Examples of how changes in the environment affect organisations.

Contents
Introduction3
1

Tube gets first Wi-Fi at Charing Cross 3

Nintendo hit as high Yen takes its toll on business..4

Water to be tested from ! "il #$ill.....................................................................................4 %& to launch 'oogle search in(estigation.) ibliogra$h*

+ccording to ,ob Watkins -.//01 organisations are entities made u$ of interrelated $arts 2hich are intert2ined 2ith the outside 2orld -the e3ternal en(ironment1. usiness organi4ations and firms ha(e to be 2ar* of e3ternal influences that can affect their organi4ation this can be a $ositi(e affect or

negati(e effect. There are man* factors that ha(e an im$act on the 2a* organi4ations o$erate. Thus 2here an organi4ation suffers from an e3ternal influence the* need to ada$t their $roducts or ser(ices. !estle stand for 5Political6 Economical6 Social6 Technological6 Legal and En(ironmental. In this re$ort I am going to use 4 articles 2hich are about a s$ecific firm and discuss ho2 each one suffers from one of the factors of the !%#T7% anal*sis 1. Tube gets first Wi-Fi connection at Charing Cross 1.1 Technolog* is one e3ternal factor from the !%#T7% anal*sis6 The article is about $ro8ect Wi-Fi 2hich is about the introduction of the first Wi-Fi access in 7ondon undergrounds b* the com$an* T. The com$an* I9m going to talk about is T6 the* aim to $ut on a si3-month trial 2hich 2ill allo2 commuters to connect to the internet 2hile on the train6 and enable them to check emails and bro2se the net. In(estment in technolog* and inno(ation is seen as a ke* success for an enter$rise -,ob Watkins6 .//06 $:/1. T trialling Wi-Fi on the tube is going to ha(e a $ositi(e effect on its sale for broadband as more customers are going to be enticed b* its additional benefit of using the broadband ser(ice on the tube 2hile tra(elling for e3am$le to 2ork. 1.2 The article states ho2 the ser(ice 2ill be free for T broadband customers as a result this ma* gain them a com$etiti(e ad(antage against the likes of other com$etitors such as Talk Talk and ;irgin. The reason for this 2ould be because customers might be more inclined to s2itch to T internet ser(ice for this e3tra feature the* $ro(ide that no other internet ser(ices offer. +s the maturit* of technolog* is de(elo$ing and the use of technolog* is increasing6 this means that T are able $romote their ser(ice and attract a 2ide range of internet users and become e(en more $o$ular 2ithin the nation. 1.3 Though this ne2 im$lementation of technolog* can be (er* ad(antageous it does ha(e its disad(antages6 for e3am$le one disad(antage in this case is the im$lementation of Wi-Fi in the underground could $ut the cit* at risk of terrorist attacks and 2ith the "l*m$ics coming u$ it raises huge securit* concern. 1.4 "ne +d(antage of Wi-Fi in the tube 2ould be more efficient as it 2ould allo2 customers to check their email6 com$lete some 2ork the* could be doing in the office6 in the tube thus sa(ing them time that could be better used b* allo2ing them to do more 2ork in the office that could im$ro(e the o(erall $erformance and making the com$an* more mone*.

2. Nintendo hit as high Yen takes its to on business ..: %conomic factor is another e3ternal influence from the !%#T7% anal*sis6 an organi4ation has to be 2ar* of these factors as it can ha(e conse<uences on the businesses aggregate $erformance. For e3am$le the article states ho2 due to the $rice of the Yen increasing this 3

