Political Trends
Politics influences business decisions to expand to the global market as they affect profitability and sustainability. As iShoes seeks to expand operations beyond the United States, it will have to explore political conditions and regulations in various international markets before delving into them. Businesses need to identify and evaluate political risk and its impact on the business environment (Costa & Figueira 64). In such an instance, iShoes will seek diplomatic help to establish political moods in various international markets and their probable impact on the company’s desire to reach technology-reliant companies. Political risk also relates to businesses’ ability to transfer resources between borders, transfer of profits regulations, the relationship between countries and international businesses, and intergovernmental relations between the origin country and the host country or company of interest (Costa & Figueira 66). Due to the probable impact of politics on iShoes’ decision to go global, the company carries out a thorough evaluation of political risks in various international markets and, through diplomatic help, establishes if governments of the various countries of interest relate well with international businesses. Outcomes from the investigation help the company identify various markets where this product will sell and support business viability. Additionally, through this political analysis, iShoes establishes if it will yield value for the product depending on the market’s nature(s).
Legal and Regulatory Issues
Legal and regulatory issues influence business prosperity, especially for international companies. As iShoes seeks to reach the international tech-reliant client network, it needs to explore legal and regulatory issues at all levels, including international, national, state, and regional and their likely impact on marketing activities. Examples of legal and regulatory issues affecting business decisions and prosperity include laws, property rights, and safety regulations (Ferreira et al. 286). For instance, if iShoes expands to any market, whether local, national, or international, changes to property rights, safety regulations, and general business laws will change how the company operates, its product distribution and reach, and profit margins. The company considers the likelihood of such changes and their probable impact on its operations. Additional regulatory and legal issues affecting company operations include civil law, common law, and payoffs, among others (Ferreira et al. 286). Such laws impact business trust in governments and economic development patterns. For iShoes, the company profiles different countries that it seeks to expand to and sort their differences in relation to its ability to adapt to these countries’ laws and regulations. The sorting and profiling help determine those that offer fair market conditions, allow businesses to thrive, and limit company operations interference. The company will need to evaluate legal and regulatory issues as they impact product pricing and production and compensation policies.
Technological Advancements
Technology impacts business operations and interaction with customers. At iShoes, technology changes the company’s perspective of the market given that it produces a product that aligns with technology advancements. Technology changes a business’ interaction with cost-cutting, customer-service quality, and the level of innovation instituted in products for various markets (Nikoloski 303). With various countries adopting state-of-the-art technology to improve business efficiency, iShoes has moved with this wave to establish a functional relationship with its customers. For instance, the company seeks to establish in countries with a level of technology adoption. Whereas every country supports technological advancement, the new product may not sell uniformly in all countries, with first world countries the most preferred market. However, the company understands the existence of tech-savvy clients in developing countries. As a result, it plans to carry out viability and feasibility analyses to establish customer needs, preferences, access to information, and purchase decisions in various countries and these factors’ impact on iShoes. Businesses should also be wary of technology and its linkage to overall business strategy and determine an investment’s appropriateness (Nikoloski 304). Our company believes that a technological culture impacts business practices such as product differentiation, alliance development, growth promotion, innovation, and cost control. For this reason, the company develops strategic business strategies aligning to technology levels in various regional, state, national, and international markets.
Sociocultural Trends
Businesses must respond to sociocultural trends as they impact business perspectives. General sociocultural factors influencing firms and industries include culture, customer preferences, and society’s attitude towards foreign goods (Masovic 1). With the desire to produce iShoes, the company understands that customers from various regions and nationalities accept technological goods depending on the level of trust or distrust of a firm or industry and the support afforded to foreign business by governments. As a result, social attitudes related to political issues usually emerge as influential sociocultural trends that impact business performance. Masovic also added that cultural factors influence social trends and change customer attitude and beliefs, attitude towards time, attitude towards change, and attitude towards leisure (2). As these issues affect sociocultural trends depending on region or country, iShoes seeks to change its interaction with customers by customizing communication methods, customer connection strategies, negotiation approaches, and promotional methods. Countries that share cultures, especially those practicing or supporting the western-style culture, make it easy for iShoes to operate since the product originates from the United States, a western-style culture. However, for the company to operate in regions, states and countries exhibiting different customer preferences and attitudes towards foreign countries, it investigates these attitudes and preferences and changes its business practices and objectives to fit their sociocultural trends.
Works Cited
Costa, LPdS, and A. C. R. Figueira. “Political risk and internationalization of enterprises: A
literature review.” Cadernos EBAPE 15 (2017): 63-87.
Ferreira, Manuel Portugal, et al. “Is the international business environment the actual context for
international business research?” Revista de Administração de Empresas 49.3 (2009): 282-294.
Masovic, Azemina. “Socio-cultural factors and their impact on the performance of multinational
companies.” Ecoforum Journal 7.1 (2018).
Nikoloski, Krume. “The role of information technology in the business sector.” International
Journal of Science and Research (IJSR) 3.12 (2014).
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