Wednesday, December 26, 2012

Complexity of the Global Environment:

Complexity of the Global Environment:
Global strategic planning is more complex than such purely domestic planning.

There are at least five factors that contribute to this increase in complexity:

  1. Global face multiple political, economic, legal, social and cultural environments as well as various rates of changes within each of them.
  2. Interactions between the national and foreign environments are complex because of national sovereignty issues and widely differing economic and social conditions.
  3. Geographic separation, cultural and national differences and variations in business practices all tend to make communication and control efforts between headquarters and the overseas affiliates difficult. This will also results in the Complexity of the Global Environment:
  4. Global face extreme competition because of differences in industry structures.
  5. Global are restricted i their selection of competitive strategies by various regional blocs and economic integrations.


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