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Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to ensure ethical practices in a global environment. - HSC - SSCE Business Studies - Question 27 - 2007 - Paper 1
Question 27
Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to ensure ethical practices... show full transcript
Worked Solution & Example Answer:Outline the external sources of change for a business to expand internationally, and critically analyse the strategies a business may use to ensure ethical practices in a global environment. - HSC - SSCE Business Studies - Question 27 - 2007 - Paper 1
Step 1
Outline the external sources of change for a business to expand internationally
Answer
External sources of change for a business seeking international expansion include:
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Economic Factors: Fluctuations in currency exchange rates, inflation, and economic growth in potential markets can greatly influence the decision to expand. Businesses must assess the economic stability and growth potential of target countries.
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Political and Legal Factors: Government policies, trade agreements, and political stability play a critical role. Understanding regulations, tariffs, and the political landscape is vital to strategic planning.
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Technological Changes: Advances in technology facilitate global communication and logistics. Companies must stay informed about technological trends to optimize operations and reach new markets effectively.
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Socio-Cultural Factors: Variations in cultural norms and consumer preferences necessitate a tailored approach to marketing and operations. Analyzing demographic trends can provide insights into consumer behavior in different regions.
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Competitive Environment: Researching local and international competitors can inform strategic decisions regarding pricing, marketing, and product offerings. Understanding competitive dynamics is crucial for market entry strategies.
Step 2
Critically analyse the strategies a business may use to ensure ethical practices in a global environment
Answer
To ensure ethical practices while expanding internationally, businesses can implement the following strategies:
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Establishing a Code of Ethics: Developing a comprehensive code of ethics that governs all operations globally ensures that employees understand the company’s values and expectations regarding ethical conduct.
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Training and Awareness Programs: Regular training programs focused on ethical practices and cultural sensitivity can prepare employees to navigate ethical dilemmas in diverse environments.
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Stakeholder Engagement: Involving stakeholders, including local communities and international regulatory bodies, in decision-making processes ensures that business practices are aligned with local values and ethical standards.
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Regular Audits and Compliance Checks: Conducting regular audits to evaluate compliance with ethical standards helps identify areas for improvement and ensures accountability at all levels of the organization.
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Sustainability Initiatives: Implementing environmentally friendly practices and contributing to community development can enhance a company's ethical standing and strengthen its reputation globally.
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Transparency and Reporting: Maintaining a transparent approach to business operations, including clear reporting on ethical practices and outcomes, builds trust and credibility with both customers and stakeholders.