Writing a business strategy is an essential aspect of starting and running a business.
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student 1
Writing a business strategy is an essential aspect of starting and running a business. Without a clear strategy, it is difficult to set meaningful goals and objectives. In determining your business strategy, a logical analysis of the environment in which you operate will both inform and influence the outcome. This analysis – commonly called PESTLE, for political, economic, sociological, technological, legal and environmental – paves the way for identifying opportunities and threats, and effective business planning.
Political and Legal Factors
Political factors include how regulations and policies imposed by your national or local government might affect the way you conduct your business. For example, import and export tariffs may make it difficult or uneconomical to do business with certain countries. At a local government level, there may be restrictions on the kind of businesses permissible in certain locations, while in certain sectors of the economy, lobbying may be more or less prevalent.
Economic Factors
The strength and performance of the local, national and international economy can all impact a business, presenting both opportunities and threats. Different types of taxation and other duties can also hit your bottom line hard, so a deep understanding of the fiscal environment is essential in order to prepare viable financial forecasts.
Sociological Factors
Sociological attitudes and profiles are constantly changing. Developing a demographic profile of your consumer base will help you understand what motivates them. Keeping abreast of issues such as gender bias, ethnic origin and religion, as well as being conscious of social norms and lifestyle expectations, can help you with your marketing strategy.
Technological Factors
The only thing permanent about technology is change. With advances in technology developing at a seemingly unstoppable rate, keeping up-to-date with changes could help you develop a market advantage in the face of competition. Technological change is most evident in how we communicate, with smartphones and tablet computers becoming commonplace. As a business owner, you should look at ways to harness technological potential to identify and service new and emerging markets.
Legal Factors
Businesses across the world operate in a web of legal obligations and restrictions. Some of these relate to internal obligations such as those dealing with health and safety, while others have a wider impact on matters as diverse as waste and environmental management, import and export restrictions and or consumer protection laws. As part of your PESTLE analysis, you should develop a broad knowledge of all legislation that impacts your business to minimize the risk of non-compliance leading to litigation.
Environmental Factors
Environmental concerns have become important in recent years, with the wider impact of doing business increasingly recognized by consumers as a factor in their buyer behavior. Responsible business owners should look for ways to minimize the environmental impact of their operations. For example, many businesses are looking for ways to lower the impact of their energy consumption. The positive effect of a responsible environmental attitude is that it may attract new customers who prefer to purchase more ethically derived products.
References:
https://smallbusiness.chron.
student 2
Some of the key environmental variables that are changing communication in the business world is the ever-advancing technology and differences today even from a little over a year ago. The first is that as new technology and inventions come out, communication adapts to different methods for example, I remember a time where things such as school cancelations had to be over the radio or the tv news. As I grew up texts were sent to the kids in my high school alerting us if we had a delay and it was posted to social media. By the time I was a senior the school never even turned the canceled days into the news because it was faster and more dependable to text it to the students and parents. Now that I am in the work force I still see a quickly evolving method to communication. When I first started everything was done by email and when I got a younger boss it shifted to relying on text messages alone so that the messages would be faster and in a manner that the employees where more familiar with in a way that was informal that made communication even faster. Then when the COVID lockdowns started almost all communication went to text messages and phone calls to limit the amount of Wi-Fi demands on employees. This was now a consideration for the supervisors as people were working from home and most meetings were done on video conference calls which revealed how many people have pretty slow internet.
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