PEST Factors for FedEx FedEx Corporation, formerly called FDX Corporation, is a global management services company providing customers and businesses with shipping, trade, and marketing services. It's also very focused on the impression it leaves with the people and places it serves, so it uses PEST (Political, Economical, Social and Technological Factors) to determine its market standing and what service improvements are necessary. Political Factors * Primary political factors affecting an organization are government rules and regulations. Being an international company, FedEx interacts with various nations around the world that don't enforce tough trade regulations, granting them the privilege of getting better international services. Some other political factors of concern are political stability, industrial limitations and business standards.
These can come from hugely varied sources, from the weather to a war on the other side of the world. The economy and government attempts to control it are more obvious influences on business activities but how each business will be affected are vastly different. During this unit you will investigate the differences in businesses; how they are run organised and influenced. Why certain businesses are organised in different ways and which individuals and organisations are interested in the progress of different businesses. By the end of this unit you should understand: • The range of different businesses and their ownership.
The two companies appear to share values related to corporate social responsibility, but employees question whether Ben & Jerry’s previous commitments on issues like product purity and providing a public voice on social issues fit into the new business strategy. The uncertainty is resulting in declines in both morale and employee commitment. Yola Carlough’s strategy as head of Social Mission should be two pronged. First, she must begin a process of realigning aspects of the culture that are in conflict with the current business strategy. This must include addressing core values that are in conflict with the new strategy as well as building a new vision that embraces core values essential to the strategy, like operational efficiency.
|Learning objective |Place in Assessment | |1.1 Explain reasons for change in a business environment |Question 1 Page 1 | 1. Explain why change happens in a business environment. You should include at least three reasons for your answer. [1.1] Within a business organisation, there are various factors that can influence changes in a business environment, for example, there are external pressure and internal demands. Those influences can be measured by using the PEST analysis acronym that is the Political, Economic, social and technology.
Introduction The current economic environment is very influential on business planning and strategy. Due to economic shifts in the United States, a good strategy for business and services is to keep prices low without compromising quality. The same is true for the tax accounting and the consulting industry. A reduction of prices can be done through careful restructuring of the business to accommodate the slowing economic conditions. By expanding into the market of low cost tax accounting services this firm will be able to remain competitive and profitable.
To refute this argument, they have to involve themselves into solving social needs of the host country, and this is called Corporate Social Responsibility. Social responsibility and ethical behaviors is some of the key factors that the international managers have to keep in consideration while operating in host countries. This is importance as Global interdependence has increased and without this managing independently will not occur in MNC. However in recent times, violations against human rights, environmental and business misconducts issues have been attached with the company. These issues have originated in Columbia, India and Mexico.
Ethical Issues with Emerging Economies 1. “CSR and ethical behaviour are only relevant for MNE’s operating in the developed world” critically discuss this statement. * Definitions: * CSR: This refers to companies taking responsibility for their impact on society * Ethical behaviour: Demonstrating respect for moral principles. Acting in ways that are consistent with what the society think are good values * Multi National Enterprises: companies that operate on a global scale * Developed world: Countries that are economically stable and politically. * Point: Firms believe that they need to conform to CSR and conform to ethical behaviour because corporate image is important in order for them to high a profitable enterprise.
Select the TCO your essay question will cover: TCO A - Given that progressive and successful companies require their employees to embrace change, examine how changing work conditions impact the employees. Changing work conditions should not be looked at simply in economic terms. It is an employer-employee relationship that has to be managed properly in order for an organization to evolve. It’s inevitable that organizations need to change and adapt if they want to keep pace with competitors in their industry. Change is usually driven by internal and external factors, some of which leaders in an organization have limited control over.
Government creates the rules and frameworks in which businesses are able to compete against east other. From time to time the government will change these rules and frameworks forcing businesses to change the way they operate. Business is therefore keenly affected by government policy. The key area of government economic policy is the role that the government gives to the state in the economy. Between 1945 and 1979 the government increasingly interfered in the economy by creating state run industries which usually took the form of public corporations.
Nevertheless, The Home Depot is more concerned with their eight corporate values as these guide the actions of leadership in addition to their employees. This outline will provide factors and details related to an external and internal analysis needed to complete the strategic plan. External environmental factors A PESTEL analysis encompasses external factors like Political, Economic, Social, Technological, Environmental, and Legal environments. This type of analysis can assist The Home Depot with decision-making in regards to external variables. Below is a quick PESTEL analysis: Political They effectively take part in the political activities for the best interest of the company and its customer for the policies that can affect their business activities.