Requirement for General Environmental Scanning in International Business

Content:

1. What You Should Know About International Business Environment
2. Understanding Success & Failure In International Business Environment
3. International Business Environment and It’s Changing Nature
4. Competitive Factors That Influence International Business Environment
5. Requirement for General Environmental Scanning in International Business
6. Systemizing the Search for Int Business Opportunities
7. Key Factors That Drive The Competitive Environment

Scanning the business environment is an activity that needs to be conducted on a continual basis by all international businesses. The reasons are diverse, but particularly important is the need to be aware of the threat of competition and the attractiveness of specific business opportunities.

The benefit of operating in many economies is that you avoid downturns in demand in the home market. Manage the damaging changes in the economic cycle in your existing portfolio of businesses. Achieve smooth production flows and aim for steady sales throughout the year.

Environmental Scanning in International Business

The reasons for scanning the business environment may include the following four factors:

1. The need to avoid saturation of existing markets: 

• further expansion in your present market may be expensive or impossible; 
• it may not be possible to adapt the technology used by your company or to develop it to suit the needs of existing markets; 
• the introduction of foreign management techniques following takeovers or mergers could place pressure on senior management to seek additional business development opportunities.

2. Being responsive to market changes: 

• sifting opportunities to identify areas of future business activity; 
• devising realistic plans for considering new market opportunities; 
• allowing existing customers’ expansion to lead your activities.

3. Extending the sources of supply:

• extending procurement into a new supply chain; 
• searching for higher quality/reliability amongst your network of suppliers; 
• purchasing suppliers to integrate into your business.

4. Extending the sources of capital, labor and technology: 

• introducing cost reductions and effectiveness; 
• accessing cheaper capital; 
• utilizing flexible and cost-effective personnel; 
• searching for diverse sources of finance; 
• spreading risk; 
• enhancing the employee relations climate; 
• implementing new technological applications; 
• setting up new communications networks.

Continue at: Systemizing the Search for Int Business Opportunities