Macro environmental factors that affect firms

Macro environmental factors that affect firms These factors are not within the control of management of business but still affects the business up to large extends. These factors are almost uncontrollable. The organization has to fit into this environment to survive in this competitive scenario. These factors of macro environment also affects the factors within the organization i.e. factors of micro environment. There are many factors in the macro-environment that will affect the decisions of the managers of any organization in this whole world. Tax changes, new laws, trade barriers, demographic change and government policy, political changes are all examples of macro change. To analyze these factors managers can categories them using the PESTEL model. Political factors: This refers to government policy, For example: the degree of intervention in the economy. What goods and services a government wants to provide? Up To what extent does it believe in subsidizing firms? What are its major priorities in terms of business support? Political decisions can impact on many vital areas of business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system. Economic factors: This includes interest rates, taxation changes, economic growth, inflation and exchange rates. For example: Higher interest rate may deter the investment because it costs more to borrow. Inflation may provoke the higher wage demands from employees and raise costs. Higher national income growth may boost the demand for a firms products. Social factors: Changes in social trends can impact on the demand for a firms products and the availability and willingness of employees to work. For example: In the UK, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staffs are living longer. It also means some firms like ASDA have started to recruit older employees to tap into this growing labor pool. The ageing population also has impact on demand. For example: Demand for sheltered accommodation and medicines have increased whereas demand for toys is falling. Technological factors: New technology creates new products and new processes. MP3 players, computer games, online gambling, i-pods and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way the businessmen do business as a result of better technology. Technology can reduce costs; improve quality and leads to innovation. These developments can benefit consumers as well as the organizations which providing the products. Environmental factors: Environmental factor includes the weather and climate change. Changes in temperature can impact on many industries which include farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness these external factors are becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries like the travel and transportation industries (For example: more taxes being placed on air travel and the success of hybrid cars.) and the general move towards more environmental friendly products and processes is affecting demand patterns and creating business opportunities. Legal factors: These are related to the legal environment in which firm operates. In recent years in the UK there have been many beneficial legal changes that have affected firms behavior. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of the recent laws that affect an organisations actions. Legal changes can affect a firms costs and demand. IMPORTANCE OF BUSINESS ENVIRONMENT Firm to identify opportunities and getting the first mover advantage: Early identification of opportunities helps an enterprise to be the first to catch them instead of losing them to competitors. For example: Maruti Udyog became the leader in the small car market since it was the first to recognize the need for small cars in India. Firm to identify threats and early warning signals: If an Indian firm finds that a foreign multinational company is entering the Indian market it should gives a warning signal and Indian firms can meet the threat by adopting, by improving the quality of the product, reducing cost of the production, engaging in aggressive advertising, and so on. Coping with rapid changes: All sizes and all types of industries are facing increasingly dynamic environment. In order to effectively cope with these significant changes, managers must understand and examine the environment and develop suitable courses of action. Improving performance: The enterprises that continuously monitor their environment and adopt suitable business practices are the ones which not only improve their present performance but also continue to succeed in the market for a longer period of time. THE ORGANISATIONAL EXTERNAL BUSINESS STRATEGY By using the PESTEL framework a manager can analyze the many different factors in a firms macro environment. However, it is important not to just list PESTEL factors since this does not in it tell managers very much. What managers need to do is to think about which factors are most likely to change and which will have the greatest impact on them i.e. each firm must identify the key factors in their own environment. Managers must decide on the relative importance of various factors and one way of doing this is to rank and score the likelihood of a change occurring and also rate the impact if it did The higher the likelihood of a change occurring and the greater the impact of any change the more beneficial this factor will be to the firms planning. External Strategies of different organization Economic factors :- Vodafone: The growth of Asian countries like India and china, have had massive effects on Vodafone. Vodafone can relocate production there to benefit from lower costs; these emerging markets are also providing enormous markets for them to aim their product at. With a population of over 1 billion, for example, the Chinese market is not one that anyone would want to ignore, at the same time Chinese producers should not be ignored either. Social factors :- McDonaldà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s: Important strategic decisions are a key factor to Mac Donaldà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s success with consideration for both internal and external factors. When considering the foreign market, companies need to consider there are risks. There must be local marketing to appeal to the local consumers and also to build relationships and trust (Bateman Scott, 2004). Therefore, the strategic planning for marketing has to be effective enough. McDonaldà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s caters its menu in other countries to the cultures of the regions. For example, in India, the non-vegetarian menu includes chicken and fish items only. Beef is not on the menu in India because are considered sacred. Political-legal factors:- American auto makers, the electric car and California: Electric cars For whatever reasons, several of the auto manufacturers in the USA began developing which they leased to satisfied customers. Then, California decided that it would be a good idea to mandate to American auto makers that if they expected to sell their cars in California they would have to invent some new technology reducing carbon dioxide. Presumably, California expected to see an increase of the electric cars being sold by auto makers. What happened is quite the opposite and the auto makers took a hard look at their electric car program, uncertain how to market a clean vehicle without admitting the piston engine vehicles are dirty, realizing that much of the profit from a piston engine vehicle comes with the replacement of the parts and not so with electric cars and finally, realizing that a State, not even the State of California can make them build technology they dont have, nor can any state even make them keep b uilding the technology they do have, and so, the auto makers killed their own electric car program and this was the impact of a political-legal environment. Technological factors:- NOKIA: The starting models of Nokia had some technical problem with battery backup. People who were using those handsets often complain which had spoil the reputation of the Nokia completely. The sales and market price of Nokia fell down drastically. Then management took serious consideration to these problems, and modifies all the handset with latest technology. Nokia had been successful to regain the trust of its consumers and as a result it enjoys monopoly in market. Environmental factors:- Tesco: In 2003, there has been increased pressure on various companies and managers to acknowledge their responsibility to society, and act in a way which benefits society overall. The main societal issue threatening food retailers has been environmental issues, a key area for companies to act in a socially responsible way. Hence by recognizing this trend within the broad ethical stance. Tescos corporate social responsibility is concerned with the ways in which the organization exceeds the minimum obligations to stakeholders specified through regulation and corporate governance. Graiser and Scott (2004) states that in 2003 the government has intended to launch a new strategy for sustainable consumption and production to cut waste reduce consumption of resources and minimize environmental damage. The latest legislation has created a new tax on advertising highly processed and fatty foods. The so-called à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€¹Ã…“fat tax directly affected the Tesco product ranges that have subsequently been adapted and affecting relationships with both suppliers and customers.

