strategic managment

1. SUN DAERO COLLGE
SCHOOL OF GRADUATE STUDIES
DEPARTEMENT OF MANAGEMENT
MASTERS OF BUSINESS ADMINISTRATION (MBA).
PROGRAM
BY: NIGUS GIRMAY
ID NO. MBA/0251/12
: MEHEMOD
JUNE, 2023,MEKELLE

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MBA Program
Individual Assignment 2 International Business
➢Submit this assignment through this Email mahmudabadr2000@gmail.com
ENVIRONMENT Anaysis In International Business
1. Environment of international business and its significance
The Importance of International business is fourfold if a company is afraid of the
recession in their own country. Companies like Mitsubishi, Daikin, Blue Star and others
have presence across multiple countries and regions. This is so that they can mitigate the
effects of a slow economy in their home countr
The (IBE) International Business Environment is multidimensional including the political
risks, cultural differences, exchange risks, legal & taxation issues. Therefore (IBE)
International Business Environment comprises the political, economic, regulatory, tax,
social & cultural, legal, & technological environments.
The International business environment includes various factors like social, political,
regulatory, cultural, legal and technological factors that surround a business entity in
various sovereign nations. There are exogenous factors relative to the home environment
of the organization in the international environment.
significant world trends in the past two decades has been the rapid, sustained growth of
international business.
What Are the Advantages of International Trade?
Increased revenues. ...
Decreased competition. ...
Longer product lifespan. ...
Easier cash-flow management. ...
Better risk management. ...
Benefiting from currency exchange. ...
Access to export financing. ...

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Disposal of surplus goods.
2. Economic environment
The term economic environment refers to all the external economic factors that influence
buying habits of consumers and businesses and therefore affect the performance of a
company. These factors are often beyond a company's control, and may be either large-
scale (macro) or small-scale (micro)
Economic systems can be categorized into four main types: traditional economies,
command economies, mixed economies, and market economies
.The different kinds of economic systems are Market Economy, Planned Economy,
Centrally Planned Economy, Socialist, and Communist Economies. All these are
characterized by the ownership of the economics resources and the allocation of the same.
The economic environment is perhaps the most important aspect of a remote
environment. In fact, economic environment is the potential for the success of the
international trade. By economic environment, we mean domestic or national and
international or global.Recession increases the demand for products and services that
offer good value at lower prices. Business buyers buy products that are economical and
efficient, offer value, help them to streamline practices and procedures, and improve their
services to their customers.
3. Social/cultural environment
Sociocultural is a term related to social and cultural factors, which means common
traditions, habits, patterns and beliefs present in a population group.
The social environment, social context, sociocultural context or milieu refers to the
immediate physical and social setting in which people live or in which something happens
or develops. It includes the culture that the individual was educated or lives in, and the
people and institutions with whom they interact.
Elements are - language, social norms, religion, ethics, socio economics, mores, traditions,
societal regulations, nationalism, aesthetics, material culture, attitudes, values, social
organisation.
4. Religion
Religion is a social-cultural system of designated behaviors and practices, morals, beliefs,
worldviews, texts, sanctified places, prophecies, ethics, or organizations, that relates

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humanity to supernatural, transcendental, and spiritual elements; however, there is no
scholarly consensus over what precisely constitutes ...
The religions in this book include Christianity, Islam, Hinduism, Buddhism, Sikhism,
Taoism, Judaism, Confucianism, Bahá'í, Shinto, Jainism, and Zoroastrianism.
5. Language
Language is the specifically human capacity for acquiring and using complex systems of
acoustic as well as kinesic signals to express thoughts and feelings, and language is used
for the exchange of knowledge and experiences. The problem on this planet is the
language systems vary greatly from region to region.
6. Demographic environment
Demographic environment refers to the human population characteristics that surround
a firm or nation and that greatly affect markets.
Birth, death and migration are called demographic component as well as the determining
elements of population change because they affect the situation of population. Therefore,
the size of population depends mainly upon birth, death and migration.
Income is one demographic variable that can affect businesses. A company's products
usually appeal to certain income groups. ... Conversely, people with comparatively lower
incomes are more sensitive to price and, therefore, may prefer purchasing discount
products. People with lower incomes have less disposable income.
7. Political environment
Political Environment is the state, government and its institutions and legislations and the
public and private stakeholders who operate and interact with or influence the system.
The political atmosphere should be good and very stable for a firm to operate
successfully.
political-legal environment is a combination of a lot of factors such as the current political
party in power, the degree of politicization of trade and industry, the efficiency of the
current government, government policies, current legal framework, the public attitude
towards the economy, etc.
8. Regulatory environment
regulatory environment is the set of taxes, rules, and laws or regulations that businesses
must adhere to.

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part of the firm's external marketing environment on which legal and political forces act
to change regulations which affect the marketing effort; regulation changes can pose
threats or present opportunities.
These core regulatory components—regulator, target, command, and consequences—
affect the incentives and flexibility that a regulation provides. Regulated businesses will
have maximal flexibility when the regulator is the industry itself.
9. Natural environment
Natural and environmental resources
These can be: physical such as soil, water, forests, fisheries, and animals, minerals (e.g.
copper, bauxite, etc.); gases (e.g. helium, hydrogen, oxygen, etc.); and. abstract such as
solar energy, wind energy, landscape, good air, clear water, and so forth.
Clean land, air, and water are environmental resources, as are the abilities of land, air,
and water to absorb society's waste products. Heat from the sun, transportation and
recreation in lakes, rivers, and oceans, a beautiful view, or the discovery of a new species
are all environmental resources.
10. Technological environment
Technological environment refers to the state of science and technology in the country
and related aspects such as rate of technological progress, institutional arrangements for
development and application of new technology, etc. According to the well known
economist .
The technological environment refers to external factors in technology that impact
business operations. Changes in technology affect how a company will do business. A
business may have to dramatically change their operating strategy as a result of changes
in the technological environmen
that part of the firm's external environment in which changes in technology affect the
firm's marketing effort; the changing technological environment may pose threats or
present opportunities.
11. Globalization
Globalization is the word used to describe the growing interdependence of the world's
economies, cultures, and populations, brought about by cross-border trade in goods and
services, technology, and flows of investment, people, and information.

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Globalization is about the interconnectedness of people and businesses across the world
that eventually leads to global cultural, political and economic integration. ... Due to the
increased demand in the high tech industry around the world, business and industry have
potential for huge profits working globally.
Globalization is a complicated issue. ... The proponents say globalization represents free
trade which promotes global economic growth; creates jobs, makes companies more
competitive, and lowers prices for consumers. 3. Competition between countries is
supposed to drive prices down.
The empirical result revealed that economic growth of Ethiopia is being affected by
globalization both in the short-run and long-run. ... Therefore, Ethiopia can be benefited
more provided that if the economy of country is integrated and opened to competitions
from the rest of the world