Essay Example on Maximizing Success in Uncontrollable Environments: Facebook Worst Company

Introduction

Facebook Worst Company is a company that deals in the manufacture and sell of electronics such as phones and laptops. It is to be based in the United States and would have various branches across the world.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Environment that will best suit the company for success

Usually, the external conditions of the environment under which a business is set-up are cannot be controlled or pre-determined by the business owners. Such environments revolve around the following aspects; the regions economy, the law and political dynamics, demographics, social aspects, competitors, global and technological dynamics (McCreary, 2019). Owners of any business ought to take these aspects into consideration before establishing any business lest it fails.

The economy plays a huge role in determining how a business is to be setup. Most economies tend to fluctuate rather frequently. Such economies are not suitable for the business. A constantly growing economy, on the other hand, creates an environment with low unemployment rates and higher income. Thus, the business is cushioned by the constant investments from the consumers.

How the government runs its operations and the policies and regulations it passes determine how successful a business will be. The stability of the government inspires confidence in setting up the business as it does away with the worries of having to close down in case of an instability or a coup (Reynolds and Hult, 2019).

The demographics of a region plays an essential role in determining whether or not to set up a business. For instance, in the case of a tech-company, it is key to consider what is the age of majority. This would help the company modify it products to meet the particular demands of its target consumers.

Social factors such as lifestyles and values determine whether or not a business shall be accepted in a particular environment. They are often subjective, and change from time to time. As such, it would be prudent to keep the business at par with the changes as they occur.

The type of technology that is already in existence within a particular region, and that which is expected determines the success or failure of a business. As such, Facebook Worst Company would have to bring up technology that is well-beyond what is in existence already.

Barriers that exist in the new environment

The foreign laws and regulations could hamper the ability to establish trade in the new region. Tax compliance has been key to preventing most start-up businesses from progressing. Further, coming up with the product prices could prove challenging. Also, fluctuation of currency rates can hamper profits-forecast and falsify projections or expectations. As effective communication is often at the heart of any global business, difficulties in communication as well as non-concurrence in culture can prove to be quite the barrier (Gitman and McDaniel, 2018)

How to overcome the barriers

While setting up in a foreign region, I would be prudent to adopt or change the name of the brand in order to fit in seamlessly. This would help in facilitating communication as well as culture. Further, constantly keeping an eye on the rates of exchange ought to be integral in order o beat the frequent currency fluctuations. Going ahead and signing contractual agreements demanding that some particular rates be adhered to during implementation of the contract can help solve this. on costing, it is crucial to conduct research on the prices of similar goods within the region, and to determine whether they favor your product or not. Finally, adopting an accounting strategy that serves to reduce costs, and as such, taxation costs would help overcome the issue on tax compliance (Landau, 2020).

References

Gitman, L. J., McDaniel, C., Shah, A., Reece, M., Koffel, L., Talsma, B., & Hyatt, J.C. (2018, September 18). Understanding the Business Environment. Retrieved from https://opentextbc.ca/businessopenstax/chapter/understanding-the-business-environment/

Landau, C. (2020, April 30). 8 Steps to Starting Your Own Business. Retrieved from https://articles.bplans.com/business-ideas/7-steps-to-starting-your-own-business/amp/

McCreary, M. (2019, December 25). The Complete, 12-Step Guide to Starting a Business. Retrieved from https://www.entrepreneur.com/article/297899

Reynolds, K., Hult, K. (2019, July 24). 11 Biggest Challenges of International Busines in 2017 Hult blog. Retrieved from https://www.hult.edu/blog/international-business-challenges/