Business – 1.1 Enterprise – The nature of business activity | e-Consult
1.1 Enterprise – The nature of business activity (1 questions)
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Answer:
- Market research scope: A local business relies on community knowledge, informal feedback and limited demographic data, whereas an international business must conduct extensive cross‑cultural market research, analyse foreign consumer behaviour, and consider multiple regulatory environments.
- Risk assessment: Risks for a local business are mainly economic cycles and local competition. An international business faces currency fluctuations, political instability, trade barriers, and compliance with diverse legal systems, requiring sophisticated risk‑management tools.
- Resource allocation: Local firms allocate resources within a single geographic area, often with a lean structure. International firms must decide how to allocate capital across subsidiaries, balance global branding with local adaptation, and manage complex supply‑chain networks.
- Strategic objectives: The primary goal of a local business is often community reputation and market share within the town. An international business aims for global market penetration, economies of scale, and brand consistency while tailoring products to regional preferences.