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Essay

Analysis of the External Environment of Business

Essay specific features

 

Issue:

Business

 

Written by:

Peter C

 

Date added:

November 27, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1408

 

Was viewed:

6126 times

 

Rating of current essay:

 
Essay content:

Although some external factors can pose a threat to a business, they can also create new opportunities. In order to assess their environment, a business may use a PEST analysis structure to evaluate the external influences or macroenvironmental factors that could affect the strategic development of the business under four areas; political factors often look at areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability...
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The economic factors include economic growth, interest rates, exchange rates and inflation rate. Social factors are concerned with the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. The technological factors involve ecological and environmental aspects and can determine the barriers to entry, minimum efficient production level and influence outsourcing decisions...
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