Contents

Introduction .................................................................................................................................................. 3
Internal factors.............................................................................................................................................. 3
Strategic risks ............................................................................................................................................ 3
Innovation ................................................................................................................................................. 4
Financial .................................................................................................................................................... 4
External factor............................................................................................................................................... 4
Economy ................................................................................................................................................... 4
Weather ........................................................................................................................................................ 4
Customer................................................................................................................................................... 4
Globalization from PEST Perspectives .......................................................................................................... 5
Globalization ............................................................................................................................................. 5
PEST Perspectives ......................................................................................................................................... 5
POLITICAL .................................................................................................................................................. 6
ECONOMY ................................................................................................................................................. 6
Social/Culture............................................................................................................................................ 7
Technological ............................................................................................................................................ 7
Strategies for a firm to compete in the market ............................................................................................ 9
Advertising ................................................................................................................................................ 9
Offer something that the opposition doesn't. .......................................................................................... 9
Estimating ............................................................................................................................................... 10
Deals and promoting................................................................................................................................... 10
Quality and administration ......................................................................................................................... 10
Conclusion ................................................................................................................................................... 11
References .................................................................................................................................................. 12

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Abstract
Globalization of business is acquiring prepared contenders from the formed nations into the
developing markets of the Third World. globalization has fundamentally amplified its impact
crossing the limit between nations. This wonder shows that globalization does not just produce a
significant impact on financial circle additionally on political field. It then quickly considers the
suggestions for financial development and the suggestions for objectives not measured by GDP
equity and the earth. The conclusion is that globalization is not the essential obstruction to
endeavours to address such concerns.

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Introduction

Everyday our business sector is changing the way it is. Many new things are produced and
developed and in a matter of about a few seconds among them, (Contributor, 2011).Businesses are
also influenced by the environment that they’re in and all the situational variables that decide
circumstances from every day. (Donald R. Cooper, 2008)Businesses need to keep a check and
constantly analyse the environment within which they run their business and within which the
market lays.

There are two types of environmental factors: internal factors and external factors

Internal factors
Strategic risks
These influence your business capacity to achieve the objectives in the marketable strategy. They
could be due to the impacts of changes in technological evolution or customer demand. These
factors could pose as threats as they can alter how customers perceive your product. Based on
these, customers might think a product is overpriced, dull and outdated.

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Innovation
Your business needs innovation in order to keep up with competitors. It is vital to stretch one stage
beyond. Development could come through promoting. It could likewise be through limited time
activities in the showcasing arrangement, staff preparing, and welfare. Lack of innovation can
lead to downfall of the company4

Financial
The financial risks depend on the financial structure of your business. It is additionally reliant your
business transactions and the financial systems. For example, changes in interest rates or being
overly reliant on one customer could affect business.

External factor
Economy
The worldwide economy is one of the greatest outside components that will, sooner or later,
influence your business. (Ray, 2010) Market changes in view of governmental issues,
psychological warfare assaults, wars and cash cheapening in the end stream down to most business
ventures.

Weather
Companies affected by the weather have to make operational decisions based on forecasts of what
may happen. For example, research reveals thresholds in outdoor temperature, above which the
demand for soft drinks rises sharply. If retailers are aware of predicted temperature changes, they
can prepare to meet this demand by purchasing more drinks in advance

When a company’s success depends on whether it will rain or shine, it requires greater confidence
in the decisions it makes and in the impact of weather predictions upon those decisions

Customer
Your target customer base may change suddenly or slowly over a period of time. The changing
makeup of your competition can affect your business example if you cater to a more upwardly
mobile, family-oriented customer base. Cultural implications of a changing neighbourhood may
affect your business negatively or positively depending on your ability to meet the needs of
changing demographics

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Globalization from PEST Perspectives

Globalization
Globalization is not a new concept. In past people use to travel to other places for gaining control
on others lands, for finding out the better living style. (Akram, 2011).Globalization is a procedure
of communication and joining among the general population, organizations, and legislatures of
various countries

PEST Perspectives

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POLITICAL
The political dimension is a newer feature of the globalization debate, as over the last 30 years
there has been a growth in the effect and power of international and regional institutions
Benefits
aid and support
globalization in politics can have access to international aid and support. It contributes to world
peace. It reduces risk of invasions, more systems to big controls and limitation to nationalism
more influence internationally.
globalization will have more influence such as Smaller countries can work together and gain more
influence internationally
Cons
supranational organizations
Big countries can shape decisions in supranational organizations. This can be a nightmare for
smaller countries
Coordination
Sometimes coordination can be fell apart. Coordination is difficult and expensive that is why it is
creating an obstacle in development.

ECONOMY
Economic globalization echoes the views of thinkers in which states lose importance and the world
becomes a single global market of individual consumers. (Naylor, 1999)
Benefits
Increase standard of leaving
Economic globalization gives Government of developing countries access to outside loaning. At
the point when these assets are utilized on framework including streets, medicinal services,
training, and social administrations, the way of life in the nation increments.
Access to New Markets
Globalization leads to freer trade between nations. This is one of its biggest advantages to develop
countries, the growth this generates allows companies to develop new technologies and produce
new products and services.

