A reason for change could be in relation to a change in the law which is enforced by the government. This policy could influence the business directly or indirectly but it would still be necessary to make relevant changes to the organisation therefore this would be related to external factors. An internal reason for change could be new technology such as software upgrade which could help to improve and develop the organisation. Another reason could be looking at reducing waste and cost, such as introducing a paperless system within the organisation i.e. DMS (document management system).
The study of global business is relevant to any person who is in the business world, no matter the size of their organization. The first reason is that so many things are imported from other countries. Closing a deal in China will be a very different process than would be in France than it is in India. Customs of other countries need to be followed if a businessperson is to be successful worldwide. Also important to consider are the difference in shipping costs from different ports, as it will change the “landed cost” of the item, and the retail price and profit margin.
These can come from hugely varied sources, from the weather to a war on the other side of the world. The economy and government attempts to control it are more obvious influences on business activities but how each business will be affected are vastly different. During this unit you will investigate the differences in businesses; how they are run organised and influenced. Why certain businesses are organised in different ways and which individuals and organisations are interested in the progress of different businesses. By the end of this unit you should understand: • The range of different businesses and their ownership.
To refute this argument, they have to involve themselves into solving social needs of the host country, and this is called Corporate Social Responsibility. Social responsibility and ethical behaviors is some of the key factors that the international managers have to keep in consideration while operating in host countries. This is importance as Global interdependence has increased and without this managing independently will not occur in MNC. However in recent times, violations against human rights, environmental and business misconducts issues have been attached with the company. These issues have originated in Columbia, India and Mexico.
Abstract This paper is discusses the Milton Friedman Theory and how it applies corporations and the government. It will also discuss the responsibilities of firms and the government and whether or not they play a role in the expansion the Friedman Discussion. Milton Friedman Goal of the Firm Milton Friedman is a noble prize winning economist whose philosophy on corporate social responsibility (CSR) has shaped the business world today. Friedman believed that businesses only social responsibility is to utilize resources and engage in activities that would maximize profits without the use of deception or fraud while conforming to the basic rules of society (Friedman, 1970) . Executives are hired to act as fiduciary agents of their stockholders for the purpose of increasing wealth (Smith, 2003).
UNIT 1 P6- THE BUSINESS ENVIRONMENT Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders. Tesco and The Manchester College In all businesses there some factors that have impact on how the organization is run and this are political, legal and social factors. Political factors are factors that deal with the public in which are the decision taken by the politicians who have power to run the country and control people and their businesses. This includes government support, taxation, direct support, infrastructure, enhancing skills of the population, membership of international trading communities. Government support for different types of organisations The Private Sector: the government helps the private sector by providing grants to start up new enterprises, and competition commission restricts businesses from getting too big and abusing of their power and force out smaller rivals.
This can affect the growth of the company. By adopting IFRS, U.S. will also be adopting a big risk, if the quality of the new standards do not match the U.S. GAAP. Looking at the various possibilities of adopting IFRS in the U.S, it can be said that it is a big decision to be made. Although, in my opinion we should adopt to IFRS in financial reporting only if the benefits outweigh the costs of transition. If adopting IFRS benefit monetarily and make the transition easy for the investors, auditors, and the public companies, then there should be no harm in accepting it for financial reporting
It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm.” (Harvard) So how do these two men define social responsibility and what does it mean to the real world? There seems to be a lot to be here, between their responsibility to the public and their responsibility to the environment and their own business, this can get complicated, and if they do screw up, the media lets everyone know it. As we seen with Enron, once a company screws up, the media is all over it. Several scandals and trouble in the media lately have brought out the crimes of society that billionaires have committed for years. This is dealing with consumers and stock holders, this is dealing with the property that the American public invests in, this is a topic where if a business does not stay on the straight and narrow, public opinion will close out.
Fair trade is set in place to make sure the global economy is serving the people. A benefit to being socially responsible is how the public sees you. Most consumers prefer to buy from ethical businesses. Although they need your products, competition allows them to pick in their favor. Not only does being socially responsible give you a better public image, it also will give you better and more media coverage.
In the service sectors, the cost saving from offshoring enables companies to create new service lines, many of which had been deferred for want of investment. New services increase customer satisfaction and become new revenue streams, as well as growth paths for companies. The geographic nature of offshoring brings its own advantages. It helps the company expand its reach, thereby helping the company grow. This growth mitigates any negative effects of offshoring.