Examine critically the nature and lasting impacts for domestic Essay

Examine critically the nature and lasting impacts for domestic business environment of the global financial crisis of 2007 - Essay Example Johnson et al (2008, p.55) identify the PESTEL framework as a means of analysing the environment. Following the corporate scandals of Enron and WorldCom, several commentators have added ethics to the list of analytical factors and it is this approach that will be used to analyse the macro-environment of the UK following the global financial crisis of 2007. The STEEPLE framework considers the Socio-cultural, Technological, Economic, Environmental, Political, Legal and Ethical factors that affect business and over which business has no control. An analysis of the current environment is as follows: Figure 1: Macro Environmental Analysis Although this analysis is brief, it provides insight into potential problems facing the UK in the short- and medium-term in different areas. Some of these will be evaluated in more detail. Socio-Cultural Factors Factors within this area tend to be long-term trends, such as the changing pattern of work and women’s participation in the labour market . Following the UK general election in 2010 and the change of government, there has been a significant shift in the approach to the public sector and state support for the country’s population. ... The OECD are reported as stating that the cuts â€Å"risked derailing economic recovery† (ibid), with the IMF highlighting that unemployment levels will increase dramatically, leaving many people facing a significant reduction in their â€Å"livelihood, security and dignity† (ibid). They also highlight that following job losses, people suffer from health problems. Children of parents without work do worse in school and overall â€Å"faith in public institutions and democracy† (ibid) is reduced. The previous year, the OECD has predicted a â€Å"full-blown social crisis† following the expected rise in global unemployment (Seager, 2009). The OECD secretary general was reported to have said that: â€Å"restoring global growth is an economic and political priority but also an ethical, moral, social and human imperative. And employment and social policies are an essential component of a successful strategy to bring .... countries back on a growth track† ( Seager 2009) This demonstrates that the different elements within the macro-environment are interrelated and cannot really be separated as this analysis suggests. The over-riding fear in the social domain is an increasingly polarised society with the haves doing much better and the have-nots being pushed into poverty as unemployment increases and welfare benefits are cut (Armour 2010). Technological Factors Technology includes not only information technology but the processes by which manufacturers and service providers create and deliver their products. Although the biggest impact in the technology area has been the increasing power and availability of computing power, the impact for manufacturing should not be forgotten. Most homes in the UK now have access to a personal computer and the internet, allowing them