Organisational Strategy & Business Ethics

Organisational Strategy

There are lots of definitions of strategy. Above all, the general meaning is a long term plan and goal of organizations.

PESTLE is an analysis method for organisations through external environmental factors. It is because some organizations are easily changed by these factors. PESTLE analysis provides 6 main elements of macro- environment, which are political, economic, social, technical, legal and environmental. Let me discuss more specifically about each element.

First of all, I would talk about political factor, which is local of different country; include the changing of political at local, regional, national, the international level of the country, changing in legislation, kinds of laws, government stability……

Secondly, economic factor is an important element of business. It is analyzing the economic environment of organizations. It concerns interest rates, inflation rates, exchange rates, unemployment, fixed and variable business costs, energy costs, state investment and effects of changes in labour and product market.

Thirdly, social factor means the local culture, values, lifestyle, the attitudes of working and leisure, education, health, distribution of income and demographics. There would affect the market of the organization and incomes.

Moreover, technological would seriously affect some kinds of organizations, such as design, produce and distribute goods or services organizations. New production methods may run of time quickly. Communication methods may become more perfect and convenient with higher IT developments.

Otherwise, legal factor is mainly talk about laws. The changing of law, government policy employment and safety law and environmental laws, which limited and safeguard the development of organizations.

Lastly, environmental factor is a limitation of the organization acts. It is because the organizations must care about the green issues and protects the environment.

SWOT analysis is a method to understand the situation of the organization. There are 4 parts which is Strengths, weaknesses, opportunities and threats. The understanding of the organization is very important for the owners and shareholders. It is a common management analysis method.

Business Ethics

The definition of business ethics are moral principles that guide the way a business behaves. The same principles that determine an individual’s actions also apply to business.