Anh Tuan
Victoria University of Wellington | BUSINESS ENVIRONMENTAL REPORT | POLITICAL AND TECHNOLOGICAL ENVIRONMENT |
Name: LE ANH KHANH MINHStudent ID: 300269419LECTURER: NGUYEN HUU LOC8/31/2012
Word count: 2100 |
TABLE OF CONTENT 1. Introduction 2. Political environment 3. Technological environment 4. Conclusion
1. Introduction “Tom, the playing field is being leveled”, said Infosys’s former Chief Executive Officer Nandan Nilekani to Pulitzer Prize winner Thomas Friedman in an interview in 2004. In the era of continuous technological advances and innovation, of consumer’s more convergent tastes and preferences but higher demand, of the rise in economic integration, competition for market share on a global scope becomes fierce and relentless than ever before. As the battle gets harsher, surviving in the market, not to mention making profit, is now more challenging a task. For that reason, organizations operating international business must pay great attention to the four factors which have significant influence on the success of companies and firms: social/cultural, technological, economic and political environment.
This report emphasizes on the political and technological aspects faced by firms while doing business internationally. In terms of political environment, I concentrate on government intervention in the production and distribution of certain products, exemplified by the case of Singapore, where the government bans chewing gum all over the nation. Next, with regard to technological environment, I examine the importance of radical innovation as a competitive advantage of MNEs. One illustration of this is Sony and the advent of the world’s first portable music player – Sony Walkman. 2. Political environment:
Getting involved in international business entails country risk – “exposure to potential loss or adverse effects on company operations and profitability caused by developments in a country’s political and/or legal
Name: LE ANH KHANH MINHStudent ID: 300269419LECTURER: NGUYEN HUU LOC8/31/2012
Word count: 2100 |
TABLE OF CONTENT 1. Introduction 2. Political environment 3. Technological environment 4. Conclusion
1. Introduction “Tom, the playing field is being leveled”, said Infosys’s former Chief Executive Officer Nandan Nilekani to Pulitzer Prize winner Thomas Friedman in an interview in 2004. In the era of continuous technological advances and innovation, of consumer’s more convergent tastes and preferences but higher demand, of the rise in economic integration, competition for market share on a global scope becomes fierce and relentless than ever before. As the battle gets harsher, surviving in the market, not to mention making profit, is now more challenging a task. For that reason, organizations operating international business must pay great attention to the four factors which have significant influence on the success of companies and firms: social/cultural, technological, economic and political environment.
This report emphasizes on the political and technological aspects faced by firms while doing business internationally. In terms of political environment, I concentrate on government intervention in the production and distribution of certain products, exemplified by the case of Singapore, where the government bans chewing gum all over the nation. Next, with regard to technological environment, I examine the importance of radical innovation as a competitive advantage of MNEs. One illustration of this is Sony and the advent of the world’s first portable music player – Sony Walkman. 2. Political environment:
Getting involved in international business entails country risk – “exposure to potential loss or adverse effects on company operations and profitability caused by developments in a country’s political and/or legal
References: Bellis, M. (2012). The History of the Sony Walkman. Retrieved August 18, 2012 from http://inventors.about.com/od/wstartinventions/a/Walkman.htm. Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., Freeman, S. (2012). Political and legal systems in national environments. International business: the new realities (p.181). Australia: Pearson Australia. Control of Manufacture Act (chapter 57). (1959). Retrieved August 1, 2012 from http://statutes.agc.gov.sg/aol/search/display/view.w3p;page=0;query=DocId%3A%228f8e5789-d2de-42d1-ac70-7bd3b55a3359%22%20Status%3Ainforce%20Depth%3A0;rec=0. Department of Statistics Singapore. (2012). Key annual indicators. Retrieved August 1, 2012 from http://www.singstat.gov.sg/stats/keyind.html#econind. Haire, M. (2009). The Brief History of the Walkman. Retrieved August 20, 2012 from http://www.time.com/time/nation/article/0,8599,1907884,00.html. Hays, J. (2009). Sony: Its history and success, Akio Morita, Transistor radios, the Walkman, Howard Stringer and Changes at Sony. Retrieved August 18, 2012 from http://factsanddetails.com/japan.php?itemid=918&catid=24&subcatid=157. Incremental vs. Radical Innovation. (2006). Retrieved July 18, 2012 from http://innovationzen.com/blog/2006/08/04/innovation-management-theory-part-2/. Sony Corp. (2012). Corporate History. Retrieved August 20, 2012 from http://www.sony.net/SonyInfo/CorporateInfo/History/history.html. Wrigley pulls out of Singapore. (1993). Retrieved August 1, 2012 from http://articles.chicagotribune.com/1993-11-10/news/9311110036_1_wrigley-chewing-gum. Friedman, T. L. (2005). The World is Flat: a brief history of the twenty-first century. New York, NY: Farrar, Straus and Giroux. Gums return to Singapore after 12 years. (2004). Retrieved August 20, 2012 from http://www.usatoday.com/news/world/iraq/2004-05-26-singapore-gum_x.htm.