Business organisation and environment

Table of Contents

1. Topic pack - introduction
2. 1.1 Nature of business activity - notes
3. 1.1 Nature of business activity - questions
4. 1.2 Types of organisation - notes
5. 1.2 Types of organisation - questions
6. 1.3 Organisational objectives - notes
7. 1.3 Organisational objectives - questions
8. 1.4 Stakeholders - notes
9. 1.4 Stakeholders - questions
10. 1.5 External environment - notes
    1. External environment
    2. Introduction - PEST/STEP analysis
    3. The legal and political environment - introduction
    4. The legal environment
    5. Political stability and instability
    6. The social and cultural environment - introduction
    7. Social responsibility
    8. Demographic trends
    9. The technological environment - introduction
    10. The Internet and the World Wide Web (www).
    11. E-commerce
    12. Technological change
    13. The ecological environment
    14. The economic environment - introduction
    15. Economic growth
    16. The Business Cycle
    17. Inflation
    18. Exchange rates
    19. Unemployment
    20. Interest rates
    21. Government fiscal policy
11. 1.5 External environment - questions
12. 1.5 External environment - simulations and activities
13. 1.6 Organisational planning tools - notes
14. 1.6 Growth and evolution - notes
15. 1.7 Growth and evolution - questions
16. 1.7 Growth and evolution - simulations and activities
17. 1.6 Change (HL only) - notes
18. 1.9 Globalisation - notes
19. 1.9 Globalisation - questions
20. Print View

Introduction - PEST/STEP analysis

To help a business analyse the economic and business conditions they face, and to set strategic objectives for the future, they often start with a SWOT analysis.

Strengths (S) and Weaknesses (W) are internal factors, which influence performance. These are usually controllable by the firm itself, although the effectiveness of such control is dependent upon the strength and quality of management. Analysis of strengths and weaknesses is essentially an internal audit of where a firm is at present. If it is discovered, for instance, that motivation is poor, the firm may examine its recruitment or training, adjust payment schemes or look to empower the workforce.

Opportunities (O) and Threats (T) are the result of the external environment within which all businesses operate. These are uncontrollable factors, although the business will seek to forecast and prepare for change and remain flexible enough to react to changing circumstances.

PEST/PESTLE/STEEPLE analysis

PESTLE

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• PESTLE analysis

STEEPLE

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• STEEPLE analysis

In the next few sections we look in more detail at the OPPORTUNITIES AND THREATS provided by each of elements of the external environment.