Question

How have global factors come into play

Answer 1

The global factors have their impact n almost every aspect of the organization’s operation that might include the availability of the raw material, reliability of the supply chain, the supply of labor, wage demand, expectations of the workers, government rules and regulations, demand of the customers. Each dimension of the organizational operation is affected by global factors.

The global factors include legal issues, demographics of the customers, cultural and social issues, and factors, technology, political situation, natural environment.

The legal frameworks of any country and the different countries have a direct impact on the operations of the organization. When the company thinks of initiating any business in any country, it must have to adhere to the local legal rules and regulations.

Cultural and social factors are the main concerns as they have a direct and larger impact on the overall consumption pattern of the country. The cultural values, customs, and so on have to be analyzed and addressed by the producers.

Political stability and the relationship with the home country also decide how comfortable operations a company can have in another country.

Technology plays a significant role. If technological advancement is quite high in the countries, the organizations will have to keep with its pace to sustain itself.

Demographic factors also have their bearing on the operations of the organization as this decides the type of demand the customers will ask for.