Global Business Essay Example | Topics and Well Written Essays - 1750 words

Global Business - Essay Example The weaknesses and threats on the other hand arise from the external environment and the business may not have any control over such. The business must therefore implement specific policies to streamline its operations with the view of maximizing profitability based on the above. PEST analysis on the other hand investigates political, economic, social and technological factors that affect the operations of the business. Table of Contents Executive summary 2 Table of Contents 3 PEST Analysis 4 PEST analysis for the newspaper industry in developed economies 5 SWOT Analysis of The Guardian 6 Strengths 6 Weakness 7 Opportunities 7 Threats 7 Field Force Analysis for the newspaper industry in the developed world 8 The Indian Newspaper industry 9 References 10 PEST Analysis PEST analysis is a management tool that analyses the macro economic factors that affect the operations of a business in any industry and market. The tool that investigates social, economic, social and technological facto rs provides a realistic survey of any market by analyzing all the potential sources of either opportunities or threats that influence the operations of the business. Political factors are fundamental since politics influence the legal factors that influence the market. ... Such present businesses with operational challenges as the populace turn against each other thus instigating looting and massive destruction of establishments. In such a country, a business may consider seeking insurance services against political violence. This way, politics creates market for other service providers while threatening others. Similarly, social, economic and technological factors also create and destroy markets thus influences the viability of a market. Technology influences both productivity and consumption of product. The prevailing technological factors will therefore influence the consumers thus creating markets for particular products and services while threatening the viability of other markets. Such social factors as religion and cultures equally influence the consumption of certain products and services thus creating potential markets for specific products while eliminating the possibility of selling particular products in such regions. The entrepreneur must therefore employ the PEST analysis continuously to align the operations of the business and the production process to the prevailing factors thus achieving the profitability objective (Homburg, Sabine & Harley, 2009). PEST analysis for the newspaper industry in developed economies Developed economies such as the United States of America have effective democratic system implying that the markets in the countries enjoy stability and peaceful environments for operations. Besides the conducive environments, the presses in the countries enjoy a degree of freedom and independence that opens the market for any willing investor. With effective leadership, the populace enjoy myriad freedoms with the governments often