1) Why do businesses expand globally?
Business expand globally, because it tries to increase its market size to earn money. This is because there is a chance of grabbing that countries demand for products. As you expand into other countries profit can double or triple if you are doing well. However if it fails, it will have a huge set back in your company. Therefore people have to use the PEST analysis to decide if the company should move into a new country.
2) How can we analyse a market’s suitability for expansion?
We can analyse the markets’s suitability by using the PEST analyse. PEST analyse is an good way to decide if the company should move into the new country, because it evaluates all factors that can potentially affect the company. These factors include political, economic, social and technologic. Examples of political can be the minimum wages, quality standards and etc, economic examples are taxes, future increase of GDP, social examples are population increase or decrease, religion and technologic examples are power supply, machinery need and etc.
3) How does one determine if an action is ethical?
One can determine if an action is ethical, by looking at how they try to improve community, following laws and regulation. This means they are ethical, because the business does the least damage to the environment around them. Also thinking about the impact they will make is important, because they are not ignoring anything but the profit they earn. Example of ethical actions could be Adidas improving factories, so that it can follow fire safety requirements. This is an ethical act, because they are thinking about the workers safety and not just about the money and profit they earn.
4) To what extent do businesses behave ethically?
Business behave ethically to the point where there bad points over take the good points they have. An example would be paying workers less and not giving workers a voice, however the company is donating to a charity. In this example, the company would be unethically, because they are ignore government rules and workers voice while they help random charities. I think that following government rules and giving workers a voice is more important than donating to charity, so to this extent the business’s behaviour is unethically.
5) To what extent does globalisation create opportunities for business?
I think that opportunities for business, are when the market of an certain place is rising. And globalisation can create business opportunities, because these store can boost the economy by paying taxes. This is because when the population starts to earn more money, there can start spending on wants. Wants could be enjoy a better meal, buying a T.V or even some services. Also when a country starts to globalise, this will increase the opportunity for a business, because people are starting to experience new stuff. If the people like it, then you basically captured the market of that place. This can help a company earn lots of money, because everyone from that place eats at that restaurant. And they would not need to advertise for their company, because it is so famous. This can save lots of money, because some companies spend a lot of money on ads. For example, Honda spend 6.3 million dollars on adverting for their new car. 6.3 million dollars is a lot and if it is not spent on ads, it could be used to develop the company more.