ENVIRONMENT MANAGEMENT TRADE

ENVIRONMENT MANAGEMENT TRADE

NAME : KUNDAN TIWARIPROGRAME : M.B.A

contents

ENVIRONMENT

• BusinessActivities that require the movement of resources , goods, services , and skills

• TradeThe import or export of good and services to consumers.

• InvestmentInvestment of resources in business activities outside a firm’s home.

• ManagementThe performance of a management functions.

STRSTEGY FORMULA

• Expand salesWhen markets are saturated, should go over areas to increase sales and profit.

• Acquire resourceresources may be more readily available and less costly in other place/state/country.

• Diversify sources of sales and suppliesDifferent Business cycle between states/placesMay avoid impact of price swings or shortages.

• Avoid tariff

CHANGE IN ENVIRONMENT

DISTANCE AND CULTURAL BARRIERS

• Distance and cultural barrier also closed the environment.

– Distance close the markets as far as some managers were concerned.

– Communication could be difficult.

– Languages and cultures were different.

EFFECTS OF FREE TRADE ON MANAGERS

• Declining barriers have opened great opportunity for managers.

– Manager can not only sell goods and services but also buy resources and components.

• Managers now face a more dynamic exciting job due to competition.

Task Environment

Suppliers and Distributers

• Managers buy products from suppliers and supply themselves.

– Key is to keep quality high and costs low.

• Outsourcing : firm buy inputs from throughout the range.

• Distributors : each firm often has a unique system of distribution

– Manager must identify all the issues.

Customer And Competitors

• Formerly distinct national markets are merging into a huge market.

– True for both consumer and business goods

– Create large opportunities

• Still, Manager often must customize product to fit the culture

– McDonald’s sells a local soft drink (in Brazil)

FORCES ON GENARAL ENVIRONMENT