Question 1: The main objective of STEEP analysis is to examine the social-economical issues that will arise and affect a firm's decision making and performance (Preston, 2006). STEEP also ensures that company's performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985) and to find ways to decrease the negative effects and to take advantage of opportunities. STEEP is an acronym for: social, technological, economical, environmental, political components. According to Preston (2006); first is the sociological component; so every change in the structure of the country will affect the business and force companies to moderate to these changes. There are several changes that could occur to the society, like demographic changes within the ages or the structure of ICT created new industries and new markets, through hardware and software, so customers can purchase all their needs online; this is called e-commerce. Having the bases of a business operating on machines, the employees are trained to master the new systems. Economy is number 3. The economic analysis is based on the study of worldwide economy because the business is not only affected by the economy of the country that it operates within but by the world’s economy. Inflation, exchange rates and interest rates are three common factors that influence the business. Than we have the environment; where governments have imposed restrictions on businesses for pollution and these are under the name of legislation, but we also have the information aspect where companies provide annual
In order to find out what are some of the key drivers’ of the analysis I will further run different sensitivity analysis. I think some of the key drivers of our assumptions could be sales growth, production costs as a percentage of sales, inventories as a percentage of cost of goods sold etc.
The Internet is the future of business. Bring your company up-to-date and provide customers, not only with product descriptions and information, but with a way to shop, communicate and interact with your company via the web. The Internet also provides less chance for human error in the ordering process because fewer individuals have to handle information. And, most importantly, the Internet speeds up operations, whether it is use for sending information to employees or receiving custom orders from customers.
Information Technology (IT) is a foundation for conducting business today. It plays a critical role in increasing productivity of firms and entire nation. It is proven that firms who invested in IT have experienced continued growth in productivity and efficiency. Many companies' survival and even existence without use of IT is unimaginable. IT has become the largest component of capital investment for companies in the United States and many other countries.
which is under the conservative government. Economic factors changes include changes such as a recession creating activity at the lower end of the product price range. Also for instance the rate of interest rates rising depressing businesses. causing redundancies and lower spending levels. Social factors change include changing lifestyles and attitudes.
The development of the people these days had an affect in the development in the business world as well. People try to find the systems which can be use to help them in running the business for example to reduce the cost in running the business. Since 1950s the computer system had been use to cost.
Interpretation The graph 1shows the extraction of the components on the steep slope. The first 5 components are the part of steep slop. The components on the shallow slope contribute little to the solution. The components nine to nineteen are the part of shallow slop. The big drop occurs between the sixth and ninth components, so first 5 components are used for further analysis. The scree plot confirms the choice of six components.
Economic factors affecting negative or positive way the companies. The inflation and currencies rates have big influence.
One must look at the economic environment and how it will affect the launch of the product. One must look at:
In the beginning, businesses used information technology for automating the processes primarily to reduce labor costs. Subsequently, information technology is used for delivering information with speed and accuracy.
Some decisions prove to be vital and any miscalculation that may be involved may prove dire for the individual or the organization. In identifying the criterion to use while evaluating different decisions, many factors pertaining the structure should be considered. The pros and cons of every decision made should be evaluated to ensure that the option chosen has the most positive effect on the individual and the organization. Some of the activities that may require keen decision making include project development, finance and operations. With the knowledge attained it will be easier to cope with tough decisions that may come up in my career. Decision making models may be generated to give an in depth view to the problem and also provide critical analysis ability. It is also vital noting that for those in managerial positions, they face a bigger task in decision making. A good understanding of the business function and structure will provide an in depth knowhow to those that have studied the
Business today is inextricably intertwined with technology, from the smallest home office, to a multinational corporation with multiple monolithic legacy application. It is impossible to be in business today without confronting the issues of technology. The way we do business today is different than 30 years ago. Technology has evolved around the areas of telecommunication, travel, stock market, shipping even around our daily lives. E-commerce a system by which people can buy, sell and deal without even seeing the person on the other side has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking. The Internet, a boon to all business, is playing a part of a catalyst; it links millions of customers to its suppliers and vice versa due to this, manufactures are able to cut the role of middlemen and are able to deal with the customers, giving them the ability for direct input from the customers about their choices and views of their product. The busi...
It is important to recognise the main features that affect a business in view of the macro and micro-environmental factors.
Information technology is infiltrating all aspects of business, both large and small. Without it, a company will not be able to keep up with their competition. On the flip side of this theory however is the fact that information technology is cheap, therefore everyone had access to it. This in turn allows all the competition to have the same edge. This may work for a smaller company that has a good marketing campaign. Larger companies have always been able to succeed in the competitive market due to their ability to gain a foothold in the stock market and obtain funding that a smaller company may not be able to do. The ability to advertise allows these smaller organizations to become more lucrative simply by being recognized. A retail company that is willing to ship their products globally is in a position to increase their sales exponentially.
Advances in technology have changed businesses dramatically, in particular the communication and information technology that are conducted in firms, which changed the appearance and pace of businesses over the past few decades. ICT in particular, has evolved a lot over the past 30 years; important information can be stored in computers rather than being in drawers enabling information to be transferred at a greater volume and speed (Guy, 2009). ICT has also expanded various forms of telecommunications and workload conducted in businesses, internet examples of this include: e-mails can be used to communicate with others...
ICT helps me with an lot of my everyday routine and jobs that I need