Analysis of the External Environment of Business
A business' is commonly defined as an organisation which provides goods or services in addition to transforming input into output. Its objectives can either be profitable or non-profitable. One of the main requirements that must be fulfilled for a business to exist is that it must act and react to activities and occurrences beyond that of the organisation. These factors that happen outside of the business are known as external influences or factors. They have a major influence on a business with respect to the main internal functions and occasionally their objectives and strategies. However, the overriding factor that affects most business is the degree of competition between themselves and another business that provides the same product or service. Other significant influences are social, legal, economic, political and technological factors.
Technology is defined as the sum of knowledge of the means and methods of producing goods and services' (Penguin Dictionary of Economics- The Business Environment, Worthington and Britton). It is also increasingly science based, encompassing things like chemistry, physics and electronics, and refers to the organisation of production as well as the actual techniques of production itself.' (The Business Environment-Worthington and Britton)
The major technological factor that affects business is technological change, in particular, the rapid pace of change in production processes and product innovation. As a result of this, new products are introduced, adjustments to the organisation and method of production are implemented, alterations to the quality of resources and products are made, and new ways of distributing the ...
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...p of technological developments and advancements, it is also an essential key factor and strategy within Public Relations. This is mainly due to several reasons. Firstly, fluency with technologies must be attainted in order to present all communication possibilities to clients. Consultants must be seen to be adept and familiar with all areas of technology, old and new, in order to present a reassuring, modern approach. This is simply due to the fact that clients and customers may look elsewhere if they feel they are not being presented with all the possible current options for publicity and they are missing out on a whole other field. For example, if you are a Public Relations consultant for the supermarket Tesco, in order to achieve maximum publicity for them, the most modern and innovative approaches must be used in order to keep up, or surpass their competitors.
A business can either take a step forward or a step back depending on the external and internal influences and how they handle them, they can either flourish or enter stages of degradation and cessation. External and internal influences on a businesses plays a part in the opportunities that arise in the industry the business operates in, otherwise the business may choose to venture out of it’s defined industry depending on the opportunities at hand. Businesses are affected by internal and external influences to a degree where they are either benefiting or suffering from the way they handle opportunities that arise. The five articles depict the problems encountered by businesses no matter their size or industry.
Environmental – External environmental factors are forces or trends that can affect a business whether it is an opportunity, threat, or constraint. They can be divided into three interrelated subcategories of remote, industry, and operating environments. The remote environment includes factors beyond a company’s operating situation such as the economic, social, political, technological, and ecological factors. The industry environment includes factors that have more of a direct influence on a company’s business such as entry barriers, competitor rivalry, the availability of substitutes, and the bargaining power of buyers and suppliers.
Technology in simple terms of definition means to use knowledge as a tool kit in order to
b) Technology is the application of science for the benefit of society and technology is a development of machinery used for scientific knowledge.
The dictionary definition of technology is, “ an application of scientific knowledge for practical purposes, especially in industry.” In my opinion, this broad and “undefined” definition does not clearly describe what technology truly is to us today. For some, it is their lifeline, their job, and their passion. For others? Well, as Bobby Boucher’s mother in the movie, Waterboy, would say it, “is the Devil.” Whether you’re a fan or not, computers, cell phones, and soon to be driverless cars, are engulfing and controlling the world around us.
External factors are those that are beyond the control of management. There exist several external factors in a business environment. These are competition, fiscal policies, and macro-environment, and industry analysis factors amongst others. Macro environment and industrial analysis factors will be considered.
External factors are usually beyond the control of the business. The best way for a business to deal with these external changes is to be pro-active. A successful business would be ahead of these changes rather than hurriedly making knee-jerk reactions. There are six main external factors which would possibly affect the performance of a small business :Political, Economic, Social, Technological , Legal and Environmental (PESTLE Analysis)
In recent decades, the world economy has undergone an unprecedented level of integration. Previously, I have provided a list of knowledge management tools that can be utilized to analyze many questions and trends, as well as the reason why these tools are important in the global economy. These tools are essential of international relations as being able to examine global problems beyond the headlines. This paper further demonstrates how these tools could be applied to solve the problem or to bring the business opportunity to fruition in today's Japanese business environment.
