Topic: Business Global vs. Domestic Enviornment Type: AssignmentSubject: BusinessPages: 2 , Double Spacing (275 words/page)Academic level: UndergraduateSources: 3Style: APA Order Description read the
Running head: DOMESTIC ENVIRONMENT RADIO SHACK 0
Domestic Environment Radio Shack
Hyerin Fletcher
American Military University
BUSN310 – Assignment 2
Emmet Fritch
14 September 2019
Domestic Environment Radio Shack
Business enterprises are very key when it comes to the growth of the United States of America Gross Domestic Products (GDP). Both small scale enterprises and larger enterprises contribute immensely to the economic growth of the country. We cannot escape from the fact that the U.S. is amongst the leading nations in the world when it comes to matters of employment and all that can be attributed by the fact that the country is a business-oriented one. Radio Shack Corporation was one of the enterprises contributed to the growth of the U.S. GPD. Radio Shack was a retail company that deals with selling of electronics and electronic parts, batteries and its accessories and other digital products related to technology. It was opened in Boston in the year 1921 whereby it expanded to around nine stores in the year 1963. It operates in the retail industry.
The company has been in business since it was opened in 1921 and still operating. The attribute for which it is least admired as the worst company is the unconcern or interruption to work and life balance. This is due to risks mostly associated with the third parties and in which the company in most cases have no control over them
Some regulations include the supply chain expenses which are very high whenever the government has a strain on the production sector. These expenses include the packaging, distribution and production of the electronic equipment (Buckley, 1990). There are also regulations concerning the environment that is how the raw materials are obtained to manufacture the equipment and the measures to be taken to ensure that the company takes care of the environment.
The government also restricts the manufacture of materials which use hazardous materials such as lead and mercury and bans any product which is suspected to have such hence it becomes difficult in choosing the raw materials which are not hazardous. The government puts up measures to ensure that the consumers are protected and that the company provides a better and safer working place for its employees which becomes costly for the company to cater for all needs of its customers and the employees.
Such government regulations often cause expenses and lead to an increase in production of prices (Shaulis, 1951). When the product price increases, it reduces the competitiveness and profitability of the company. Some laws which are put in place to permanently restrict raw materials from the conflict zones are for the better of the company because they reduce funds that support terrorism.
Some of the barriers to this business due to regulations include a requirement that for a product to be sold in a certain country it has to be partly made in that country. This becomes very selective for each country to produce only what it can manufacture hence it ends up importing some goods at very high prices (Harrison, Mykytyn & Riemenschneider, 1997). It becomes hard for the company to choose the raw materials to use because some of the materials like lead and mercury have been considered very toxic.
The theory of business gives the assumptions if a company’s behavior and dictates the dos and don’ts of a company. This ensures a smooth running if a company and ensures that everyone plays his or her role in the company (Novikova & Alekseeva, 2013). The company can overcome these barriers by ensuring that it uses the products licensed by the government so that they take care of the environment to avoid banning of the already manufactured products. According to Drucker the company should encourage innovation and refrain from setting strict hours to its employees.
In conclusion, the company should put more efforts into the production of quality electronic goods to cater to the advancing technology. It should also follow the rules and regulations set by the government so as to protect its consumers.
References
Buckley, P. (1990). Problems and Developments in the Core Theory of International Business. Journal of International Business Studies, 21(4), 657–665. https://doi.org/10.1057/palgrave.jibs.8490346
Harrison, D., Mykytyn, P., & Riemenschneider, C. (1997). Executive decisions about adoption of information technology in small business: Theory and empirical tests. Information Systems Research, 8(2), 171–195. https://doi.org/10.1287/isre.8.2.171
Novikova I, & Alekseeva K. (2013). Government regulation of business in a changing institutional barrier. Vìsnik. Kiïvsʹkogo Nacìonalʹnogo Unìversitetu ìmenì Tarasa Ševčenka. Ekonomìka, 2(144), 33–35. https://doi.org/10.17721/1728-2667.2013/144-3/10
Shaulis, L. (1951). Government Regulation of Business. Journal of Marketing (pre-1986), 15(000004), 503. Retrieved from http://search.proquest.com/docview/209298664/
