Tag Archive: Theory


The external environment is the world in which the business operates, it is a large ever changing place made up of:

• Organisations
• Employers
• Suppliers
• Customers
• Other Stakeholders

A business can’t operate with being influenced by and impacting upon the external environment. A key success factor for any business is an accurate understanding of the external environment. A long-term analysis of what is happening in all areas of a business can be monitored, anticipated and dealt with accordingly. The external environment can be defined & analysed using on of the following:

• STEEP – Sociological, Technological, Economic, Environmental, Political
• STEP – Sociological, Technological, Economic, Political
• PEST – Political, Economic, Sociological, Technological
• PESTLE – Political, Economic, Sociological, Technological, Legal, Environmental
• STEEPLE – Sociological, Technological, Economic, Environmental, Political, Legal, Ethical
The idea is the same for all of the models; that there are several main external influences on a business.
The STEEP model uses the 5 headings listed above.

Sociological Factors:

These include demographic changes in:
• Age
• Structure of the population
• Patterns of work
• Gender roles
• Patterns of consumption
• Changes in culture

Technological Factors:

• ICT is lowering the barriers of time and place
• ICT creates new industries
• Many individual jobs and internal service functions have been transformed and are now largely or solely based on ICT systems.

Economic Factors:

• Rate of economic growth
• Interest rates
• Inflation rates
• Energy prices
• Exchange rates
• Levels of employment

The state of a country’s economy pervades all aspects of business life as it affects demand for goods and services, the availability and cost of resources (land, labour, materials & buildings). Both individuals’ and businesses’ behaviour reflects their expectations of economic trends. Governments use changes in the interest rate to try to achieve short-term in levels of demand, investment and spending. Global communication technology has resulted in very high levels of currency trading, which leads to a great volatility in exchange rates.

Environmental Factors:

These are of growing importance as people all over the world are very concerned about the impact of businesses on the natural environment. The following are factors that businesses need to consider:

• Legalisation – Environmental Legalisation is increasing, with the emphasis on pollution control and waste disposal. However there are regulations affecting packaging, transport and distribution and sourcing materials.
• Information – Businesses report regularly on their environmental performance.
• Employees – Employees are interested &concerned about the environmental credentials of their employers.
• Shareholders – Most shareholders of larger businesses are financial institutions who are driven by financial performance. However in several countries a category of ethical investors is emerging.
• Pressure Groups –In the late 20th Century there was a massive growth in pressure groups, most of which were established to deal with particular issues. Many of them broadened their membership bases and became a permanent part of the political scene; these groups include groups such as Greenpeace and Stonewall.
• Customers – There are opportunities for businesses that are operating to high environmental standards to gain market advantage.

Political factors

Political influences affect/most of what we all do. Here are only a few political factors for businesses:
• Legislation – This affects a lot of different aspects of business life. The CIPD (Chartered Institute of Personnel and Development).
• Trading Relationships – Examples of this are the World Trade Organisation and the European Union.
• Government- In many cases the Government is either the largest employer or purchaser of goods and services or in some cases the only customer.
• Public Services – Health Services, Education and the Police Force are all determined on political grounds.
• Taxation – This is a pretty big one for businesses.

The distinction between the factors defined in the STEEP model are rather artificial, this is because in reality the factors are often interlinked.

Over 50% of adults feel that school sciences lessons should teach both evolutionary theory and creationism alongside each other. The survey was carried out in 10 countries which were:

  • Argentina
  • China
  • Egypt
  • Great Britain
  • India
  • Mexico
  • Russia
  • South Africa
  • Spain
  • USA

Of those surveyed over 7,000 knew of Darwin’s work already. In the survey people were asked which statements were closest to their own opinion about how evolutionary theories should be taught in science lessons in schools. The highest proportion agreeing that evolutionary theories alone should be taught was in India, at 49%, followed by Spain (42%).

Darwinism is a controversial theory as it challenges religious explanation for life on earth. However it seems that alot of people feel that it is good to have the two opposing theories taught alongside each other which would suggest that society has progressed and nows feels that both theories are valid and have equal credibility. It shows a tollerance of differences, this could be due to the fact that due to immigration and now countries are becoming more multicultural, if you attempted to teach all of the religious theories it would take a very long time.

