Essay on Domestic and Global Business Environment
In any business’ environment, it is important to analyze the kind of clientele an entrepreneur is dealing with. Two different types of business environments exist depending on the extent of the service one provides. Domestic economic climate is different with global business climate in the sense that in the former one has to deal with clients from a single country whereas in the latter, the investor deals with clients from different countries. In order to come up with a strategy whereby each person is satisfied it is critical to understand that the two environments have to be treated differently. This ensures that each individual in a given business is satisfied with the kind of treatment s/he is receiving in the trade. However, this does not mean that domestic economic climate is lesser important than the global environment.
Domestic economic climate arises when an entrepreneur is dealing with a clientele that is based in a single country. In order for the investor to serve the interests of the people in that country well, it is important for the investor to study the trends of that people. The trends in people differ in terms of culture, social class, economic status, religion and many more. The entrepreneur should first try to understand what the people of that country are in order to set an environment that deals with all of them comfortably. This will ensure that the investor has a competitive edge in the market.
In global business, an entrepreneur ought to hire experts who will be responsible with analyzing the likes and dislikes of the people because the market region is diverse. The experts should strive to create an environment, which caters for the needs of all the people in the different countries that the investor is targeting. This goes a long way in ensuring that the people, although have diverse interests, their needs are met by the investor. This can only be achieved if the investor sets a global economic conditions that suits the needs of the majority in the society.
However, when setting a global economic conditions it is important to acknowledge that an investor cannot target the whole population in a country or in the globe. This calls for segmentation, whereby the investor targets a small group in the population that will be able to sustain him or her in the market. The chosen target group should be analyzed to ensure that it is capable of keeping a business afloat by giving it a competitive edge over the others. This is achieved by conducting research before a person starts a business.
Both domestic and global economic conditions need to be conducive for the investor as well as the customers. This is achievable if the investor follows all the laws in a given country to ensure that there is no conflict of interest. All undertakings in a trade should be legal in order to protect the consumer and the manufacturer. This creates an environment of trust between the entrepreneur and the customer because the customer feels protected. If one of the parties is not comfortable with the business environment, that business is doomed to fail because trust is the key to a economic success. Moreover, all the parties involved should ensure that they correct one another if a party thinks that a mistake is being done.