Chapter 5 Homework

1) How does environment analysis at the domestic level differ from global analysis?

Although there are many parallels between domestic and global analysis, there also some difference between them. The important of these differences mainly depend on the complexity of analysis required. In terms of the remote environment, a global entity need stimulate the asset multiple, ever-changing political, economic, legal, social environments and so on. At the domestic level, firms usually conduct an analysis in a relatively stable political, economic and legal environment. Besides, in the operation environment, geographic dispersion gives the competitors a greater challenge to global firms. Third, in the industry environment, the forces driving competition tend to more extreme for global firms. They may face a greater number of barriers such as limit of the market, prohibition form the government policy. So at this time, the firms need the global analysis rather than the domestic analysis.

2) Which factors complicate environmental analysis at the global level? Which factors are making such analysis easier?

As pointed before, the multiple political, economic, legal, social, and culture environments are faced by the global firms, which complicated the environment analysis process. It is so difficult for the firms to monitor the constant changes. Besides, the data before may not available and the reality of the available data may questionable.

3) Do you agree with the suggestion that soon all industries will need to evaluate global environment?

I agree with the suggestion that soon all industries will need to evaluate global environment due to the most of the businesses are become global. For example, the small clothing retailer may have the effect of the global business. The competitors may be sourcing their clothing form the