Importance of Assessing the Global Business Environment for Strategic Planning and Investment

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
ESSAY.............................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The global manager must focus on proper environmental scanning in order to make
strategic decision in a reliable and accurate manner. This assessment tends to focus on
effectively analysing the importance of assessing the global business environment in order to
develop effective strategic business plan and also in turn consider investing outside of the
country with specific relevant examples.
ESSAY
“A skilful global manager cannot develop a suitable strategic plan or consider an investment
abroad without first assessing the environment – political, economic, legal, and technological –
in which the company will operate” (Deresky, 2014 p.52)
Bini, Bellucci and Giunta, (2018) sought to examine the fact that, a global manager in
turn is considered to be as an effective person who in turn are largely responsible for carrying out
the business operations across various time zones and diverse cultural groups. This in turn
eventually calls for new set of skills and capabilities. A global manager in turn cannot develop a
suitable strategic plan because it in turns to set up the direction for specific organization. Douglas
and et.al., (2018) argued that, a global manager in turn cannot effectively develop the suitable
strategic plan without even assessing the external business environment of the organization.
External environment factors in turn are classified into macro and micro external environmental
factors. Macro external environmental factors in turn cannot be controlled, but the business in
turn are largely affected by such factors such as demographics, social, physical forces,
technological factors, etc. On the other micro environmental factors are internal environmental
factors which in turn is controllable by the management of the organization. It includes
distribution channels, competitors, customers, suppliers, etc. Assessing the external business
environment which mainly comprise of political, legal, environmental, social, economic,
technological, etc. in order to effectively assess the way company will operate. This helps in
shaping the future of the industries and also helps organization to be ahead of the competition. A
global manager in turn must focus on effectively analysing and interpreting the various consumer
trends. These socio- cultural force in turn helps in turn largely influence the organization at a
very large scale. When multinational companies tend to operate a global level, then it has to
comply with various components in order to operate at a global level. Every country tends to
have different set of rules and policies. There are various political factors such as labour law,