Environmental effects on global business

Essay by loliver19University, Master'sA-, April 2004

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Successful management relies on one's ability to adapt and react to changes in the surrounding environment, especially today where there are many more environmental factors than in the years past. Globalization, technological advances and an ever-changing political landscape have increased the variables that managers must be aware of when dealing with situations. Managers should take into account all of the factors that could potentially effect their specific industry. Successful management in today's business atmosphere depends on being able to predict and correctly respond to unforeseen environmental issues that effect modern businesses.

In the past thirty years, there has been a tremendous increase of globalization of companies. The days of a company only effecting, or being affected by a local community or region are gone to the wayside; today, companies are affected by environmental concerns that business leaders of the past could not imagine. Even small companies rely on a global economy and are affected by environmental issues from around the world.

Employees, customers, suppliers, distributors and anyone else that deals with a particular business might be someone that lives and works in another country or region. One of the byproducts of this global community is that there are many more variables that can influence the decisions that a manager must make. A situation that may have gone unnoticed years ago could cripple an organization today. The economies of regions around the globe can affect companies all around the world. An example of a global effect created by one event is when the United States Army planned to field new black berets for all of its soldiers, but then refused to accept any berets that were wholly or partly made in China. A British company, Kangol Limited, had received part of the contract and agreed to deliver 618,000 black berets to...