aime_nathan_BUS310_assignment7

aime_nathan_BUS310_assignment7 - Running Head: AK STEEL:...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Running Head: AK STEEL: BUSINESS ENVIRONMENTS AK Steel: Business Environments Nathan Aime Business 310 Professor Cronce October 23, 2011 AK Steel: Business Environments
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
AK STEEL: BUSINESS ENVIRONMENTS The six business environments include domestic, global, technological, political-legal, sociocultural, and economic. You can monitor the changes in an environment and plan accordingly, or you can just react as each situation develops and hope to survive. Successful companies are the ones who see trends developing and plan in advance to deal with the anticipated changes. The term ‘business environment’ connotes external forces, factors and institutions that are beyond the control of the business and they affect the functioning of a business enterprise. These include customers, competitors, suppliers, government, and the social, political, legal and technological factors, etc. While some of these factors or forces may have direct influence over the business firm, others may operate indirectly. Thus, business environment may be defined as the total surroundings, which have a direct or indirect bearing on the functioning of business (Ajami 2006). It may also be defined as the set of external factors, such as economic factors, social factors, political and legal factors, demographic factors, and technical factors, etc., which are uncontrollable in nature and affects the business decisions of AK Steel. The domestic business environment is the environment in which AK Steel conducts its operations and receives its revenues. In this environment, AK Steel wants to be close to its customers, but cannot control them, their needs, or their wants. Also in this environment, AK Steel wants to form close relationships with its suppliers, but cannot control these suppliers or their issues within their organizations, such as strikes or shortages, which can cause delivery issues. And finally, in this environment, AK Steel wants to distinguish itself from its competitors, and again, it cannot control its competitors or their actions or reactions within the market. The three elements of the domestic business environment are close relationships with customers,
Background image of page 2
AK STEEL: BUSINESS ENVIRONMENTS strong relationships with suppliers, and distinguishing differences between the organization and its competitors (Bowman 2011). In the global business environment, this environment includes the international forces that affect AK Steel. These include: international trade agreements such as the European Union, Mercosur, and others; international economic conditions such as high inflation rates and credit card interest rates in Latin America; political unrest, which can follow the election of a new president in a country or can involve land reform issues; international market opportunities, such as Wal-Mart expanding into China or Latin America; suppliers outsourcing, such as airlines or credit card companies locating their call centers in India; cultural differences—for example,
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/08/2012 for the course BUSN 310 taught by Professor Alex during the Spring '11 term at American Public University.

Page1 / 8

aime_nathan_BUS310_assignment7 - Running Head: AK STEEL:...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online