Monday, June 24, 2019

HR Assignment Example | Topics and Well Written Essays - 1250 words

HR - Assignment ExampleDowney (2007, p. 6) provides further insight on what PEST compend means, highlighting the fact that it is a scan of the external macro-environment deep down which an organisation operates. It is broadly broken down into political, economic, social-cultural and technological factors which form the four tenets of PEST analysis. This part of the study will explore the concept of PEST analysis using practical examples. The political aspect of the PEST analysis involves the effects of government policy on a firm since this consideration impacts nearly alone aspects of the firms operations. Henry (2008, p. 52) states that the political factors inciteing a firm do not merely arise from legislation but encompasses issues such as government stability, taxation policies and government regulation. With the advent of globalisation, government stability, which has traditionally not been a concern in developed nations such as the UK, can straightway not escape attention as firms seek to transform into multinationals. Establishment of supranational cooperation such as the European Union also comes into play as cross-national standardization takes course. Deregulation of an industry by the government may result in new entrants that practice competitive pricing and thus affect incumbents. The back aspect in PEST analysis involves economic considerations, where there is the analysis of economic indicators such as interest rates, peoples disposable incomes, unemployment rates, inflation, notes strength and global economics (Henry 2008, p. 54). A practical example is one in which a firm dealing with importations in the UK has to monitor the strength of the superior Pound since a strong Pound could easily make importation quite expensive. The same firm is also affected by global crude oil price dynamics and must become felt the repercussions of an economic downturn resulting from American economics. In such a recession, the spending power of consume rs declines and lay-offs increase indeed affecting such a firms sales. All of these should be analysed if the firm is to navigate the industry properly. Osborne and Brown (2005, p. 17) explain that firms are impacted by social factors like an aging population, social inclusion agitation, new social needs and transformation of previous needs and need for sustainable societies. All these affect a firms market size, customer loyalty and growth and thus are weighty considerations for firms. For instance, population demographics may determine the products that will have large markets and strategies that will access such markets. Different products and strategies appeal to both young and ageing populations in significantly different ways hence a firm has to ensure it analyses population trends and future expectations. The last aspect of PEST analysis is technology, where a firm has to ensure it places itself in a strategic bewilder to take advantage of new and useful technologies since the implications in terms of competitiveness are far-reaching (Gimbert 2011, p. 49). Some of the most impacting technologies include IT, internet and genetic engineering bandage emerging areas such as nanotechnology are bound to be influential. A practical example of how analysis of the technological factors is crucial is in the advent of the internet, where the outset firms to capitalise on its advantages such as ease of communication and access to wider markets gained immense competitive advantages over their rivals. Part 2 a) Structural Problems Sony is a more often than not successful

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