The business organization is formed for various purposes. The business involves any economic activity which generates goods and services for the exchange of any form of payment while international business is the exchange of goods and services in more than two countries. There are three types of business enterprises and they include profit making, nonprofit making, and social enterprises (Daniels, 2007). The business organization has different stakeholders including customers, employees, investors, local community and even the Government. The stakeholders are individuals affected by the business activities. Business organizations are started by entrepreneurs who are responsible for executing business activities. Entrepreneurs can either start to run a small to medium size business organization depending on the amount of capital available (Turner, 2006). There is some aspect of the environment which fosters successful entrepreneurs and they include social factors, legal factors, availability of finance and infrastructures.
It is easy for the entrepreneurs to start a company either as a limited company or as a private limited company. Once the company has been registered, it becomes a distinct legal entity which has the power to sue and be sued, contract and be contracted and do its own affairs separate from its owners (Daniels, 2014). A multi-national company has different subsidiaries across different countries and it is headed by the board of directors as the highest decision makers. The company is run by the chief executive officer who is answerable to board of directors. In order to understand the global business environment, it is necessary to conduct PESTLE analysis to understand the political, economic, social and technological condition of the business.
Globalization is the movement of goods and services across different countries. The process allows products produced in another country be distributed in other countries. There are two different perspectives of globalization hyperglobalization and skeptical perspectives. The Cultural and social environment also affect the business organization. Culture is a way of life of a people. It includes language, values and beliefs, religion and customs (Luthans, 2015). It is important for the business organization to address impacts on the societies and the business must ensure that there are changes in the society. Finally, the Government and the business have a responsibility of ensuring that human beings meet their human wants sustainably.
Daniels, J., Radebaugh, L., Sullivan, D. (2007). International Business: environment and operations, 11th edition. Prentice Hall. ISBN 0-13-186942-6
Luthans, F., Doh, J. P. (2015). International Management: Culture, Strategy and Behavior, 9th edition. McGraw Hill. ISBN 0-07786244-9Daniels, J., Radebaugh, L., Sullivan, D. (2014). International Business: environment and operations, 15th edition. Prentice
Turner, Fred (2006). From counterculture to cyberculture: Stewart Brand, the Whole Earth Network, and the rise of digital utopianism. Chicago: University of Chicago Press. p. 203.
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