has caused Nintendo sales re(enue to diminish as the* are hit b* the high =(alue= of the Yen. The rising (alue of the Yen reduces the (alue of $rofits made abroad 2hen con(erted back to the >a$anese Yen. ... In all cases of changes in demand and su$$l* the resulting changes in $rice act as both signals and incenti(es6 a fall in demand is signalled b* a fall in $rice6 therefore this acts as incenti(e for firms to $roduce less of goods as the* are no2 less $rofitable to $roduce. -,ob Watkins6 .//0 $g .?:1. The article also states Nintendo sales also fell first half of the *ear $artl* due to lo2er demand for its Wii console. This 2ill act as an incenti(e for Nintendo to sto$ $roducing more Wii consoles. ..3 >a$an has little the* can do 2ith their currenc*6 the* are able to inter(ene in the currenc* market and do a lot of rounds of <uantitati(e easing. @o2e(er6 this 2ill not ha(e lasting effects as com$etiti(e de(aluation means it 2ill be a race to the bottom as much larger countries6 such as the &# and China to also de(alue 2hich 2ill onl* lead to tem$orar* increases thus causing all $arties to lose in the end. It9s also an e3$ensi(e mo(e that 2ill ultimatel* return (er* little. Currenc* fluctuations are una(oidable as de(elo$ing nations gro2 and 2eakening the Yen 2ill onl* be a tem$orar* solution for >a$an. !. Water to be tested fro" #P $i S%i & 3.1 %n(ironmental influence is another e3ternal factor from the !%#T7% anal*sis6 %n(ironmental considerations are an im$ortant influence on business beha(iour6 $articularl* for the large com$anies. It is argued that businesses ha(e a dut* that goes be*ond the organi4ation and to a cor$orate social res$onsibilit*6 $articularl* 2ith regard to the en(ironment. ACor$orate social res$onsibilit* means that a cor$oration should be held accountable for an* of its actions that affect $eo$le6 their communities and their en(ironmentB -,ob Watkins6 .//06 $C).1. 3.2 The ne2s article is about the ecological im$act the ! oil s$ill caused to the 2aters6 this article concerns that of south of Ne2 "rleans6 &# coast guard re$orted seeing an area of discoloured 2ater 2hich could be from the oil s$ill.. "(erall this disaster has had negati(e im$acts on the en(ironment and also the com$an* shares and $rofits had fallen dramaticall*. The discharge of oil s$ill on the 'ulf of De3ico has also had ma8or health concerns. 3.3 %n(ironmental disasters can cause the go(ernment to get in(ol(edE the go(ernment tend to im$ose hea(* $enalties 2hich often ha(e unfortunate conse<uence for the com$an*. +ll countries ha(e en(ironmental la2s and $olicies based on a regulator* regime im$osed b* go(ernments at different s$atial le(els -%conomics for business6 Ian Worthington6 Chris ritton6 +nd* ,ees !43)1. 3.4 %n(ironmental factors can ha(e conse<uences on small firms that o$erate 2ithin the affected areas. For e3am$le the article states s that A local fishermen ha(e re$orted seeing mileslong strings of 2eathered oil on the seaB. This disaster can affect animals and their habitats in the sea and thus can ha(e negati(e im$act on local fishermen9s su$$l* and li(elihood.

'. E( to aunch )oog e search in*estigation

4.: The legal factor is another influence from the !%#T7% anal*sisE usinesses o$erate 2ithin a frame2ork of la2 2hich has a significant im$act on (arious as$ects of their e3istence -,ob Watkins6 .//0 !g ::1. This article states AThe %& launched a formal in(estigation into

'oogle follo2ing allegations that the internet giant has abused its dominant $osition in the search and ad(ertising marketB. Clearl* the e3ternal factor here concerns mono$ol*6 mono$ol* is defined as AB. The mono$olist has considerable market $o2er and can determine $rice or <uantit* -The usiness %n(ironment6 ,ob Watkins6 .//01.
4.. The $roblem 2ith mono$ol* is it disru$ts the free market because it creates a dead 2eight loss. Fead 2eight loss is defined as Athe loss of consumer $lus $roducer sur$lus in im$erfect marketsB In this case for e3am$le if 'oogle manage to mono$oli4e the ad(ertising industr* this 2ill ha(e serious conse<uence on businesses tr*ing to establish themsel(es as 'oogle 2ill be able to $rice ho2 much the* 2ent to ad(ertise a com$an*

The $roblem 2ith mono$ol* is it disru$ts the freemarket because it creates a dead 2eight loss "nce u has market domination in that field the business can do 2hate(er the* 2ant and don9t inno(ate because the* don9t need to Can act as an incenti(e

+eference Worthington6 I.6 ritton6 C. +nd ,ees6 +. -.//:1 %conomics for usiness6 Blending Theory and Practice -%sse31G !earsons %ducation 7imited htt$GHH222.cit*am.comHne2s-and-anal*sisHnintendo-hit-high-*en-takes-its-toll-business http://www.guardian.co.uk/technology/2010/oct/29/tube-wifi-charing-cross http://www.guardian.co.uk/technology/2010/nov/30/google-search-eu-investigation http://www.guardian.co.uk/environ ent/2010/nov/09/oil-spill-in!uiry-culture-co placency-bp

http://www.independent.co.uk/news/world/a ericas/water-to-be-tested--for-oil-fro -bp-spill211"#"$.ht l

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