Global Issues In Management Analysis 2022

Running head: GLOBAL ISSUES IN MANAGEMENT
Global Issues In Management
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Author’ Note

GLOBAL ISSUES IN MANAGEMENT
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PESTLE analysis is an effective tool which is used for the purpose of evaluating the
external market conditions on the basis of which important decisions are taken from the
perspective of a business. The different factors which are considered for analysis are properly
listed below in details:
Political Factors
The political factors have an influence on the operations of business and also
determine the opportunities which are available to a company. The type of ideology which is
followed in the country is also a determining factor (Perera 2017). For example, in case of
capitalistic ideology, private businesses would thrive considering the opportunities and
control, whereas in socialistic ideology country, the level of governmental intervention would
be more. The governmental stability and restrictions also plays an important role in taking
vital decisions for the business. Some of the governmental interventions which can affect the
operations of a business are restriction imposed on trade, transfer pricing regulations (Gupta,
Gupta and Gupta 2019). The management of a company needs to consider such aspects in
decision making process and ensure business stability is maintained.
Legal Factors
The legal factors play an important role in shaping the policies of the business and a
business must always adhere to the legal regulations which are applicable in the country.
Some of the international laws are also applicable on business if global operation is a part of
the activities of the business (Kolios and Read 2013). A business needs to adhere to
intellectual property regulations as well registration and other requirements before
commencing the operation of the business. In addition to this, a business also needs to spare a
part of the profits as taxes to the government complying with the taxation regulations of the

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country. For example any business which is earning profits needs to file returns on a quarterly
or semi-annual basis in order to adhere to legal taxation provisions.
Socio-Cultural Forces
The general rule which is to be followed by a business is to look after the needs of the
customers and ensure that the business is able to adapt to the changes which takes place in the
social environment. The different factors which needs to be the basis for taking major
decisions for the business are religious beliefs of the customers, attitudes and customs, taste
and preference patterns of the consumers (Paul, Cadle and Yeates 2014). The social-cultural
factors can change the operational structure of the business and the same allows the
management to make changes as per the taste and preference patterns of the consumers. For
example, a religious view can refrain customers from purchasing a certain product and this
shows that religious opinion have an impact on the operational process of the business and
the revenue generation which is made by the business.
Cultural Factors
The cultural factor also plays a vital role in framing of strategies and policies of a
business. The management of the company needs to select a target group of customers who
would be the main source for the company to generate income. The taste and preferences of
the customers helps the business to understand the basic needs of the customers and
manufacture goods according to the same criteria. For example, in a American culture the
clothes which are in trend would be very different from the clothes which are in demand in
the middle east countries. The difference in culture and climatic conditions affects the choices
of the people. The management of a company needs to take a note of this situation and frame
proper policies so that appropriate measures are taken by the business in such a respect.
Country Risks