must adapt to stay relevant to consumers. Culture was a key factor in McDonald's initial struggles in India, as it failed to understand local cultural preferences. Political, legal, socio-cultural, economic, and technological environments all impact international business and must be analyzed both at startup and continually as conditions evolve over time. Understanding differences in factors like economic systems, exchange rates, and technologies across countries is vital for international business success.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views2 pages

    Culture and Its Effect On Business:: Key Elements in Showing How Business Activities Will Be Conducted". Discuss

    Uploaded by

    richard jarabe
    Businesses do not operate in a vacuum and are influenced by the cultures and societies around them. As cultures change, businesses must adapt to stay relevant to consumers. Culture was a key factor in McDonald's initial struggles in India, as it failed to understand local cultural preferences. Political, legal, socio-cultural, economic, and technological environments all impact international business and must be analyzed both at startup and continually as conditions evolve over time. Understanding differences in factors like economic systems, exchange rates, and technologies across countries is vital for international business success.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    Instructions

    Directions: Read and answer the following questions. Post your answer here and corresponding points will be given.

    1. “Though society and culture do not appear to be a part of business situations, yet they are actually
    key elements in showing how business activities will be conducted”. Discuss.

    Culture and its effect on business :

    Businesses do not exist in a vacuum, and even the most successful business
    must be aware of changes in the cultures and societies in which it does business.
    As society and culture change, businesses must adapt to stay ahead of their
    competitors and stay relevant in the minds of their consumers.  Culture is an
    important part of International Business. Culture is defining the collection of
    values, beliefs, behaviors, customs and attitudes of the member in the society.

    2. Discuss the famous McDonald’s case where the multinational company failed to understand the
    culture of India and thus failed initially, before bouncing back.

    Answer : Mode of entry by McDonalds :

    1. The attractiveness of a country as a potential market for an


    international business depends on balancing the benefits, costs, and
    risks associated with doing business in that country. The long-run
    economic benefits of doing business in a country are a function of
    factors such as the sixe of the market, the present wealth of
    consumers in that market, and the likely future wealth of consumers,
    which depends upon economic growth rates.
    3. How relevant is the political environment in international business? Enumerate different
    types of political systems that exist around the globe.
    Businesses seeking global opportunities must consider other economic factors beyond a
    country’s political economy. For one thing, they will want to target the markets and
    countries where people have the highest incomes and the most disposable income.
    4. Describe the different types of economic systems. Explain with suitable examples.
    An economic system is a means by which societies or governments
    organize and distribute available resources, services, and goods across a
    geographic region or country. Economic systems regulate the factors of
    production, including land, capital, labor, and physical resources. An
    economic system encompasses many institutions, agencies,
    entities, decision-making processes, and patterns of consumption that
    comprise the economic structure of a given community.
    Clearly, exchange rate fluctuations can change the underlying fundamentals of a
    business investment or trade agreement. An unfavorable change in the exchange rate
    can increase the cost of resources, including labor, raw materials and intermediate
    goods, and the relative value of a finished product or completed service. Relatively
    stable exchange rates provide an economic environment that decreases the risk
    inherent in working across borders and political economic systems and gives businesses
    the confidence to make investment and expansion decisions and, therefore, to contribute
    to economic growth and prosperity.
    5.“The development of new technologies helped international business”. Do you agree?
    Justify your answer.
     
    2
    INTERNATIONAL BUSINESS ENVIRONMENT
     
    Before entering into international market, a company must analyze the international marketingenvironment very
    carefully because the future of the company depends on this analysis only.However, you must note that this analysis
    should not be done at the beginning but throughout thelife of the business as the international marketing
    environment changes really fast. A companyneeds to analyze the political, legal and regulatory, socio-cultural,
    economic, and technologicalenvironment in order to understand the international marketing environment

    You might also like