Businesses play a significant role with the economies of all countries, whether developed or developing. It contributes to the welfare of the society through the satisfaction of needs, provides a source of livelihood to millions of people worldwide. Businesses do not operate in vacuums but operate within business environments. The events in the environment of a company have a direct effect on the success or failure of that company. According to Jain, Trehan and Trehan (2009), business environments can be categorized in two: (1) internal business environment; (2) external business environment. Institutions and organizations are usually in a position of controlling their internal business environment. By doing so, they gain the ability of affecting their institutional performance. On the contrary, it is difficult for a business to control the external environment; however, businesses can identify in advance the opportunities and threats presented by the external environment and take decisive actions to ensure its continued success (Jain, Trehan & Trehan, 2009; Goyal & Goyal, 2009).
Technology is the creation, modification, use, and knowledge of tools, techniques, machines, systems, crafts, and organization methods, so as to solve a problem, better a pre-existing solutions to problems, achieve a goal, manage applied input/output relations or perform an explicit function. It may moreover refer to the assortment of such tools, as machinery, arrangements, modifications, and procedures. In the article “The Technological Revolution,” Barbour states that technologies considerably affect human along with other animal varieties’ capability to control and acclimatize to their usual environments. The term may either be applied universally or to particular areas: examples encompass medical technology, information technology, and construction technology (Barbour, 15).
Government influences include regulations, export restrictions, import tariffs and quotas, and government debt. The government influences can help or cause major problems for a business. The changes in regulations will force the business to meet and stay up to ...
Product changes and update as fast as the technological change because when the new technology appeared, it will be implement to our current product to improve the product quality then also improve the firms performance. New technology connects a new product, which means a promise for higher technical performance and offering extra functionality and increased benefits to customer(Garcia and Calantone, 2002;Hill and Rothaermel 2003;Zhou, Yim, and Tse,2005, cited on Kock A, Gemunden H, Salomo S and Schultz, C 2011).In addition, technology can achieve a better performance for firm productivity with a introducing a new product design through its technology capacity(Grant 1991, cited on Hua S & Wemmerlov U 2006). In the Burgelman, maidique and Wheelwrigh's report(1996), they said that technology also usually changes the product design and improves the production capacity(cited on Hua S & Wemmerlov U 2006).Moreover, high technical product can support the firm to offer a higher quantity and better quality product in fast succession then should enhance its product advantage and market success(Hua S & Wemmerlov U 2006), and another view is technological influence has positive slow effect on the relationship between firm's innovation and product advantage. technological force has ...
Organisation is the most important element in management. Any organization is located and operated in the environment. Every action of all organizations is possible only if it allows its realization. The internal environment is the source of its vitality. It involves the capacity needed for the functioning of the organization, but at the same time can be a source of problems and even her death of the organisation. The external environment is the source that supply organization resources. The organization is in constant exchange with the external environment consequently it provides itself with survival. The main objective of this work is to consider elements of the internal and external environment of the organization which are in a constant
When analysing a business from the internal as well as external perspectives a well-known model of strength-weaknesses-opportunities-threats is commonly used (Barney, 1991). The Strength-weaknesses perspective is used to identify the internal factors of the business while the opportunities-threats perspectives used to identify the external factors
Science and Technology has been around from the beginning of time. It evolved from the everyday efforts of people trying to improve their way of life. Throughout history, humankind has developed and utilized tools, machines, and techniques without understanding how or why they worked or comprehending their physical or chemical composition. Before we go any further a definition has to be given for both Science and Technology because they are both different in their own right even though the two are almost indistinguishable. According to the Oxford Dictionary Technology can be defined as the knowledge or use of the mechanical arts and applied sciences, while Science can be defined as the branch of knowledge involving systematized observation and experiment. Science can be further divided into three separate categories; Pure, Applied and Natural Sciences. In addition technology is often defined as applied science, it is simply the application of scientific knowledge to achieve a specific human purpose, however, historical evidence suggests technology is a product of science.