Significant Characteristics that Shape the Business Environment

Significant Characteristics that Shape the Business Environment

Introduction

The paper attempts to discuss the most significant characteristics of selected regions that shape a business environment. The selected areas of focus are 'Culture and Language' and 'Economics'. The areas of focus are discusses in relation with their importance and influence on establishing business operations or starting a new enterprise.

Discussion

The success or failure in a particular business depends on the conditions surrounding it, the context in which it moves can help or hinder. The environment refers to factors outside the company (Schaltegger, Burritt & Petersen, 2003, pp 271 - 180). A single aspect can affect more firms in a sector to another or companies of a certain size or geographic location. They tend to differentiate certain components of the overall environment. The analysis is to determine as influenced by external factors: economic, political and social in the internal situation of the company, and as projected in the same industrial environment (Pride, Hughes & Kapoor, 2011, pp 567 - 578).

Legal political environment

The action of the government affect the competitive conditions of the company through the regulation of sectors, certain measures to promote innovation-related conditions, internationalization and many facets of business practice. These regulations and activities form the legal political environment (Kopp, 2003, pp 232 - 241).

Economic environment

The conditions of the economic condition their current and future performance of firms and vice versa. Economic growth is the rate at which increases the production of goods and services of a particular country. This growth eases the competitive pressure, as companies do not necessarily have to fight each other to maintain and increase their activity (Pride, Hughes & Kapoor, 2011, pp 567 - 578).

Socio-cultural environment

Firms do within society, with all its features and processes of change. The culture of society including individualism, group, or corporate communication also affects the possibilities of doing business. Similarly the social aspect also influences business operations as the social and cultural significance is immense (Kopp, 2003, pp 232 - 241).

Technological environment

One of the more dimensions are evolving over the last decades is the technology. The accelerated development and constantly modify the conditions under which the company competes. Technology opens new possibilities for the company and also creates danger for those who can not adapt (Kopp, 2003, pp 232 - 241).

Analysis of Environment

China

In the realm of international commerce, before a given corporation begins to conduct business overseas, it must first get acquainted with the cultural values of the region (or regions) it will dwell in. This is particularly important when Western companies eye Asian cultures that have traditionally embraced core values different from their own. This is certainly the case in China, where two eras of culture form the views and practices of over one billion people.

Language and Culture

When engaging in new business ventures in China, it is important to research the area, the culture, its traditions and practices as to not offend the Chinese people. Undergoing conversations for business purposes can ...