BUSINESS ENVIRONMENT

Business Environment



Business Environment

Introduction

Business environment is a set of political, economic, social and technological (PEST) forces that are largely outside the control and influence of a business and that can potentially have both a positive and a negative impact on the business (Beyond Grey Pinstripes 2003).

The process of starting up and developing a business is not just an adventure, but also a real challenge. In order to help entrepreneurs with this, it is essential to create a favourable business environment.

Importance of International Trade, Economic Integration and Global Market to UK Business Organisations

While trade between distance partners dates back to the beginnings of civilization, the importance and volume of trade grew rapidly in the 19th century, largely due to advances in transportation technology, which allowed trade and commerce to take place over greater distances and at faster rates.1 The world economy, which is what is often referred to as the global economy, encompasses the international movement of goods, people and capital and all of the actors, institutions, and sovereigns, (etc.) that participate in this process (Anderton 2005). Looking at the history of international trade during the last two hundred years, we see increasing market integration, accompanied by rapid growth in international trade, finance, and mass labor migration.

In this section you will find Internet and print resources dedicated to the study of the history of the world economy, economic thought and the origins of various economic theories. These links provide access to numerous economic history sources, as well as access to important collections of texts and works of influential economists throughout the world (Barrell 2007). Also included are links to publications in economic history that are available online.

Economic progress is linked to world trade and those who preach trade restrictions are denying this fact. Countries like the old communist bloc (Russia, East Germany, etc.) have not developed as fast as those with more outward orientation. The same can be said of African nations, where the inability to industrialise and export in volume has locked them into, generally, and primary product producers. Economic Structural Adjustment Programmes (ESAP) are supposed to remedy this situation by giving "command economies" a market oriented focus.

Another argument concerns whether marketing has relevance to the process of economic development. Less developed countries (LDCs) have traditionally focused on production and domestic income generation. Also, marketing addresses it to needs and wants and it could be argued that where LDCs' productive capabilities are far less than unsatisfied needs and wants, then marketing is superfluous. However, adopting "marketing" could lead to the more efficient and effective use of productive and marketing resources and it may be able to focus on current needs and find better solutions. For example, techniques developed in the West for optimising transport resources could well be transferred to effect (Barrell 2008). Similarly, adopting new methods of marketing may give better results. A good example is the Cold Storage Company of Zimbabwe (CSC). By changing from the current system of marketing cattle (the CSC takes in cattle, at fixed prices and slaughters) to ...