THE EXTERNAL BUSINESS ENVIRONMENT

PEST analysis for XXXXXX, modes of entry and global agents.

Student ID XXXX XXXX

Insert word count here >>>

(excluding references and appendices)

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 Contents

Introduction............................................................................................................................3
PEST analysis .......................................................................................................................4
Modes of entry........................................................................................................................5
Global agents .........................................................................................................................5
Summary.................................................................................................................................6
References .............................................................................................................................7
Appendices…………………………………………………………………………………..

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Introduction

A brief overview of the country- the political and economic system, population, GDP,
inflation and interest rate trends and the key industry sectors. You must also state the
organisation and the mode of entry you would consider for entering the country.

Use relevant sources of information and reference these here

Main Body

 This should be written in formal language with a clear and direct style.

 Write in the third person (not I, we, and you), for example "The emerging
market being researched is…” not “I am researching the emerging market".

 When inserting charts or diagrams you should link these to your lines of discussion.

 Any other information should be provided in the appendices.

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PEST ANALYSIS

Political Factors
For example, you may have identified that the government is attracting companies to invest
(FDI) and the incentives provided by the host government such as low corporation tax rates.
High corporation tax rates which are set by the government.
Levels of corruption.
Political risk – political instability; explain why there is political instability

Economic Factors

What are the key economic factors?

Weak economic performance such as lack of growth in GDP / high inflation/unstable

currency

Inflation - as prices rise, the value of money falls – the same money can’t buy as much as it
used to.

Interest rates rise - increases the cost of borrowing to consumers and business. Higher
interest rates can lead to a reduction in demand for goods and services as it is more expensive
to borrow.

Economic Freedom – use the index to identify the economic freedom and explain the
implications for the degree of economic freedom.

Socio-cultural Factors

For example, a young demographic profile where consumers are willing to try different
products. Exploring this further you could link this to levels of disposable income to indicate
favourable economic factors such as increasing per capita income

You could research if there any changes in social mobility that present an opportunity for
businesses. An increasing middle class population represents substantial demand for luxury
goods and services, electronics and health care services.

You could provide data such as consumer spending or per capita income?
Factors such as religion/language barriers

Use Hofstede’s cultural dimensions

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Technological Factors

Discuss key indicators of technological progress for the chosen country.

Intellectual property – poor legislation to protect IP

Tech institutions

Government expenditure on R&D, Patent applications etc

MODES OF ENTRY

Provide a clear outline of each mode of entry using organisation examples.

Using at least one example, evaluate the entry mode used with reference to the type of
organisation and any macro environmental factors that may influence the entry mode. For
example, a strategic alliance or FDI may be encouraged as per government policy.
Alternatively, students may provide an example where licensing is appropriate, explaining
the advantages and disadvantages. Another option may provide an example of an
organisation which exports its product/service and discuss why this is an appropriate mode of
entry. Exporting may be more favourable as a low risk market entry strategy; lack of
commercial infrastructure, financial services, road transportation networks, and may have a
significant impact on risk exposure and the cost of doing business.

GLOBAL AGENTS

Explain the role of two of these organisations

What are the mechanisms implemented by these organisations to achieve greater economic
coordination?
For example, the IMF's role is to ensure and maintain stability in international monetary
system by lending to member countries, economic surveillance and capacity development.
Students to explain the role of the IMF and provide examples of how it implements these
activities.

In all cases you must use relevant sources of information to support your lines of
discussion. You must reference within your arguments.

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Summary

This part of the report consists of a summary of the main findings. It should contain nothing
for which there was no evidence/discussion in any part of the report findings.

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References – this should be on a new page

You must use the Referencing Guide to ensure you have presented references to the required
format.

You are expected to use sources as indicated in your seminar pack as well as other relevant
academic materials.

Do not use materials that are non-academic – if you are not sure then ask your lecturer.

Do not reference lecture notes – the sources for these notes are from the reading list and you
should refer to these for your research.

Do not use or copy from other student essays.

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Appendices
Any additional documentation during your research, such as economic, country or industry
data, charts or any other data tables, should be included here. Including all of this in your
main report will make it too long and unfocused, so providing the information as an appendix
is useful for the reader.

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Checklist

Does the work comply with UCB presentation standards? 

Does the introduction include all the information required? 

Have you determined the degree of economic freedom using the chart? 

Have you answered all questions with supporting information and references? 

Does your summary provide an overview of the main body? 

Does the reference list comply with UCB standards – see Referencing Guide 

Have you used a variety of text books and other relevant academic sources? 

Have you proof read your work for spelling and grammar errors? 

Have you used the CASE centre for guidance and support in academic writing? 

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CHECK YOUR ORIGINALITY SCORE.

DO NOT COPY AND PASTE FROM OTHER WEBSITES

OR MATERIALS.

YOU MUST LEARN TO PARAPHRASE YOUR WORK.

IF YOU NEED HELP THEN USE THE CASE CENTRE

WHICH IS BASED IN THE LIBRARY.

YOU SUBJECT LIBRARIAN WILL ALSO BE ABLE TO

PROVIDE GUIDANCE ON RESEARCH.

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