Satire in Moliere’s Tartuffe, Voltaire’s Candide, and Swift’s A Modest

The Merriam-Webster Dictionary defines satire as: â€Å"literary work holding up human vices and follies to ridicule or scorn.† Besides this definition satire can also be seen as the particular literary way of making possible the improvement of humanity and its institutions. In the three works: Moliere’s â€Å"Tartuffe,† Voltaire’s â€Å"Candide,† and Swift’s â€Å"A Modest Proposal† the authors indirectly criticize and ridicule human behavior and characteristics but with the goal for improving these faults rather than just demolishing them.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In Moliere’s â€Å"Tartuffe,† although many things and behaviors are satirized, the play focuses mainly on the issue of religious hypocrisy. Whereas Tartuffe is the obvious hypocrite and antagonist who represents those members of society who preach religious piety but do not themselves live by the morals they try to force upon others, Orgon is the complex character through whom this religious hypocrisy is channeled. In the beginning of the play it is hinted that Orgon is perceived as an honorable and respected man by his family and friends, but then through out the play the question raises why he has become such an absurd and unusual person. It seems that Orgon is the type of character who can no longer participate successfully in society and who then retires from society and attacks it. This can also be seen in his mother, Madame Pernelle. Orgon, having reached late middle age, needs to attach himself to a religious person, who beli...

