INTERNATIONAL BUSINESS.
These are government factors that may influence on the operations of the business. They include fiscal policy measures such as taxes, interest rates, and regional tariffs. These factors wil affect the business economically, therefore, the need to establish contingency measures to cope with changes in government policies. The federal government has promoted business infrastructure that promotes communication, energy supply, transportation, basic manufacturing. The country has established a fair judicial structure that offers timely justice in cases of business related disputes. The environmental regulations provided by the government and other environmental agencies such as EPA provide that new businesses should adhere to environmental sustainability measures that if not adhered pose a threat of risk to the business (Murray-Webster, and Williams, 2010). The provisions are that if the social costs of environmental sustainability are considered then such businesses are considered viable.
The country political arena is marked by strong opposition that may not have significant effects on the running of the business despite the few changes that may result from changes in leadership styles (Creelman, and Smart, 2013). The current government promotes businesses through tax incentives, and provision of laws that are hospitable to new businesses in the region. The Nikkei Weekly, Waa Street Journal, and Financial Times business newspapers are available to keep abreast to any political changes that may affect the running of the business.
Economic environment
Economic factors that may affect the business include inflation that will affect on prices, market structures and demand and supply forces, foreign exchange rates, growth patterns, and per capita income levels. Currently, the economy has low rate of unemployment is an indication of high economic activity that guarantees high levels of disposable income. This will ensure consumption of the cookies thereby increasing on sales.
The economy’s average hour earnings are twenty four dollar, and this is also a clear indication of a growing economy with high levels of disposable income. The economy’s consumer price index is also low indicating that changes in prices do not have significant effects on consumer demand. Overall the state of the economy is fit for business considering the increase in the value of dollar in many business related nations. There are no foreseen changes in the growth of the GDP implying suitability of growth of the cookie business.
Social factors and culture.
These include demographic factors such as culture, population, differences in social status, and geographical differences. The economy demography is comprised of diversity in terms of backgrounds and culture. This implies differentiated needs of consumption. However, no study on cultural values has argued against consumption of cookies. In fact, most communities despite their background consume the products. The business promises increased sales in both summer and winter seasons when customers need snacks for leisure and as accompaniments during winter. Boom sessions will also be characterized by different holidays celebrated on different seasons. For example, during Christmas the Christians, who form a majority, will contribute to increased sales.
Technological factors.
These are automation, technological awareness, and innovation levels that may affect the operations of the business. When it comes to technological adaptation, the market remains on top of the list in the globe. The country enables creativity through promotion of technological innovativeness. For this business there are available electrical cookers that are fast in production with varying mass capacities. Leading competitors have acquired expensive technologies that may limit the business operations as a result of heavy initial cash outlay, but if this is catered for penetrating in the market will not be a difficult task. The economy also acknowledges the contribution of technology in marketing; there are ready billboards for advertisements that will promote the business.
Legal framework and requirements.
This comprises of legal expectations and policies of the nation. The state recognizes anti-trust laws for businesses in practicing fair business, and preventing unnecessary competition. The laws illegalize conspiring to restraint commerce in market places regardless of income and size. Small business fall victims of unfair competition from large businesses, but have dominated most markets in major cities, neighborhoods, and niche markets. The laws address the following; monopolization, conspiracy to fix prices, price discrimination, conspiring to allocate customers or market laws, and safety standard Carter, MacDonald, and Cheng, 1997). With these laws in existence, the business will be protected from unnecessary competition from monopolies and other aspiring entrants.
There are also finance laws that ensure fare competition and protect business financial interests. The state also provides for advertising laws that guard against misleading or false advertisements. The cookie business also needs to adhere to health and workplace safety laws that provide for tools, equipment, and material required while starting the business. Additionally provisions of proper working areas and conditions must be followed if the business is to be considered legalized.
The safety standard laws of the nation do not differ considerably relative to other markets as the provisions include proper working conditions, well ventilated cooking areas, proper protective gear, fire equipment, and need for possession of emergency numbers placed at a visible place. There are few logistics involved in registration as the business only requires submission of reports of location, size, number of workers, hazards involved, and payment of registration fee to the county government of area of operation (Rennie, 2008).
Environmental concerns.
Environmental elements may either be internal or external: Internal in the sense of working conditions, and external in the effects on air, water, and land. Different environmental organizations exist in the country. Most of them regulate on waste management and disposal, and the effects of operations of the business to communities. The cookie business does not have a lot of waste thereby may be considered as environmental friendly. The only concern may be on packaging as some competitors have been forced to pay high penalties as a result of packing in plastic paper bags that are not recyclable. Environmental factors such as weather may not be of critical concern unless the business fails on its environmental sustainability role, and considered as a pollutant (Carysforth, and Neild, 2004).
REFERENCE LIST.
Carter, S., MacDonald, N. J., & Cheng, D. C. B. (1997). Basic finance for marketers. Rome: Food and Agriculture Organization of the United Nations.
Carysforth, C., & Neild, M. (2004). Business. Oxford: Heinemann.
Creelman, J., & Smart, A. (2013). Risk-based performance management: Integrating strategy and risk management.
Murray-Webster, R., & Williams, G. (2010). Management of risk: Guidance for practitioners. Norwich, England: The Stationery Office.
Rennie, M. (2008). Exercises in elementary office practice. London: Heinemann Educational.