Research carried out by a Swedish research team suggests that well-educated woman have a positive influence on both their own and their partner’s chances of a long life. The statistics showed that a if the woman only has a school education then her partner had 25% greater chance of dying earlier than the man whose partner had a university education. It is thought that the reason for this is that educatated women are more likely to understand the health messages their family needs. When the roles are reversed it is the male’s income and social status that affect women’s lifespan.

One theory put forward is that women tend to take on the responsibility of feeding the family so a more educated woman will be more aware of better eating habits. It is also is thought women who are better educated tend to receive better healthcare and their partner benefits from this.

I don’t know if this is purely the case in Sweden where the research involved 1.5 million participants all of which were swedish; but I don’t really agree that the better educated women increase the life of the male. I think that it is simply a case of common sense that if you eat well and have an active lifestyle then you will in theory live longer. Plus is some scenarios due to having a high powered job I would have thought that their life may be shortened due to stress related illnesses.

During the early 20th Century an increased interest in leadership was noted, The early leadership theories focus on the qualities that distinguish leaders and followers. However subsequent theories explore other factors including situational factors and skill level. There are a number of leadership types the most common ones are:

  • The Great Man Theories:
    This theory assumes that leadership is hardwired, in other words people are born leaders rather than created. This theory portrays leadership primarily as a male quality.
  • Trait Theories:
    This theory has some ideas similar to those of the Great Man theory. Trait theory states that certain traits and qualities that make a better leader are inherited. This theory has one major flaw it can’t explain why some people have the qualities defined as leadership qualities but are not leaders; also it assumes that leadership runs in the family so what about the leaders from a family where none of the family members are leaders.
  • Contingency Theories:
    This theory focuses on environmental variables that determine what leadership style best suits the situation. It would seem that this is the most logical theory as it recognises that there is no single leadership style best suits a situation.
  • Situational Theories:
    According to this theory leaders base their decisions on situational variables. Different styles of leadership may be more appropriate for certain types of decision-making. This theory appears to be similar to the above theories.
  • The Behavioural Theory:
    This theory claims that leaders are created rather than it being innate qualities. In other words this theory is based on the actions of the individual rather than mental qualities or internal states. Behaviourists argue that people become leaders through teachings and observation.
  • The Participative Theory:
    The participative theory suggests the best leadership style is one which considers the input of others. Leaders that fit into this category encourage contribution from their group thus making others feel relevant and involved decision-making processes.
  • Management Theory:
    This theory is also known as the “Transactional theory” see the leaders role as one of supervision, organization, and optimising group performance. This theory sees the basis of leadership as one of reward and punishment. This is often the most common type of leadership found in business.
  • Relationship Theory:
    Also called the “Transformational theory” concentrates on the bonds between leaders and their followers. These leader often have high moral and ethical standards; they motivate or inspire people, they are very focused on the groups performance and want everyone to reach their full potential. A good example of this type of leader would be religious leaders such as priests.

So now that we have outlined the main leadership types which type are you? Who knows maybe you are a mixture of several.

The chemical DEET which is found in many insect repellent sprays has been shown to be toxic and can cause fits in children, the current advice is that it should not be used by pregnant women. In research studies DEET blocked the enzyme cholinesterase, which is essential for sending messages between the muscles and the brain which can cause muscle spasms and in severe cases death. Other side effects of DEET are excessive salivation and eye watering.

DEET, is also known as diethyl toluamide, and is used in a many repellent sprays. Initially it was thought that the DEET simply altered the insects sense of smell to prevent them from detected the smell of the human. However on further study it was found that it acts on the enzyme which is present in both insects and mammals. Therefore the idea that it simply modifies insect behaviour is false as it directly inhibits enzyme activity in both mammal and insect nerves, research also shows that DEET interacts and strengthens the toxicity of carbamates, a class of insecticides also known to block acetylcholinesterase.

This research raises questions with regards to the safety of insect repellents, however at present it is mainly based on theory and tests on animals if you are at all concerned speak to a pharmacist or a doctor. Alternatively try alternatives from your health food shop