Question

Identify 3 or more external environment key drivers that will provide opportunities or threats for a business administrator (secretary, administrator, assistant, etc.). You can use PESTEL (political, economic, social, technology, environment, and legal) to help.

Answer 1

The key drivers of external environmental drivers to provide opportunities and threats for an administrator in a business organization are explained by the PESTEL Analysis. The PESTEL Analysis is explains the external environmental factors that determines the Threat or Opportunity for the administrator in the organization. Some of the common external factors are given below:

Political factors

While creating business strategy, the organization should consider the political environment of their country. The political environment means that the environment created in region due to government policies and also the instability and the risk of current political factors. The unexpected loss of ownership may occur because of changes in labor laws and government takeover (nationalization), or the increase in the cost of the company's workforce. In this way if the political environment of the country is healthy and supporting to industry then there is lot of Opportunities in the Organization. In the same way if the political environment is not healthy then there are many threats for the organization. Following are some of the Political factors are affecting the external environment:

• The Taxation Policy
• The Trade regulations
• The Governmental stability
• The Unemployment Policy, etc.
• The political stability

Economic factors

The economic factors in the regional business environment are all the variables and that gives impacts on the consumers and decide that how they spends their money. The purchasing power of people in that region is also dependent upon such factors. An important factor of the economic development of a country is decided by scanning the economic environment of those Countries. This is the only factor that categorized the countries as either 'developing' or 'developed' countries. The country’s exchange rate give an extensive impact on the profitability of a business. An organization consider the extra financial information including current rates, taxes etc. in the economy of the country. Some of the economic factors are stated below:

• The Interest rate
• The Inflation rate
• The Growth in spending power
• The Rate of people in a pensionable age
• The Recession or Boom
• The Customer liquidations
• The Balances of Sharing

Socio-cultural

The socio-cultural environment senses the demographic characteristics that effect the current business environment. It looks at the customs, values and norms of the environment. In this environment the company or the organization is placed. The importance of the socio-cultural environment is to consider the social values of the environment. The society’s cultural characteristics and all values and customs that are often associated with the culture while they try to market and sell the product or service, i.e:

• The values, beliefs
• The language
• The religion
• The education
• The literacy
• The time orientation
• The life style.

Technological factors

The technological environment is very important in the modern days of business environment. New opportunities are produced by the new technology for the companies and organizations to produce, sell and promote a product. Technology is fast growing and fast changing. Telecommunication technology such as: laptops and cell-phones are increasing the opportunity within an organization for the sales promotion of a product. The internet has made it possible by providing information available to the consumer to easily compare the prices of a product or service with the price of the competitors, in that area, of the same product or service. Through the internet opportunities have increased in the market for the product or service due to the use of social media. Some of the examples for technological developments are mentioned below:

• The Internet
• The E-commerce
• The Social Media
• The Electronic Media
• The Research and Development
• The Rate of technological change

Environmental factors

The PESTLE analysis include the Environ Factors considering the natural resources that are affected by the processes of sales and marketing of the products or services. The utilization of recyclable and biodegradable packaging material by a business organization, is making the many of the environmental opportunities to create a sustainable organizational in the existing natural environment of current scenario. Some of the effects of Environmental Factors are given below:

• The Competitive advantage
• The Waste disposal
• The Energy consumption
• The Pollution monitoring, etc.

Legal factors

The laws and regulations of a state are included in the Legal Factors. The laws and regulations do influence an organization that will affect the sales or marketing of the product and services. Trade agreements between different governments and states are influenced by the legal factors. Some of laws are listed below:

• The Employment law
• The Health and safety
• The Product safety
• The Advertising regulations
• The Product labeling
• The Labor laws etc.

With the help of above mentioned external factors the Opportunities and Threats can be analyzed for administration staff of an organization.