Understanding the Dynamic Nature of Business in the Global Business Environment

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
L O 1................................................................................................................................................3
Understand dynamic nature of business within global business environment............................3
L O 2................................................................................................................................................4
Need to behave ethically..............................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The term business means that an enterprise or an organization is involved in professional,
commercial or industrial activities. It can also defined as the organized activities and efforts of
people to develop and offer goods and services to customers. The Report will outline dynamic
nature of business, need for organization and individuals to behave ethically in relation to social,
environmental and economic issues.
L O 1
Understand dynamic nature of business within global business environment.
The term global business refers to the environment in various sovereign countries with
the factor exogenous to the environment of domestic country of the organization that influences
decision-making on capabilities and use of resources of the business. Modern business is
dynamic and continuous change is required to remain competitive. These changes forces
companies to spend amount on research for responding towards the changes in global business
environment.
Businesses such as Tesco, Sainsbury etc. are affected by the external business
environment as much as they are affected by the companies of competitors. There are various
global factors that are influencing the businesses of organizations such as political, legal,
technological, social and economic factors. Management of the organization should have
understanding of these factors because they play an important role while developing different
types of strategies (Davis and Challenger, 2015).
External environment -
No company is large enough to create significant changes in external environment.
Global level of competition is an uncontrollable factor in external environment. There are some
situations in which the business can influence external events through business strategies. For
example – There are major pharmaceutical companies that has become successful in getting
Food and Drug Administration to improve the process of approval for new drugs.
Political -
One of the major factor for the managers to focus in day to day business activities is
political climate. Such as different laws passed by government, general political stability,
government activities are changing day by day. For example – Company like General Electric