Analysis Of The External Environment Of Business

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Analysis of the External Environment of Business

The Technological Environment

The external business environment consists of four elements, they are as follows: Political, Economic, Social and technological. It would be impossible to analyse the whole environment in one essay, I have therefore decided to focus my essay on the technological environment. I have chosen this area to focus on because as Palmer and Hartley point out, it is one area that is forcing immense change in the external business environment.

‘The business environment is at present moving through a dynamic and turbulent phase driven by technological change, globalization and increasingly competitive markets' (Palmer and Hartley 2002).

I will be researching and analysing the major changes that have taken place in the technological environment over the last ten years and explore how they have affected business practice. I will also be discussing how these changes have implicated on the Public Relations Industry.

Technology is defined as:

‘the sum of knowledge of the means and method of producing goods and services' (Bannock et al 2003).

This authoritative definition of technology assumes technology only refers to the artifacts themselves rather than the way they are used and the theories governing their application. Human knowledge however, is an essential ingredient of technology and I therefore prefer the following definition:

‘The application of available knowledge and skills to create and use materials, processes and products' (Needle 2004)

This wider definition relates the application of knowledge to the wider processes of business practices i.e. the production and promotion of goods and services. Further it indicates how technological de...

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...al change has transformed businesses activates which has brought huge economic advantages to many businesses. We have seen new markets develop through the increased use of the internet and countries prosper through the development of the global communications network.

I can therefore conclude that technological change has had the biggest affect on the external business environment, at all spatial levels, than any other factor.

Bibliography

Reference

The Business Environment: Fourth Edition 2003

By Ian Worthington and Chris Britton Financial Times: Prentice Hall

The Business Environment: Fourth Edition 2002

By Adrian Palmer and Bob Hartley McGraw –Hill Education

Business in Context: Fourth Edition 2004

By David Needle Thompson Learning

The Penguin Dictionary of Economics Seventh Edition 2003

By Graham Bannock, R. Baxter and Evan Davis Penguin Reference

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