ENVIRONMENT MANAGEMENT TRADE
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ENVIRONMENT MANAGEMENT TRADE
NAME : KUNDAN TIWARIPROGRAME : M.B.A
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contents
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ENVIRONMENT
• BusinessActivities that require the movement of resources , goods, services , and skills
• TradeThe import or export of good and services to consumers.
• InvestmentInvestment of resources in business activities outside a firm’s home.
• ManagementThe performance of a management functions.
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STRSTEGY FORMULA
• Expand salesWhen markets are saturated, should go over areas to increase sales and profit.
• Acquire resourceresources may be more readily available and less costly in other place/state/country.
• Diversify sources of sales and suppliesDifferent Business cycle between states/placesMay avoid impact of price swings or shortages.
• Avoid tariff
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CHANGE IN ENVIRONMENT
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DISTANCE AND CULTURAL BARRIERS
• Distance and cultural barrier also closed the environment.
– Distance close the markets as far as some managers were concerned.
– Communication could be difficult.
– Languages and cultures were different.
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EFFECTS OF FREE TRADE ON MANAGERS
• Declining barriers have opened great opportunity for managers.
– Manager can not only sell goods and services but also buy resources and components.
• Managers now face a more dynamic exciting job due to competition.
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Task Environment
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Suppliers and Distributers
• Managers buy products from suppliers and supply themselves.
– Key is to keep quality high and costs low.
• Outsourcing : firm buy inputs from throughout the range.
• Distributors : each firm often has a unique system of distribution
– Manager must identify all the issues.
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Customer And Competitors
• Formerly distinct national markets are merging into a huge market.
– True for both consumer and business goods
– Create large opportunities
• Still, Manager often must customize product to fit the culture
– McDonald’s sells a local soft drink (in Brazil)
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FORCES ON GENARAL ENVIRONMENT
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