Objective: Analyze the social, political and legal environments of businesses that operate globally; explain how businesses enter global markets; describe the effects of global environments on business planning; explain the role of leadership in operating in these environments; and discuss the necessity of global businesses to be good and law-abiding corporate citizens.
Introduction: This lesson examined social, legal, political, business and community environments that impact management decisions and activities.
Culture plays a significant role in global market entry and operations, as do the political and legal environments in countries that firms wish to enter or continue doing business in. Managers and leaders must be aware of these aspects of global business operations to be successful.
In this essay you will have an opportunity to explain what a global business must understand about a target country, how management decisions to enter that country are made, what legal issues the company may face, and how the company has a responsibility to be a good corporate citizen in the new target market.
Deliverable: The essay for this lesson is required to be a minimum of 750 words that clearly demonstrate your understanding of the activity. Essays should have a clear introduction, thesis statement and conclusion, written in APA format (APAstyle.org). A minimum of three sources must be cited in-text and in the Reference list.
Activity Details:
HB, Inc., of Kansas City, Missouri, is a successful international marketer of health and beauty products. To date, HB has not had a presence in the Middle East.
The HB Board of Directors wants HB to enter the Middle East market to remain a world leader in health and beauty products. Not only will HB sell to the new market, it would also like to open a manufacturing and distribution center in Saudi Arabia. HB's marketing department has been given the responsibility to develop a plan for moving into that market.
The initial step is to provide a brief examination of considerations that may impact HB's ability to successfully penetrate the Middle East market.
Answer the following questions, using what you have learned about this lesson's objective to summarize your responses.
-In light of the objectives for this essay, what social, political and legal factors must HB consider before proceeding with its market entry plan?
-The Board of Directors would like to know whether having a manufacturing and distribution presence In the Middle East would be more beneficial than retaining these operations in the United States and exporting its products. What risks does HB face in exporting? Will risks make any difference in leadership decisions or appointments for a potential Saudi Arabia manufacturing site?
-Are there general rules of social responsibility that apply to all global business operations and what special expectations should HB consider regarding social responsibility before deciding to do business in the Middle East?