| Solution Climate change In the current world, climate change is a huge concern for businesses. Businesses are facing the obligation of taking actions towards minimising carbon emissions, with some switching to the use of LED bulbs while others have gone paperless (Office for National Statistics, 2022). This factor has both positive and negative impacts on businesses. The positive thing about climate change is that it presents opportunities for businesses to restructure their processes by, for example, adopting reusable packaging which generates substantial cost savings. The negative side is that some business practices and processes may be completely phased out. Inflation Economic factors, which include inflation, tax rates, interest rates and inflation, are another dimension of the PESTLE framework outlining the different macroenvironmental forces affecting organisations. Inflation is, no doubt, one among the top concerns of businesses currently. As economies slowly recover from the deep financial shocks caused by the Coronavirus, businesses and consumers alike must bear with the high commodity prices. In fact, inflation has hit a record-high in most countries, including the UK, where it is reported that the month of October recorded the highest inflation index, compelling a revaluation of strategy among businesses (BDO United Kingdom, 2022). Without doubt, inflation has a negative effect on businesses in terms of reduced output. Sociodemographic factors Today, individuals and human rights groups have become noticeably vocal about the rights of marginalised groups such as persons with disabilities (Khan et al., 2019). At the same time, notable shifts in the composition of the consumer base have vital implications for business organisations. For example, life expectancy has increased such that many people are living longer than was the case in the past. Sociodemographic factors present opportunities for firms as they make appropriate adjustments to respond to the emerging needs of the population. Priorities arising Better use of resources: The high rate of inflation posing huge financial hardships to businesses calls for managers to adopt new business of models that can generate more results with fewer resources. Similarly, the threat posed by climate change calls for organisations to get more intentional with sustainability programs. Specifically, businesses must begin thinking of strategies of sharing and reusing the scarce resources available to them. Greater focus ought to be given on minimising or eliminating waste generation in favour of recycling (Angus & Westbrook, 2020). Digitisation: Adopting broad-based technology might help businesses to cope with the changes occurring in the external environment and gain competitive advantage. Tools like videoconferencing and teleworking might be helpful for organisations as they seek ways of minimising operating expenses as they await the economy to recover from the shocks caused by the COVID-19 pandemic. Although digitisation could help enhance operational efficiency, its adoption may be hampered by lack of money as well as expertise (Experian Information Solutions, 2022). Diversity and inclusion: The changing demographics described earlier point out to the need for business to get inclusive. Taking the example of people with disabilities, organisations ought to prioritise equal accessibility and representation not only in their products/services but also in their recruitment and hiring policies and practices. This will help minimise prejudice around diversity. It is a priority for business to push for inclusion together with authenticity in their product developments as well as corporate strategies (Angus & Westbrook, 2020). |
| Assess the scale of technology within organisations and how it impacts work. (AC1.4) Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section. Word count: Approximately 350 words |
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