The first part will give a description of and analyze the primary internal and external influences which affect the organization (Siemens). The second part has to do with current changing competitive environment which the organization has to face.
Since organizations do not operate in vacuum and the productivity of an organization is always linked to certain factors which in this case are called influences, it is important for an organization to know what those influences are. Influences can be both internal and external and this report will try to analyze both types since both are equally important. Apart from an analysis of the primary influences on an organization we will also analyze the effect these influences have on Siemens.
This technique is an updated form of PEST analysis it stands for Political, Economic, Social, Technical, Environment and Legislative. It analyses the external influences on a business. PESTEL can help understand market growth or decline, business position, and future potential and direction for operations. (Barkema and Vermeulen, 2005)
One of the major costs of doing a business is of obtaining raw materials. Suppliers are those entities that supply an organization with that vital component. ...