Particularly for the last ten years, technology has worked wonders. Various products of suppliers such as fresh fruits and vegetables are directly stored in the retail stores of the company. International environment refers to the surrounding where the international managers have to deal with a number of factors which include political, social, cultural, technological, environment and many other factors. Atharva Institute of Management StudiesINTERNATIONAL BUSINESS ENVIRONMENT AND PEST FACTORS Presented by :- RITESH TILAK MMS-A ( FINANCE) ROLL NO. Customers make purchase decision for various grocery items by comparing the price charged by various retail organizations. Retrieved 25 December 2019, from, Competitive Forces Affecting Business Environment - Discussed!. September 23, 2019. Business environment is therefore, the total of all external forces, which affect the organization and the business operations (Kotler &Armstrong 2004). Also, customer preferences changes at regular pace which influences the working of business firms (Seidel, 2019). International Business and factors that impact it . Thus, international business refers to cross border transactions of goods and services taking place between two or more countries. Competitive rivalry also pressurizes business firms to offer quality produce to customers at reasonable prices. Rising awareness among customers about environment sustainability has influenced various operations of retail firms. PEST factors in International Business 1. Customers have gained lot of importance in 21st century. These include economic, social, legal, technological and political factors. According to the International Energy Agency (IEA, 2011), the “BRICS” economies, which refer to Brazil, Russia, India, China and South Africa as … Woolworths also had developed its online portal to provide for online and convenient shopping experience to customers. Hence, they have both positive and negative impacts on the countries due to cross border businesses. Innovation capability is also one of the important factor that affects the operations of business organization. 35 2. The dominant features of technology have been made in the last three decades. Within the company, there are numerous criteria need to be taken int… Team based structures helps in free flow of information (Johnson, 2019). Effective and hardworking staff members helps in achieving competitive position in the industry whereas lack of skilled staff members reduces the profitability of business organization and may lead to closure of business (Internal & External Environmental Factors, 2019). Various external environment factors directly affecting the working of large MNCs include social conditions of economy, political and legal factors, etc. These forces include customers, creditors, competitors, government, socio-cultural organizations, and political parties, national and international organiz… Thus, effective political environment of business influences the growth of business firm (Shaw, 2018). This further affected the overall sales growth of Woolworths. Also, lowering rate of corruption in Australia will further increase the profitability of Woolworths. It refers to all the cross border transactions of goods, capital, technology, managerial knowledge, and services that take place between two or more countries. Also, Woolworths has to comply with various employee related regulations and fair work act policies to keep its employee satisfied with various work policies ("Employment & labour law in Australia | Lexology", 2019). Also, Social environment and culture such as customs, lifestyles and values differs from country to country which further directly impacts the international business. Many economic factors that directly affect the international business includes among others: The social environment and culture, like the peoples' customs, lifestyles have a direct impact on international business. (2019). Various political factors affect the international factors. Funds are the base for growth and competitive position in the industry. Corporate social responsibility initiatives of the company also targeted to fulfill the social needs of consumers in reagard to the sustainable demands. However, larger competition in the market signified huge demand for the product in the market. Along with this, Woolworths is known for providing superior services to customers at reasonable prices. Presence of large number of retail firms operating in Australia and other countries increases the bargaining power of customers. SWOT analysis refers to the framework that involves analysis of the competitive position of the business firm which further is useful in conducting strategic planning for business firm. Various factors influence the profitability of business firm. Lack of political stability in the country directly impacts the operations of business firm. Business firms in current times cannot successfully run a business without fulfillment of needs and wants of customers. Factors Affecting Business Performance Internal Innovation in the technology and the response of employees is considered of the most important factor affecting the business environment. The Coca-Cola Company and Subsidiaries have many environmental factors that affect their global and domestic marketing decisions. 238. often have an impact on the businesses. Environmental Factors Affecting International Business — 10 Comments Susan on November 29, 2018 at 9:09 am said: Loes, The impact to the environment is something to be considered in everything we do today. In addition, many international lending agencies could affect legal culture and working policies. Assignmenthelp4me.com is a prominent and proficient assistance provider to the students of Australia, Canada, India, New Zealand, the UK, the USA, who keenly keep on searching for online writing help and guidance regarding assignment help and academic papers. Organization that has valuable, rare and imitable resources must manage and organize its resources to achieve competitive advantage and to exploit all the available resources. Woolies new value proposition - supermarket axes Cheap Cheap - AdNews. This further influences the business organization to bring some innovation and develop products according to the needs of customers ("Competitive Forces Affecting Business Environment", 2019). Environment factors such as weather, climate change, temperature etc. The availability of physical facilities limits the scope and prospects of business.Technology refers to the knowledge of how to do things. Following is the detail discussion of various micro environment factors of business: Customers are important micro environment factor of business that impacts the operations of business organization. External analysis includes analysis of opportunities and threats of business organization which are external to business firm. Case Study. Substitute products refers to goods that can be substituted in place of other products and services. Woolworths has adopted number of environment friendly business practices with the aim to reduce negative impacts on environment. 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