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Cons
struggle to compete
some countries struggle to compete with other developing countries. This drawback can be very
dangerous for other low standard countries.
Extractive behavior
Some foreign companies and investors have extractive behavior so it is very complicated for the
company to trade or deal with these circumstances. It can also lead to crisis.

Social/Culture
Globalization has many benefits and detriment to the culture in the developing countries. Many
emerging countries cultures has been changed through globalization. (Naylor, 1999)
Benefits
Better understanding
Because of globalization we have Better understanding of foreign values and attitudes. Less
stereotypes and misconceptions about other people and cultures
Access to Information
Due to important tools of globalization like television, radio, satellite and internet, it is possible
today to know what is happening in any countries such as, America, Japan and Australia.
Cons
Culture differences
Globalization in culture can have a danger of cultural homogenization.
Distinct features
Some small cultures may lose their distinct features. And through this Dangerous or violent ideals
can spread faster

Technological
Technology was necessary to enable globalization and this technology emerged from developed
countries. It changed the economic relationship between countries because it made knowledge an
increasingly important component in the production of goods and services. (Naylor, 1999)

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Benefits
(McLuhan, 1980) stated that, “the rise of communication technologies would culminate in the
creation of a “global village”, one capable of enhancing initial understanding between people and
forging new communications.”
Media, like society has become greatly diverse therefore offering a variety of choice to individuals
worldwide than ever before. Consumers are in control and also have a vast choice in their media
consumption.
Cons
Technology makes us vulnerable. We have become so reliant on on technology through online
shopping, online banking, and data storage that we are more likely to have our information stolen
so that we could be financially decimated within a short period of time.
Another disadvantage of both technology and media is the flow of inappropriate content to certain
age groups. With easy access to television and the internet, young children and teenagers are
exposed to inappropriate content such as pornography, drug use, violence and criminal activities.

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Strategies for a firm to compete in the market

Business techniques point of interest moves made to give worth to clients and addition an upper
hand by misusing centre abilities in particular, singular item or administration markets. Business-
level system is worried with a company's position in an industry, in respect to contenders and to
the five strengths of rivalry. (Donald R. Cooper, 2008)

Advertising
Advertising methodologies are utilized with great aim to expose true endeavour’s that serve the
general population interest. (William G. Nickels, 1987)Significant oil organizations took out costly
daily paper advertisements amid the oil and gas deficiencies to safeguard their high benefits—
contending that they were required either to fund future vitality development or to compensate for
discouraged benefits previously. (Strickland, 1978)

Offer something that the opposition doesn't.

There is a little tool shop directly down the road from a Home Depot. They are dependably busy.
The reason is on account of they made sense of what they can offer that Home Depot doesn't.
What's more, the Home Depot store will really allude business to them when they don't stock the
thing a client needs.

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Estimating
Statistical surveying ought to give proof of your rivals' costs and the value clients will pay for your
items and administrations. It is indispensable to set your costs at a level that guarantees your
business stays productive yet keeps your clients from looking somewhere else.

Estimating procedures can include:

• discounting - briefly bringing down costs or offering two at the cost of one

• image estimating - where the apparent picture of the item exceeds the real cost, for
example, in extravagance merchandise.

Deals and promoting

A decent deals group and a strong promoting arrangement are amazing approaches to convey the
advantages of your items and administrations to clients. (Strickland, 1978)Organizations develop
by securing new clients, and successful deals and promoting techniques can help you succeed.

Quality and administration

Despite the fact that numerous clients will see an item's cost as the vital element in choosing where
to spend their money, in the long haul a business can profit more from making great quality items
and offering fabulous client administration. (William G. Nickels, 1987)

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Conclusion
This chapter explains generic business-level strategies that executives select to keep their firms
competitive.the best growth strategies are well-planned because they provide the clearest road
maps that will lead a company to higher performance outcomes more quickly because of the
processes and systems that are set in action to support them. (Strickland, 1978)

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References
Akram, M., 2011. International Journal of Business and Social Science. Globalization and its
Impacts on the World Economic Development, p. 297.
Contributor, 2011. pestleanalysis.com/pestle-analysis-business-environmental-analysis. [Online]
Available at: http://pestleanalysis.com/pestle-analysis-business-environmental-analysis/
Ray, L., 2010. smallbusiness.chron. [Online]
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Using strategies to compete | Queensland Government. 2016. Using strategies to compete |
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Shep Hyken. 2016. Six Strategies to Compete In Business | Shep Hyken. [ONLINE] Available
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William G. Nickels, J. M. M. S. M., 1987. Understanding Business. 5th ed. New York: Irwin/McGraw-Hill.

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Naylor, J., 1999. Management. 1st ed. London: Financial Times .

Donald R. Cooper, P. S., 2008. Introduction to Business . In: Business Research Methods. New York:
McGraw-Hill Companies, pp. 2-18.

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