The commercialized world demands more business involvement in any sphere because of well-developed technological advancements that quickly come into use. This gives a ground for companies to penetrate different markets worldwide. However, some organizations need to take a chance to expand due to economic, political, or other concerns. This article will guide a reader through domestic and international business basics, provide examples, give a rationale for expansion, and revise ethical concerns.
The external and internal business environment of functioning provides for the formation of corresponding divisions of companies. The internal business environment of the company is characterized by: the volume of manufactured and sold products, the number of outlets, their strategic location, the level of qualification of full-time employees, and staffing (Dunung, 2020). In addition, it accounts for the relationships within the team and the satisfaction of the company’s employees with their position. Some researchers say that the effective functioning of all company components depends on the factors that affect it from the outside – the external business environment (De Kluyver & Pearce, 2021; Dunung, 2020). It is characterized by the following aspects: frequent changes in the exchange rate, fashion trends in the market, and consumer demand for a particular product.
For example, a prominent example of a domestic company in the U.S. is Verizon – a major telecommunication conglomerate. In terms of internal business organization, the company guarantees stable monthly payments to its employees, holds training to increase employees’ level of knowledge, and provides a social package. Verizon’s HR team also creates team-building events to boost organizational spirit and encourage its workers to work more efficiently to promote the company. Hence, by meeting the criteria of the domestic business environment, Verizon remains a top telecommunication company in the state’s market. Meanwhile, Coca-Cola is an international company primarily concentrating on outer development. Therefore, it is mainly observable that the company’s heads are focused on opening new factories, selling its products to new retailers, and penetrating yet undiscovered markets.
Business expansion is the goal of numerous domestic companies because it entails several benefits. When a company’s market can expand, its brand visibility also increases. Consequently, the growing presence will also contribute to increasing opportunities in the future by raising brand awareness. What is more, expanding businesses are protected from changing business trends (De Kluyver & Pearce, 2021). If a product is not widespread due to the evolving trends in one market, it may be in high demand in another, which allows companies to move their stocks.
When entering a new market, an organization must consider a few ethical considerations. For example, manufacturers should ensure they comply with the pollution and environmental concerns of the country they enter (Moriarty, 2022). If company A penetrates a market with increased ecological awareness, it should ensure its factories do not produce exhaust fumes or waste (Madden, 2021). The other ethical issue is human rights laws, which define whether a company helps eliminate or spread disparities. For instance, if an organization enters the American market, it must guarantee to sell services or products targeted at combating inequality.
In conclusion, domestic and international business environments define the company’s functioning at all levels. The former determines the interrelations and atmosphere within the organization, while the latter helps establish external connections with foreign markets. Market expansion is beneficial since it increases the brand’s visibility and protects its assets. Finally, a manufacturer must consider ecological concerns and human rights laws when entering a new market.
References
De Kluyver, C., & Pearce, J. (2021). Global business strategy. Business Expert Press.
Dunung, S. (2020). Global business management (1st Ed.). Flat World Publishing.
Madden, H. (2021). Aspects of going global: How to make international business expansion a success. Independently Published.
Moriarty, J. (2022). Business ethics: A contemporary introduction. Routledge.