Economics and Changes

1280 Words6 Pages
Nokia not so Mobile?
Write a brief account of how different elements of the temporal and PEST environments interact to influence the situation described in the case.
Change is unavoidable in the existence of an organization. Nowadays, most of the organizations in the business world are facing changing business environment. There is no way to avoid either change or die. The major forces which make the changes not only desirable but inevitable are technological, economic, political, social, legal, international and labor market environments. The case in this assignment is Nokia, the Finnish company, faced problem because of changing customer tastes, new technology and stronger rivals.
In 1865, Fredrik Idestam established a paper mill on
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Changes in political environment not only influence organization directly also interact with changes in the economic environment.
Economic Factors
For organizations, there are many concerns with triggers for change in the economic environment. These are not only competitors but also other issues like exchange rates, tax, wage rates, economic policies and etc. (Cook,2004) Organizations need to look at the level of inflation, employment level per capita, interest rates and long-term prospects for Gross Domestic Product (GDP) per capita, and so on. There are two types of forces in the market which can affect the competitive position of an organization –other organizations supplying the same products and, buyers who are not buying the product.
Socio-cultural factors
These are related to people’s behaviour, tastes, and lifestyles. Social changes are signs of in terms of people’s aspirations, the needs, and their ways of working. Social changes have taken place according to the several forces like level of education, urbanization, feeling of autonomy, and international impact due to new information sources. The social influences on business are many ways from country to country. Important factors to consider for
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