Six Environments of Business
The six environments of business are Domestic, Global, Technological, Political-Legal, Sociocultural, and Economic and all are interlinked in some form or fashion. One affects the other at different levels at different rates of advantage or disadvantage. A business’ environment are factors that affect the business’ ability to operate, which may tie in one or more of the types listed above. When one looks at the environment of Domestic Businesses understand that it is considered to be solely within the country of origin. It does not cross international borders by imports or exports.
While it is quite similar to a global business, it does not require the extra steps for a business to conduct itself within the borders of another country. Many global businesses are required to adapt many of their methods and even products to meet many restrictions or regulations that could be posed on them by the importing country. The domestic business can produce, employee, deliver its goods and service all with in its local or national area.
“From the founding of the first colonies to the present day, small business has been of great importance to the majority of Americans, as the dominant form of business enterprise in their nation and as a symbol for their socioeconomic aspirations (Blackford, 2003).” Until 1880, very few large businesses actually existed in America. Small businesses were based on the hope of success with the opportunity for growth in their still new and growing nation. Between 1880 and 1920, industries began to grow and so did the completion for these small businesses. The 50 years and growth following WW1 only intensified the battle towards success (Blackford, 2003).
While not all small businesses lost out in the huge business growth of the past, today’s companies are growing leaps and bounds. However, they are up against stronger competition with the larger global companies that can offer a large production at a cheaper cost. Many domestic companies
While it is quite similar to a global business, it does not require the extra steps for a business to conduct itself within the borders of another country. Many global businesses are required to adapt many of their methods and even products to meet many restrictions or regulations that could be posed on them by the importing country. The domestic business can produce, employee, deliver its goods and service all with in its local or national area.
“From the founding of the first colonies to the present day, small business has been of great importance to the majority of Americans, as the dominant form of business enterprise in their nation and as a symbol for their socioeconomic aspirations (Blackford, 2003).” Until 1880, very few large businesses actually existed in America. Small businesses were based on the hope of success with the opportunity for growth in their still new and growing nation. Between 1880 and 1920, industries began to grow and so did the completion for these small businesses. The 50 years and growth following WW1 only intensified the battle towards success (Blackford, 2003).
While not all small businesses lost out in the huge business growth of the past, today’s companies are growing leaps and bounds. However, they are up against stronger competition with the larger global companies that can offer a large production at a cheaper cost. Many domestic companies
References: Ajami, Riad A.; Cool, Karel; Goddard, G. J. (2006). International Business: Theory and Practice. Armonk, NY, USA: M.E. Sharpe, Inc., p. 38. Blackford, M. G. (2003). A History of Small Business in America. University of North Carolina Press. McWhriter, Norris (2000). Norris McWhriter’s Book of Historical Records: The Story of Human Achievement in the Last 2,000 Years. London: Virgin Publ. Ltd., p. 21. Okpara, John O. (2008). Globalization of Business: Theories and Strategies for Tomorrow 's Managers. London, GBR: Adonis & Abbey Publishers Ltd, 2008. p 35.