How does the environment of another country affect a business operating internationally?

It is important for organisations to be aware of the foreign business environment that they are investing in. As a lot of money will be invested when a business decides to operate abroad, risk needs to be reduced by ensuring that the necessary research is conducted to find out about the business environment.

The most popular method is the PESTEL analysis so that opportunities or risks may be identified for solutions to be adopted when required. 

 The PESTEL analysis is used to understand the external environment that a business operated in and this will lead to identifying the opportunities and threats that may be in the external environment.

The PESTEL and SWOT analysis is the basic framework for making strategic management decisions and is more likely to help you adapt more quickly to the realities of a new business environment while taking advantage of changes that occur.

 (1): Currency exchange converter      (2): Currency exchange converter


 Learning objectives - session 18th November 2013 - Room: S216
  • List the potential problems of going global
  • Conduct a PEST or PESTEL analysis on a chosen country to operate in
Potential problems of going global
  • Human resource needs
  • Technological differences
  • Funding needs
  • Product or service differentiation
PESTEL
  • Political upheaval or instability: A key market may be removed due to political differences between countries
  • Environmental restrictions
  • Social differences:  In relation to the workforce as well as consumers
  • Technological differences
  • Economic health
  • Differences in legislation and regulations: Particularly outside Europe

 Group assignment (P3: Activity 1) to aid the completion of (Task 5: P3)

Select a country in one of the following regions for your research:

(a): Asia, (b): Europe, (c): Americas
Utilise the resources - on section 2 of this web-log - to help you complete the learning objectives.

See P3: Part (B) - "How does the culture of another country affect a business operating internationally?" - for the next session's learning objectives.