Outline how changing external influences affect organizations

June 5, 2018 Business

This report consists of analysis of three different new articles of indicating firms with different issues which have been affected by different external influences and what impact on the firm and the activates which they are involved in. External influences are something which a firm has to think about as it can cause considerable changes to the firm. How the firm changes depends on the business the firm is involved and by what type of influence it is being affected by. External influences can be filtered through four different contextual influences which are known as political, economical, social and technological.

The political influence can be something as a government passing new laws which can affect a firm and how it runs. The economical influence can include something such as changes in rates or inflation. Social influence is a matter of when people start to change their views and this can affect firms and business in a different ways such as a consumer trends. Technological influence could be something as new technology being introduced to the firm, the firm has to adapt to this new technology for it to develop or when it cannot adapt to the new technology which has been introduced and the firm start find hard to operate with new technology.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

These articles which have been analysed using the PESTEL technique, this technique has been used because it is very simple and on the other hand it is very affective to use this technique allows you to look at a firms external issues more in depth and gives you a better understanding. Samsung Galaxy Tab ‘does not copy Apple’s iPad designs Apple and Samsung being two of the biggest titans in the electronics market therefore this causes these two companies to be two of the biggest rivals in the market.

The first article shows that the court ruled against Apples favour stating that Samsung did not copy Apple’s I-Pad designs in building its Samsung Galaxy tab. Also that apple has to publicise that the two designs are different from each other. Apple has appealed against this decision and wants to fight on. Because of this decision Samsung has gained leverage against Apple. All of this shows that Samsung has a lot of potential and this could lead to apples fall in the market. This issue is affected by the legal factor and this could dissolve Apples stake in the tablet market from being a monopoly to sharing its lead with Samsung.

Also because the decision which was made in court will cause a lot of uncertainty in the industry therefore it could cause a decrease in Apple’s sales which could affect their profit. Because of this lawsuit which has been going on for some time between Apple and Samsung and the court being in Samsung’s favour can cause Samsung to gain shares in the tablet market and Apples shares start to decline. The third article acknowledges Comet and its closing down sales for its 30 stores and its administrators preparing for redundancies among its store staff.

It also shows that the accountants at Deloitte have been looking for buyers to sell the electrical chain. Because of the collapse of this chain it has put 6600 jobs under threat and has already cut 330 jobs across its head office and support centres because the failure to find buyers for the whole business it is predicted that the privately owned electrical group Maplin is expected to expand its stake in the electrical market through picking up some stores. Comet closing down sales to start on Saturday Comets failure came in about nine months ago when it was taken over by an investment firm OpCapita, which bought comet for a nominal ? 2 in February. The retailer came with a ? 50m dowry from it stock exchange listed parent Kesa but the new venture struggled from day one this is because suppliers were unable to secure credit insurance to protect them should it fail. Despite this failure the investment company OpCapita is still on course to make a multimillion pound profit from this deal. This issues is affected by the economical factor this is because of the double dip recession has caused the loss of customers due to everyone cutting their spending costs which has affected their trade.

Also the fact that if they do not find a buyer, it will lead to job cuts and this could affect the UK economy. This is because UK has just started to recover from unemployment and this could raise unemployment levels again. It will also affect the economy because with more unemployment less people will have less money to spend and by people spending money boosts up the economy because of taxes also other business will be affected because they will have to cut down there prices to sell their products and this can lead to deflation.

EE launches UK’s first 4G mobile network The second article shows that EE has launched UK’s first 4G network and that Britain will catch up with over 40 other countries when the network will be switched on, also promising internet connections several times more than the average speed of current 3G services for smartphones and tablets. The company behind the EE network is T-Mobile and Orange. The network will be going live in 11 British cites and will be 6 months ahead other UK networks.

Customers who going willing to sign up for a contract with EE are being promised between 8 and12 megabits speeds which is as fast as a average home broadband connection meaning activates such has video calling, live online gaming and watching movies in HD will no longer will be a slow and annoying experience One of the external influences which are affecting this issue is the technological factor this is because EE has launched the 4G network 6 months before all there rivals which gives them the upper hand in the market.

This is because it will give them time to grasps a firm place in the market, have time to do more research so they will be able to fix up in glitches before the other networks would have launched there 4G networks. Also they will have enough time to gain many customers who are willing to sign up for a 4G network. Conclusion Overall, business, regardless of what sector and what market they are involved in, external influences will always cause for concern.

The legal influence has caused Apple to lose stock and shares in the market that they are in. the economical influence has caused comet to go out of business and make a big loss. The technological influence has caused EE to have an upper hand in the market and also has gained a big lead and left other networks to catch up with them. References


I'm Amanda

Would you like to get a custom essay? How about receiving a customized one?

Check it out