7 pages business management.docx - Managing Business 1...

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Managing Business 1 MANAGING BUSINESS Name Class Professor School City and State Date
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Managing Business 2 Executive Summary Globalization offers business opportunities to expand their operations into other regions and seek competitive advantages. However, as business work ion their expansion programs, it is important for them to consider factors that may hinder achievement of their goals. More importantly, it is important to consider the external environment as this is beyond their control. With regards to their internal environment, it is imperative that organizations evaluate their key resources, so as to find a better way of leveraging on them and exploiting opportunities in the markets. This way, they are able to develop and sustain competitive advantages.
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Managing Business 3 Table of Contents Executive Summary ......................................................................................................................... 2 Question 1 ........................................................................................................................................ 4 Political ........................................................................................................................................ 4 Economic ..................................................................................................................................... 4 Social ............................................................................................................................................ 5 Technological ............................................................................................................................... 5 Environmental .............................................................................................................................. 6 Legal ............................................................................................................................................. 6 Question 2 ........................................................................................................................................ 7 Question 3 ........................................................................................................................................ 8 Conclusion and Recommendations ................................................................................................ 10 Bibliography .................................................................................................................................. 11
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Managing Business 4 Question 1 The countries chosen for this assignment are the United States and China. There are a number of external environmental factors that the company need to consider while expanding its operations into these two countries. Political The political environment in both China and the United States are entirely different. As for China, there are both formal and informal rules which the company will have to abide by. Backaler (2014) notes that the Communist Party still has a lot of leverage in the economic activities of the country. This means that there is always the danger of a firm facing unclear demands from the authorities. It is therefore essential that the company has a local executive or partner who understands the environmental well and can offer solid advice on how to navigate the fluid political environment in the Chines market. In the case of the United States, there is a solid democratic ideals, with the effective rule of law. Backaler (2014) notes that foreign firms venturing into these market should find the business environment quite stable. Economic China offers a lot of opportunities for growth that Honda can capitalize on. First, over the past few years, the Chinese economy has achieved strong growth in its GDP, mostly around 5 percent (Morrison, 2015). At the same time, it has to be mentioned that the country is also experiencing high urbanization and savings rates which have increased consumption. Honda should be able to find a huge market for its products in this market. What’s more, the labor cost in China is significantly lower than in other parts of the world. As a result, the firm should be able to make substantial savings on labor cost. The United States is the largest economy in the world. Even though the recession of 2009 severely battered its economy, since 2014, the economy has been on the mend. Employment
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Managing Business 5 rates have been increasing, and manufacturing is doing better. President Trump’s administration is also keen to revive United States manufacturing. One way this is being done is by shielding
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