AS90844: EXternal pressures on A Large Business STEEPLE political influences (changes to government policy, trade unions and employer associations)

External Environment External Environment – everything outside of a businesses control Businesses need to adapt to changes in the external environment Businesses that adapt too slowly lack sustainability (social, economic, cultural & environmental) If external events are not taken into consideration it can lead to poor decision making

Steeple ANALYSIS Understand the wider factors in the business environment Social Technological Ethical Environmental Political Legal Economic Collecting information about these external areas How they affect the businesses internal operations How they affect the overall objectives Identifying how businesses should respond

STEEPLE ANALYSIS: WETA WORKSHOP Workbook pg 62 Societal Factors WETA Group: Fantasy & Sci Fi popular genres Technological Factors WETA Group: New software allows efficient production Economic Factors WETA Group: Grants available for Film Production companies in NZ Political Factors WETA Group: NZ Govt very pro business and foreign investment Legal Factors WETA Group Intellectual property law similar ot other film producing nations – US / India Ethical Factors WETA Group: Controversy over employment law exploitation of film workers

Political influences Political policy comes from ideology Political belief pro business (private ownership) in NZ Policies affect business – subsidies and taxes for business

Political changes Governments can change policies as the best way to manage society and the resources within. This may directly or indirectly affect businesses Taxation and Government spending Subsidies, duties and tax break

Government Influence Support Business Constraint against business Grants in less developed areas Advice Subsidies for key industries Protection against foreign competition Finance for key failing industry Constraint against business Taxation Legislation – goods and service and ways of doing business Licencing Competition Laws – anti monopoly

Business Responses A business has to respond to the changes a government may implement. Changes may affect the business internal operations E.g. tax increase lead to increase in costs – to offset a business may need to make redundancy Bigger responses may lead to a change in direction or strategic objectives

fINALLY……. Key Terms Workbook reference STEEPLE analysis Subsidies Taxes Policies and Legislation Local National Government Government spending Pages 60-62, 71-73