Analysis Of The External Environment Of Business Essay

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Analysis of the External Environment of Business The Technological Environment The external business environment consists of four elements, they are as follows: Political, Economic, Social and technological. It would be impossible to analyse the whole environment in one essay, I have therefore decided to focus my essay on the technological environment. I have chosen this area to focus on because as Palmer and Hartley point out, it is one area that is forcing immense change in the external business environment. ‘The business environment is at present moving through a dynamic and turbulent phase driven by technological change, globalization and increasingly competitive markets' (Palmer and Hartley 2002). I will be researching and…show more content…
Investment in technology and innovation is frequently seen as a key to the success of an enterprise and has been used to explain differences in the relative competitiveness of different countries. As Worthington and Britton point out: ‘the development of quartz watches, which allowed Japan to enter the market and compete with Switzerland' (Worthington and Britton 2003) As this example shows the more Japan invested in technology the more competitive they became with Switzerland. Technological changes over the last ten years have transformed many business activities and created entirely new ones. Some of the major changes have been in I.T (information technology) which has affected many every day business activates. Administration is one area that has been transformed by developments in I.T. Due to the drop in cost of computers and the increased use of e-mail as the primary form of communication; many businesses now have networked computers to enable better internal and external communication. Businesses are also able to store data in electric format rather than on paper saving both space and allowing easy access to information. These developments have resulted in significant economic benefits for businesses which have allowed them to invest in other areas such as research and development and human resources both aiding business expansion. Production is another area that has benefited from advancements in
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