The Business Environment, Research Paper Example

Businesses play an important role in supporting and sustaining economic development and growth in many communities. Businesses support commerce and the exchange of goods and services in a variety of areas that also stimulate the economy in local, regional, national, and international settings. Businesses typically operate under a variety of basic concepts and principles which are important in influencing economic performance and sustainability. The world of business is vast and competitive, and requires knowledgeable and skilled professionals to create a thriving and sustainable concept and framework.

Both for profit and nonprofit organizations exist in all communities, and the ability of these two types of organizations to coexist and to work cooperatively is essential for continuous economic growth and change. For profit organizations serve fill a variety of roles that are required to keep the economy going and as stable as possible through the purchase of goods and services. For profit organizations are required to pay taxes on their earnings and profits on an annual basis or even more frequently, while nonprofit organizations have a tax exempt status, and typically work in a variety of industries to provide support and to give back to communities and their residents in different ways. Both types of organizations offer a variety of important benefits to community members through outreach, promotion, and the promise of an improved life through a given product or service.

Fiscal and monetary policies represent a means of approaching changes as they influence a given economy in different ways. These policies possess a tendency to become less stringent when economies are on the upswing, and more restrictive when economies are in a decline (Leigh and Stehn, 2009). Therefore, it is important to recognize patterns in fiscal and monetary policy, such as a more aggressive approach, to ensure that there are sufficient alternatives to reduce the damage that is experienced from a period of economic decline (Leigh and Stehn, 2009). However, monetary policy is more effective in counteracting some of these circumstances than fiscal policy, which may not be effective at the earliest stages of the decline (Leigh and Stehn, 2009).

Establishing a global product strategy in an organization with a household name may be easier said than done, but on name recognition and level of quality alone, Apple stands alone. Globalizing the iPhone and its continuing generations was no small feat; however, Apple had already established itself as a world leader and innovator in the technology sector (Arvidson). The product’s quality and expanded technological presence speak for themselves; however, the company’s ability to establish and retain an aggressive yet stable pricing structure for the iPhone has perhaps been its most successful alternative (Arvidson).In addition, by eventually expanding carrier service beyond the AT&T network, more and more carriers have jumped on the bandwagon to take advantage of customers interested in purchasing an iPhone for the first time or multiple phone owners (Daye and VanAuken, 2008). Furthermore, the phone’s global presence is also solidified with Apple’s choice to expand sales through additional retailers to maximize interest and sales performance (Daye and VanAuken, 2008). These practices have been largely effective in the success of the iPhone and each subsequent generation over the past several years (Daye and VanAuken, 2008).

Establishing an effective approach to globalizing a product or service while exercising social responsibility requires an effective understanding of the international marketplace and the prospective organization’s role in preparing to take a product or service to an international level. For example, Bayer has been successful in expanding a global product strategy based upon its reputation, commitment to safety and the environment, and innovation (Bayer, 2012). Many companies have followed suit with these basic principles and have demonstrated their value and strength on an international scale through these practices (Bayer, 2012). As one of the leading pharmaceutical organizations, Bayer has strived to be successful in its own right by developing formularies that promote positive health and wellbeing for patients facing a variety of health concerns (Bayer, 2012). The ability of a company such as Bayer to be successful in light of exposure to the increased risks of pharmaceutical drugs requires the company to maximize its core strengths in creating products for a global market that are safe and effective for all consumers (Bayer, 2012). Therefore, leading through a commitment to excellence and continuous growth is essential to expand knowledge and effective outcomes (Bayer, 2012). The company must convey a strong level of social responsibility to the consumer population through excellence in safety and labeling for each of its products (Bayer, 2012). Therefore, the company has taken the steps that are necessary to promote consumer confidence and loyalty for the foreseeable future (Bayer, 2012).

References

Arvidson, E. The product strategies for the iPhone. Retrieved from http://smallbusiness.chron.com/product-strategies-iphone-32460.html

Bayer (2012). Handling products responsibly on a global scale. Retrieved from http://www.bayer.com/en/position-on-global-product-strategy.aspx

Daye, D., and VanAuken, B. (2008). iPhone strategy: no longer a grey area. Retrieved from http://www.brandingstrategyinsider.com/2008/06/iphone-strategy.html

Leigh, D., and Stehn, S.J. (2009). Fiscal and monetary policy during downturns: evidence from the G7. Retrieved from http://www.imf.org/external/pubs/ft/wp/2009/wp0950.pdf