The Business Environment of the Modern Day Society Research Paper

The Business Environment of the Modern Day Society - Research Paper Example Because of this transformation of the world, information from various corners of the world can be easily accessed by individuals and organizations without facing the problems of existence of a geographical barrier. The availability of various kinds of free data and other information content has automatically contributed in the rapid dispersion of various kinds of global trends. The fast maturity of markets around the world with response to the global trends resulted in creating unique demands from the consumers located in the developed as well as the developing markets. Business organization and companies in order to attain future growth in their areas of businesses increasingly try to focus on fulfilling the demand arising in the new as well as established markets located all over the world. However, before entering into a new market or trying to fulfil an existing or emerging demand in an already existent market, firms and organization often conduct external as well as internal env ironment analysis. While the internal analysis of the firms’ environment brings into focus the various advantages and disadvantages that are existent within the possibility of control of the firm, the external analysis outlines the positive and negative points that are beyond the controlling ability of the firm. Talking in a little detailed manner about the analysis of the external environment, it has to be said that the PEST analysis plays a very critical role. The PEST analysis comprises of evaluation of the external environment from the perspectives of political, economic, social and technological factors. It is important to mention that the PEST analysis is a highly effective tool for organizations that are looking forward to identify and control the weaker sides of the business environment so as to generate significant amount of potential leverage for their own product or service offerings (Henry 2). Talking more on the same note, it has to be said that by using the PEST analysis, the organizations look forward to capitalizing on their core competencies while addressing significant anomalies that might alter the balance existing in a competitive environment of business. It is relevant to mention the fact that when firms and organizations look forward to implementing a PEST analysis for analyzing and studying the current business environment, focus has to be given on a particular region on the basis of the firms’ product or service offerings. Also, an effective study of the business environment by the firm while using the PEST analysis will help the organization or firm to identify potential areas of business opportunity and threats (Ward and Daniel 28). Talking in a little elaborate manner about the factors that comprise of the PEST analysis, a brief description about each of the four factors has to be provided. While discussing the political factors, issues comprising of consumer protection law, contract and property rights, exchange rate p olicies, healthcare policies, political stability and trade regulations has to be taken into consideration. The economic factor will cover the analysis on the lines of availability and cost of workforce maintenance, growth factors of the economy, economic growth rate, rates of unemployment and inflation, stability of the exchange rate of the currency as well as existence and nature of the free market. While talking about the social factor of the PEST analysis, importance has to be given to issues like demographic factors, education, spirit of entrepreneurship as well as factor of wealth distribution. Finally while discussing about issues related to