Essay about Economic

COMPONENT B – Question 4

In inspecting the macro-environment, it is important to recognize the factors that might in return affect many vital variables that are more likely to influence the organization's supply and demand levels as well as its costs (Kotter & Schlesinger, 1991; Manley & Scholes, 1993). В AВ PESTВ analysis is one of them that are merely a framework that categorizes environmental influences since political, monetary, social-cultural and technological forces. All these factors are further than the control of the company and it takes on an important function in deciding the success of the organization. В Applying this analysis can be conducted on each of your company, if large or perhaps small to let companies to compete and survive much longer.

The use ofВ PESTВ analysis can be seen powerful for business and strategic organizing, marketing planning, business and product development and research information. В PESTВ also ensures that company's efficiency is lined up positively with all the powerful causes of alter that are impacting business environment. When a company decides to enter its organization operations in to new marketplaces and fresh countries, INFESTATION analysis are extremely useful. Furthermore, the results can then be used to take advantage of opportunities and to make backup plans pertaining to threats when preparing business and strategic programs.

Observation within the strategic options open to Yeo Hiap Seng Company (Yeo's) has been done using INFESTATIONS analysis approach. The Yeo's is engaged principally in the production, marketing and sale of food, drinks and sweetened condensed milk locally and internationally. This business has used INFESTATIONS analysis approach in order to have a highly effective and accomplishment business.

National politics is one of the main aspects of INFESTATION analysis. This factor refers to the personal situation near your vicinity. В This is the most important aspect for each and every company, specifically companies that are developing or perhaps already with the foreign countries. Any nation that is facing political problems will not be in a position to attract overseas investors or local buyers in that region. В For Yeo's company ahead of they coming into an international industry, they will determine and research the earlier backdrop of the region either the nation is suitable or not to market their products. В Most of Yeo's products are just available in Asia because of the politics situation in Asian countries relatively safe compared to the other foreign countries. В This is because the Yeo's target is to become Asia's leading drinks makers.

Thompson (2002) states that economy research is afflicted on how convenient or how difficult should be successful and profitable by time since they have an effect on both capital availability and cost and demand. This factor is important to community as well as overseas companies to invest in a country. В There is no uncertainty that a region with solid economic situation of the price of monetary growth was be able to entice large companies to arrive and invest to their firms because buyers often check out a country's economic growth rate like a guide in making any purchase. В For Yeo's Company, earnings is the main motif. В It are visible the financial year 3 years ago has been a rise of 7. 9% over 06\. В In addition, Yeo's business also has expense of firms that have good economic qualifications. В This is to ensure the corporation will have not a problem in the future in comparison to companies with all the financial burden. В The foreign trade market as well continues to demonstrate a strong development, especially in Philippines. В At this time around the company could attract and convince even more companies to get. В The rising of economical has helped Yeo's Business to become a leading beverage firm in Cookware with the enhance rate of profit yearly.

According to Thompson (2002) the socio-cultural environment encapsulates demand and tastes, which usually vary with fashion and disposable income, and general changes, can easily again give both chances and hazards for particular companies. This kind of...

References: 2. OSCE, 2006. Best practice guide for a positive organization and investment climate. [pdf] Austria: OSCE

Available at: http://www.osce.org/publications/eea/2006/07/19786_640_en.pdf

[Accessed 28th Nov 2010]

* Financial Help, 2010

* Smith A., 1789. The wealth of nations. sixth editions. United Kingdom: W. Strahan and Big t. Cadell.

* Oxford University Press, 2007

2. Wikipedia, 2010. PEST analysis. [online] (Updated 27 The fall of 2010)

Available at: http://en.wikipedia.org/wiki/PEST_analysis

[Accessed 30th November 2010]

5. Yeo's Company, 2010

5. Malaysia Commercial Development Authority, 2008. Encouraging government plans [online] (Update 5th January 2009)

Offered by: http://www.mida.gov.my/en_v2/index.php?page=government-policies

[Accessed very first December 2010]

2. East of England Creation Agency, 2009

* Sport Development, 2002. Olympics Games study impacts. [online]

(Updated 22nd March 2005)

2. Onenortheast, 2010. Cultural and social impact of the 2012 Games. [online] Available at: http://www.onenortheast.co.uk/page/2012culture/index.cfm

[Accessed 3rd January 2010]

* Nottingham, 2005. The economic effects of the London 2012 Olympic [pdf] Nottingham University Organization School: Nottingham.

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