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1.2.Cultureasanelementofacompany’sinternationalenvironment
Internationalenvironmentofacompany
Theenvironmentofentitiesoperatingonforeignmarketsiscomposedof
diverseelementswhichcanbedividedintothefactorsremainingunder
companycontrol,andtheelementsbeyondsuchacontrol.Thestructureofthe
internationalenvironmentisshowninFigure1.1.
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Legalandpoliticalfactors
Technologicalfactors
Economicclimate
Domesticexternalenvironment
Foreignexternalenvironment
ConditionsofcountryB
Promotion
ConditionsofcountryA
Product
Legalandpoliticalfactors
Dependentvariables
Naturalfactors
Promotion
Price
Structureofcompetition
Socio-culturalfactors
Economicfactors
Fig.1.1.Structureoftheinternationalenvironment
Source:ownelaborationbasedon[Cateora,Ghauri2000,p.9].
Thefirstgroupoffactorsconstitutingtheenvironmentincludesdependent
variableswhichmakeupthemarketing-mix:product,promotion,priceand
distribution3.Fromtheenterpriseviewpointtheyarecontrolledvariables
dependent,amongothers,oncompanyassets,thechosenbusinessstrategyand
3Suchaninterpretationofvariablesimposesthemarketingviewpointontheproblem
oftheinternationalenvironment.However,itshouldbepointedoutthattakingabroadap-
proach,thelistedinstrumentsreachbeyondmarketingandencompassalltheareasofcom-
panybusinessactivity.