BUSINESS METHODS Essay -- essays research papers

BUSINESS METHODS PEST (Political, Economical Social and Technological environment ) Analysis The external environment of any organisation / university / faculty / department etc. can be analyzed by conducting a PEST analysis. The acronym PEST (sometimes rearranged as STEP) is used to describe a framework for the analysis a range of macro environmental factors including the Political, Economical Social and Technological environment. A PEST analysis fits into an overall environmental scan including the SWOT analysis and McKinsey’s 7S Model, which is briefly discussed below and also referred to in the document ‘Preparing a SWOT Analysis. For a unit (referring to any area under review be it an academic department, a research unit, an administrative unit or a support service unit), a PEST analysis should relate to: 1. The external environment outside of the unit but within UCC, and 2. The external environment outside of UCC, given the national and international profile of the office The PEST analysis provides the following simple framework: Political FactorsPolitical factors can have a direct impact on the way business operates. Decisions made by government affect the operations of units within the university to a varying degree. Political refers to the big and small ‘p’ political forces and influences that may affect the performance of, or the options open to the unit concerned. The political arena has a huge influence upon the regulation of public and private sector businesses, and the spending power of consumers and other businesses, both within UCC and outside of UCC. Political factors include government regulations and legal issues and define both formal and informal rules under which UCC and units must operate. Depending on its role and function within the university a unit may need to consider issues such as: †¢ How stable is the internal/external political environment? †¢ Will government policy influence laws that regulate third level educ ation? †¢ What is the government's policy on the education? †¢ Is the government involved in trading agreements such as the Bologna Agreement? †¢ The impact of employment laws †¢ The impact of environmental regulations †¢ Trade restrictions and tariffs †¢ Political stability (internally and externally †¢ Decision-making structures Economic FactorsAll businesses are affected by economical factors nationally and globally. Whethe... ...mple measures? †¢ A bias for action: a propensity to act, even in the light of incomplete information, rather than to engage in extensive discussion and analysis †¢ Close to the customer: listening to, learning from, and providing exemplary service for their customers -------------------------------------------------------------------------------- Page 5 †¢ Autonomy and entrepreneurship: fostering leaders and innovators throughout the organisation/department; encouraging practical risk taking and tolerating failure †¢ Productivity through people: respect for and validation of staff; recognition that staff are the source of quality and productivity gain †¢ Hands-on, value driven: led by executives that are ‘in touch’ with the essential aspects of the organisation; paying explicit attention to promulgating the organisations core values †¢ Stick to the knitting: operating primarily in fields of established expertise †¢ Simple form, lean staff: characterised by few administrative layers, and uncomplicated systems †¢ Simultaneous loose tight properties: a combination of centralisation and decentralisation; promoting individual autonomy within the boundaries of the organisations core values.