Environmental Factors
MKT 421

Environmental factors are identifiable elements in the physical, cultural, demographic, economic, political, regulatory, and technological environment that affect the survival, operations, and growth of an organization. A global organization such as Target has to take into consideration these environmental factors to continue to grow outside the borders of the nation of origin. This paper will analyze global economic interdependence, the effect of trade practices and agreements, the influence of cultural differences, the effect of political systems, and the influence of international relations in relation to Target. This paper will also analyze the importance of demographics and physical infrastructure, the concepts of social responsibility, and the ethical and legal obligations of Target. An explanation of the effects of technology and the influence of the Foreign Corrupt Practices Act of 1977 as well as the influence of local, national, and international legislation on Target policies and practices, are included.("Environmental factors," 2012)
Environmental Factors Although Target stores have only recently moved into a global market with the acquisition of properties in Canada, Target Corporation has been a global organization for decades. Target has multiple divisions operating in other nations throughout the world. India is home to the Target IT solutions, customer service, and technical support divisions. There are many offices throughout Europe and Asia that operate Target sourcing services division; Target sourcing is the division that locates and acquires new merchandise that will be sold at the retail stores in the United States. Diversity is about people and the behavioral characteristics that guide how they interact. Celebrating difference, promoting tolerance, and understanding the values of other people are all aspects of the diversity within the organizational culture of a business. A global enterprise the size of Target must understand the importance of demographics in each area that it does business. Target is dedicated to maintaining diversity in all divisions of the corporate structure, including business partners. Target also holds itself and the companies it does business with to high levels of social responsibility and ethics. Target is a leader in ethics and has won awards for the dedication it has shown to the ethical business practices. Social responsibility is an integral part of the Target corporate culture.(Davis) Global economic interdependence is one country depending on another country for goods or services and that country depending on another country for the same. Importing and exporting of goods increases this interdependence. Target has a high reliance on other nations for many of the products that it sells to consumers in the United States. This interdependence is also evident in the trade practices and agreements that Target must enter into with other companies throughout the world. Target holds these companies to the same standards that it holds companies that it does business with inside the United States. Target has had a focus on community giving and an emphasis on volunteering for decades. With 5% of income given or more than 3 million dollars a week, Target has been a consistent giver to the communities that it serves. Target also has programs for funding education and reading, arts and culture, and social and charitable organizations. Because of the focus Target has on cultural diversity and community giving on all levels of the business, it has gained a reputation for not only embracing, but also utilizing cultural differences to help build a stronger business model. When possible Target uses the local workforce in countries that it operates. This strengthens the ties with the local community and gives Target access to different ideas and business models that a less diverse workforce would struggle to understand.("Target: company," ) When possible Target works within the current political system of all countries that it does business in. Target avoids nations that violate the core values that Target has set for the company. Although this limits the amount of countries that Target can do business with, such not utilizing the vast resources and workforce in China. Target policy states that until core human right and ethical business practices are met it is in the best interest of the company to avoid sacrificing core values for profit.
Technology
The advancement of technology has changed the shape of business globally. The speed at which business is done has been increased through the use of technological innovations in the fields of communications and information gathering. Target Corporation has embraced technology for many aspects of in-store and corporate functions. With the focus on the use of modern forms of communication Target has been able to solicit feedback and ideas from a broader spectrum of managers and employees from all the countries it does business in. Target uses feedback and communication from in-store and operations personnel to find more efficient ways to do business. Employees on all levels of the business have a voice through the use of technology.
Foreign Corrupt Practices Act of 1977 The Foreign Corrupt Practices Act of 1977 prohibits any American company from bribing foreign governments, politicians, or officials to ensure a business relationship. The FCPA directly addresses two forms of bribery; direct and intermediary. Direct bribery occurs when a person acting on behalf of the company is making the bribe. An intermediary bribe occurs when a person of the organization arranges the bribe through a third party. FCPA also requires offshore U.S. companies to keep accurate detailed records of asset movements in an attempt to keep accounting figures accurate and bribery to a minimum. A company that breaks the laws set up by FCPA they face severe penalties including a $2,000,000 fine for companies, and up to $100,000 fine and five years imprisonment for individuals who are associated with the bribe while employed by the company.("The fcpa explained," 2012)
Conclusion
Environmental factors have a major influence on the way a global company conducts business. Diversity, knowledge of demographics and an understanding of global economic interdependence are important for any business to be successful. A global business such as Target must also be aware of the local customs, government, and business regulations that operate within the country it wishes to do business in. This includes an understanding of FCPA and how it applies to all employees of a company.

Resources
Davis, E. (n.d.). The impact of culture on diversity. University Consulting Alliance, Retrieved from http://www.washington.edu/admin/hr/pod/leaders/orgdev/alliance/articles/culture-diversity.pdf
Environmental factors. (2012). Retrieved from http://www.businessdictionary.com/definition/environmental-factors.html
Target: company. (2012). Retrieved from http://sites.target.com/site/en/company/page.jsp? contentId=WCMP04-030795
The fcpa explained. (2012). Retrieved from http://www.fcpaenforcement.com/explained/explained.asp