Forces Shaping Global Business Environment

Individual Project
Report

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Major forces which has given the shape to global business environment...................................3
Micro environment impacting the change in an organization......................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
There are various forces which influence a business market. A business especially which
is running at a global level has to consider all these influencing factors. These factors consist of
internal factors and external factors. Internal factors include employees, resources used by the
company, customers, clients, suppliers and etc. Whereas the external environment consists of the
political, social, technological, legal and the like factors. An organization changes its strategies
according to the contemporary business environment. For reference purpose this report has taken
an example of a company, Samsung. Samsung is the multinational company, which has its origin
form south Korea (Barac and et al., 2016). The company is engaged in the business of
manufacturing of mobile phones, electronics appliances, ships, chemicals and much more. The
company was first founded in the year 1938 by Lee Byung-chul.
This report discuss about the macro environment which affects the operational activities of
business and also the micro environment which put the impact upon the company.
TASK
Major forces which has given the shape to global business environment
There are various forces which have provided the shape to this sector or industry. All
these factors are out of control of any business, means the business cannot operate these factors
but these factors can operate such businesses. The major factor which has provided the shape to
global business environment can get ascertain through PESTEL analysis. PESTEL analysis is a
framework through which an organization can get to know about the threats and opportunities
which the company can face in a region. The framework helps the organization in the formation
of their strategies through which they can attain their determined goals or objectives with
minimum threats or risks. The PESTEL analysis of Samsung Company can be as follows:
Political factor: This factor is consists of the rules and regulations which are formed by the
government or the ruling political party. Some of the examples may include foreign trade
policies, taxes and the like. The company Samsung would like to get operated in the nations
where the political party is stable because they know the consequences of the business which is
operating at the region where the political party is unstable (Barr and et al., 2018). The stable
party would lead to the stable rules and policies whereas the places where the political party is
unstable there the changes in the rules and policies are very frequent. The frequent or often
changes in policies creates disturbances in the operational activities of the business only as they
have to make the changes on a frequent basis putting sacrifice upon their major business issues.
Also the company does not prefer to make or establish their manufacturing units at the places
where the cost for raw materials and the resources are high or unstable. The unstable or high
prices cost more to the company leading the high prices for the product. Also it leads to
minimize the profit margins for the company.