Extern Influence: Aims And Strategies

Organization and extern influence

Full name: Salma

Lamzaouek (3663)

Group number 3

Summary:

Introduction:

Organization and extern influence:

1. Definition of external influence

2. Aims, Objectives, plan and strategies:

3. Importance of objectives and some of the Factors that can determine the corporate objectives of a business:

4. How external change affect corporate’s aims and strategies?

P.E.S.T analysis:

1. What does the acronym refers to?

2. A model of P.E.S.T analysis.

3. PEST analysis in marketing

Ps: This report contains a mix of some sections in chapter tree and five.

Introduction:

When starting a new business, the first objectives and hardest one is to insure its survival. Once

this

2. Aims, Objectives, plan and strategies:

There is a certain hierarchy of objectives as it is readable in this pyramidal way:

There are other types of objectives like the following:

• Tactical (operational) objectives: Short term objectives that are mainly departmentalized,

(for example, more sales; lower costs) and survival especially in tough economic times.

• Strategic objectives: Long term plans that usually affect the entire business like growth, image and reputation or market share. (For example, a bigger market share. Higher product quality than rivals.)

• Ethical Objectives: Ethics are the moral principles that guide decision-making and strategy An ethical business is likely to treat its workers, customers, shareholders and the environment in a responsible manner

For example, a company may have a corporate objective of becoming a global operator in ten years, getting established in Europe within one year may be a tactical objective but in reality, business may have several strategic objectives taking place during the same

The acronym can be rearranged as STEP and can be developed to STEEPLE: “Social, technological, economic, environmental, political, legal and ethical” or PESTEL (same categories but ethical is excluded)

The multitude of external environment factors can be grouped as follows:

. Political-legislative factors: legal and policy framework comprising the organization existence. The legal framework includes all laws and legal regulations the relational system Example: commercial law, regime of taxes, labor law, environmental law etc.

From this perspective we can speak of the need to ensure a climate of political and legal stability, which may encourage or discourage business.

. Economic factors: that directly affect business organizations by interest rates, inflation exchange rate, fiscal policy, price fluctuations, etc.

. Social factors: This issue analyzes the demographic and cultural aspects of the company's market. These factors help businesses examine consumer needs and determine what pushes them to make purchases. Among the items that should