International Business – An Overview
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International Business – An Overview


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A business decision making is based on the internal and external environmental factors.
The internal environmental factors are :
Value system,
mission and objectives,
management structure and nature,
internal power relationship,
human resources,
company image and brand equity and
other factors such as physical assets and
facilities, R&D and Technological capabilities,
marketing resources and financial factors.
External environmental factors are broadly classified as two. 1) Micro Environmental factors 2) Macro Environmental factors
Micro Environmental factors are: suppliers, customers, competitors, marketing intermediaries and public
Macro Environmental factors are: economic environment, political and regulatory environment, social/cultural environment, demographic environment, technological environment and natural environment.

Characteristics of the Global Enterprise

DRAWS RESOURCES FROM A GLOBAL POOL
capital, labor, materials
VIEWS THE WORLD AS ITS HOME
ESTABLISHES A WORLDWIDE PRESENCE IN ONE OR MORE BUSINESSES
but may go global by chance or design
PURSUES A GLOBAL BUSINESS STRATEGY
TRANSCENDS EXTERNAL AND INTERNAL BOUNDARIES

Uses of Globalization

Trade and investment barriers are disappearing.
Perceived distances are shrinking due to advances in transportation and telecommunications.
Material culture is beginning to look similar.
National economies merging into an interdependent global economic system.

Globalization of Markets

“Merging of historically distinct and separate national
markets into one huge global marketplace.”
– Facilitated by offering standardized products:
Citicorp
Coca-Cola
Sony PlayStation
McDonalds
– Does not have to be a big company to participate:
Over 200,00 U.S. companies with less than 100 employees had foreign sales in 2000.
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