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PREPARATORY EXAM
THE ENVIRONMENT

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THE POLITICAL ENVIRONMENT
 
 
US elections - What impact can it have on world politics
 
Zimbabwe's President Robert Mugabe and Leader of the Movement for Democratic Change (MDC) agree on a power sharing deal with Mugabe maintaining his position as president and Mr. Morgan Tsvangarai leader of the MDC agrees to be Zimbabwe's Prime Minister.

THE ECONOMIC ENVIRONMENT
 
  • World Financial Crisis (Credit Crunch) that started in 2008 affecting financial insitutions, consumers, businesses and governments
  • Unemployment rate increasing due to the credit crunch.
  • Lloyds TSB acquires Halifax Bank of Scotland
  • The collapse of Lehman Brothers ( One of the biggest US mortgage company send shock wave accross the world)
  • The collapse of MG Rovers and the taking over of the British Car Manufacturer by Chinese auto company.
  • US grants about $300billion rescue package to bailout its major financial institutions.
  • The British Government comes to the aid of Bradford and Bingley - one of its key mortgage provides with financial support to rescue it from going into administration
  • The British Government also took steps to Nationalise Northern Rock and prevent the collapse of the bank by pumping in money to save the bank.
  • Major job cuts by businesses e.g. Lloyds TSB, IBM, etc.
  • Fuel price increase
  • Milions of households in Britain could be caught up in fuel poverty this winter.
  • High inflation rate in Zimbabwe - inflation has skyrocketed to a record high.

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THE SOCIAL ENVIRONMENT
 
  1. Culture
  2. Demography
  3. Education
  4. Health
  5. Transportation
  6. World food crisis --- shortage of world food production. The world food demand is more than what its capable of producing thereby laeding to scarcity.
 
 

THE TECHNOLOGICAL ENVIRONMENT
 
The advent of new technologies for example
 
Chip and Pin
 
Self service machines: for example in supermarkets, customers can scan and pay for their products. At the petrol station, one can pump fuel and pay for it without needing any help etc
 
The Internet which facilitates communication, advertisement, etc
 

THE ECOLOGICAL ENVIRONMENT

THE LEGAL ENVIRONMENT
 

Smoking Ban

 

 

Drink driving law

 

 

Alcohol law

 

 

Health and Safety law

 

 

Equal opportunity law

 

 

Sunday closing law

 

 

Law of contract

 

 

 

Pollution law

 

 

 

 

 

 

STOP AND THINK
 
Carry out a research on the World Business Environment to find out the latest trends in world politics, economic, social, technological, ecological and legal factors affecting global businesses.

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