Alternative Obligation Essay

GENERAL RULE: The right to choose belongs to the debtor/ obligor Except: When the right has been expressly granted to the creditor Right of choice of debtor not absolute. LIMITATION ON THE DEBTOR’S CHOICE (1) The debtor cannot choose those prestations which are (a) impossible , (b) unlawful ,or (c) which could not have been the object of the obligation. (2) Only one prestation is practicable (3) The debtor cannot choose part of one prestation and part of another prestation. (Art 1199) Communication of notice that choice has been made * The debtor must choose and communicate his choice to the creditor. * The alternative obligation will be converted into a simple obligation * The proof and form of notice may be made by orally or in writing, expressly or implied. Effect when only one is practicable * The debtor loses his right of choice when only one alternative prestation is practicable of performance. When debtor may rescind contract * If the debtor could not make a choice due to the creditor’s act of making prestations impossible, debtor may RESCIND the contract with damages. Rescission creates the obligation to return the things which were the object of the contact together with their fruits, and the price with its interest. * If the debtor is being prevented to choose only a particular prestation, and there are other available, he is free to choose from them, after notifying the creditor of his decision The effects of loss or impossibility of the alternative prestation BEFORE the right of choice is exercised. * Once the debtor has communicated his choice of alternative prestation to be performed to the creditor, the obligation becomes simple * If the chosen alternative is lost without the fault of the debtor, the obligation will be extinguished. * If the chosen alternative is lost due to the fault of the debtor, the obligation will be converted into monetary consideration in the form of damages. * Effect if one or some of the alternative prestations in the alternative obligation are lost BEFORE the debtor has communicated his choice to creditor * The consequence will really depend upon whether the right of choice was given to the debtor or to the creditor. A. When the right of choice belongs to the DEBTOR * If the loss is due to FORTUITOUS EVENT a) If all alternative prestation are lost, the alternative obligation extinguished. (Article 1174) b) If two or more alternative prestations remain, the debtor can still exercise his right of choice and choose from any remaining alternative prestation(Article 1200) c) If only one of alternatives remain, there is no more alternative obligation but only a simple obligation. * If loss is due to DEBTOR’s FAULT a) If all the alternative prestation are lost, the alternative obligation is converted into monetary consideration as indemnity for damages. The basis for the computation of the amount to be paid by the debtor will be the value of the last thing or service lost plus damages. b) If two or more of alternative prestation remain, the debtor can still exercise his right of choice and choose from any of the remaining alternatives (ART 1200) c) If only one alternatives remain, there is no more alternative obligation but only simple obligation. B. When the right of choice belongs to the CREDITOR * If the loss is due to a FORTUITOUS EVENT The effect s are the same as where the right of choice belongs to debtor * If the loss is due to DEBTOR’S FAULT a. If all the alternative prestations are lost, the alternative obligation is converted into monetary consideration as indemnity for damages. The basis for the computation of the amount to be paid by the debtor will be the value of any of object chosen by the creditor (because he is given the right of choice) plus damages. b. If two or more prestations remain, the obligation is still alternative . The creditor has the option to either: b. 1 choose from among the remaining alternatives b. 2 chose the lost object. The debtor will be then liable for the value of lost object chosen by the creditor plus the damages. FACULTATIVE OBLIGATION. * is one where only one prestation has been agreed upon but the obligor may render another in substitution * The right of choice belongs only to the DEBTOR * Once the substitution is made, the obligation is converted into a simple one to deliver or perform the substituted prestation. * The substitution also becomes effective only from the time the debtor communicates to creditor his choice to perform the substituted prestation. Alternative and Faculative Obligations Distinguised The differences are as follows : 1) Number of prestations Alternative- several prestation are due but compliance with one is sufficient. Faculative- only one prestation is due although the debtor is allowed to substitute 2) Right of choice Alternative- the right of choice may given to creditor or third person Faculative- the right to make substitution is given only to the debtor 3) Loss through a fortuitous event Alternative- the loss of one or more through a fortuitous event does not extinguish the obligation Faculative- the loss of the thing due extinguishes the obligation 4) Loss through fault of debtor a) Alternative- the loss of one through the fault of debtor does not render him liable. Faculative- the loss of the thing due through his fault makes him liable b) Alternative- where the choice belongs to the creditor, the loss of one alternative through the fault of the debtor gives rise to liability. Faculative- the loss of the substitute before substitution through the fault of the debtor does not render him liable. Effect on loss of the thing in Facultative Obligation BEFORE SUBSTITUTION * The debtor is not liable if the substitute prestation is lost whether due to his fault or to a fortuitous event. * If the original prestation is lost by virtue of a fortuitous event, the obligation is extinguished. AFTER SUBSTITUTION * The debtor is not liable if the original prestation is lost whether due to his fault or to a fortuitous event. * If the substitute is lost, the liability of the debtor depends upon whether or not the loss is due to his fault. FACULTATIVE OBLIGATION * is one where only one prestation has been agreed upon but the obligor may render another in substitution * The right of choice belongs only to the DEBTOR * Once the substitution is made, the obligation is converted into a simple one to deliver or perform the substituted prestation. * The substitution also becomes effective only from the time the debtor communicates to creditor his choice to perform the substituted prestation. Alternative and Faculative Obligations Distinguised The differences are as follows : 5) Number of prestations Alternative- several prestation are due but compliance with one is sufficient. Faculative- only one prestation is due although the debtor is allowed to substitute 6) Right of choice Alternative- the right of choice may given to creditor or third person Faculative- the right to make substitution is given only to the debtor 7) Loss through a fortuitous event. Alternative- the loss of one or more through a fortuitous event does not extinguish the obligation Faculative- the loss of the thing due extinguishes the obligation 8) Loss through fault of debtor c) Alternative- the loss of one through the fault of debtor does not render him liable Faculative- the loss of the thing due through his fault makes him liable d) Alternative- where the choice belongs to the creditor, the loss of one alternative through the fault of the debtor gives rise to liability. Faculative- the loss of the substitute before substitution through the fault of the debtor does not render him liable. Effect on loss of the thing in Facultative Obligation BEFORE SUBSTITUTION * The debtor is not liable if the substitute prestation is lost whether due to his fault or to a fortuitous event. * If the original prestation is lost by virtue of a fortuitous event, the obligation is extinguished. AFTER SUBSTITUTION * The debtor is not liable if the original prestation is lost whether due to his fault or to a fortuitous event. * If the substitute is lost, the liability of the debtor depends upon whether or not the loss is due to his fault.

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