Orange_Electronic_Company Essay Example | Topics and Well Written Essays - 500 words

Orange_Electronic_Company - Essay Example In analyzing the environment, the orange company limited needs to know both its internal and external environment that relates to their business. An efficient tool for carrying out an environmental analysis is the PEST tools which looks at the Political, Economic, Socio-cultural, and Technological tool. It looks at how these aspects affect the company’s business directly or indirectly. This aspect forms the macro environment of a company. To examine the political factors, a study must be conducted to look at the various regulations and codes imposed on various industrial sectors that may affect negatively or positively the organization. Other political, environmental aspects are political stability, market regulations and taxes in a particular country of establishment (Hepburn, 122). Economic factors are analyzed by evaluating both national and international economic rules that might have an impact on the market. Sociocultural factors include the culture of a place within the market and how it has an affects the market. For instance, restrictive cultures have a negative impact compared to open cultures which have more benefits. Lastly, technology is an important aspect to look at as the development in technology will enable an organization to flow with new developments as they arise. The microenvironment is the internal factors that the organization can control to suit their needs. The internal environment consists of customers, suppliers, employees, competitors, shareholders, and the media. The company can adjust its services in a way that all these aspects will enable their business become successful. For instance, the company can manufacture products that meet the needs and wants of their customers to retain and attract customers. Competitors will affect the plan, as price adjustment will be necessary to suit the demand curve. The employees must be few at the beginning to cover the initial