Environmental Factors Influencing National Australia Bank

Running head: THE BUSINESS ENVIRONMENT 1
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THE BUSINESS ENVIRONMENT 2
Introduction
Environmental scanning
Organization environment is made up of both internal and external environmental factors.
To determine the rate of development and also predict several factors that can affect or influence
the success of an organization, it’s important to carry out organizational scanning. Environmental
scanning can be defined as posing and utilizing information about certain events, patterns, trends
and relationships in a given organization internal and external environment. Environmental
scanning is a tool to enable managers in making decisions concerning the future of their
organizations. It’s a process that helps in identification of possible threats and opportunities that
exists within that environment the business has been set up. (Vascellari, 2004)
Ways through which business conduct an environmental scan
when conducting an environmental scan, an organization can consider uses a two-phase model
phase 1:
 People
 Business
 Technology
Phase 2:
 Legal environment
Other organizations make use of the pestle model to conduct an environmental scan where
they study some of the environmental factors like political, economic, social, technological and
legal environment for a business.
Factors that influence the influence the environment in which businesses operate
1. Policy changes: policies are basic principles and guidelines that control how business
carry out their activities. They can be termed as declared objectives that organizations
seek to achieve so as to preserve the interest of their customers, staff and all relevant
stakeholders. Some policies may favor the environment under which an organization
operated while others may be unfavorably leading to the collapse of the organization.
2. Changes in government regulations: it’s the responsibility of every business to adhere to
and abide by the statutes which are the laws passed by relevant legislative agencies like
the government, state, and federals. When changes are made on these statutes, there is an
impact felt when it comes to the operation of a certain business or running organization
within such an environment. Such impact may be positive or negative.it depends on the
type of change made in the government regulation.
3. Changes in national and global macroeconomics indicators: global macroeconomic
indicators can be defined as Macroeconomic indicators are economic statistics which are
released periodically by government agencies and private organizations. These indicators
provide insight into the economic performance of a particular country or region and
therefore can have a significant impact on the Forex market. Change in these indicators
can influence positively or negatively the environment in which a business operates
depending on how the type of the indicator.