Components of the Domestic and Foreign Environment

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Provide a 7 pages analysis while answering the following question: Components of the Domestic and Foreign Environment of Simon Property Group. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Simon Property Group is the largest real estate company with a global presence. Being based in the United States (U.S.), the firm’s domestic environment will be influenced by regulations and government policies prevalent therein. Since the organization deals in properties, the major developments in property-related regulations will affect the business. The economic environment of the company mainly constitutes the country’s gross domestic product, economic growth, unemployment rate, taxation rate and purchasing power of the consumers. Presently, the United States is facing turbulence in its GDP, but the personal income of the individuals is slowly growing. Different states in the U.S. have separate taxation rates and purchasing power of the consumer, which can prove either favorable or unfavorable depending upon circumstances. The social aspect of a business environment is the way in which projects of an organization affect society. Currently, consumers show concern not only about product quality but also its impact on the surrounding. Simon Property ensures that high quality is maintained in its products (projects). They undertake genuine efforts to retain consumers with better service. Keeping in view the growing demand for malls and other entertainment zones, the company continues to invest in a large number of properties to facilitate greater satisfaction of consumers. Technological intervention in the present market has become unavoidable for every organization. Companies are increasingly ensuring that they undertake technological integration in their activities. The technological environment of the U.S., as well as that of Simon Property Group, is highly developed and the company has incorporated technological development in its activities as a part of the growth strategy. Presently, there are a number of federal laws that every organization needs to abide by in the U.S. These laws are mainly practiced to protect organizations from cyber threats and crimes.

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