EXTERNAL ENVIRONMENT ANALYSIS
The external environment analysis is needed for the Bergerac Systems The Challenge of Backward Integration Case Study to make sure that it actively, and proactively responds to the macro-environment. The macro environment or the external environment for the Bergerac Systems The Challenge of Backward Integration Case includes those factors which are not in control of the business or the company directly. As a result:

The Bergerac Systems The Challenge of Backward Integration cannot influence these factors in its favour, and in contrast, these factors directly affect the operations and workings of the company.
As a result, Bergerac Systems The Challenge of Backward Integration must make sure to continually assess and review the external environment to make sure that it responds to external factors, and take them into account, during strategic decisions, and strategy devising.
Businesses like Bergerac Systems The Challenge of Backward Integration make use of strategic model tools continually to make sure that they are aware of the external environment.
These include tools like the pestle analysis and Porter’s five force model, as well as strategic group analysis and pentagonal analysis, to name a few.
The external analysis for the Bergerac Systems The Challenge of Backward Integration Case Study will assess and will apply the strategic models and tools to review the business environment for the company.PESTEL Analysis
3.1.1. Political
Political factors and elements can have a direct and indirect impact on the business. This is seen through the Bergerac Systems The Challenge of Backward Integration Case Study.

3.1.1.1. Policy Makings
Policymakers for the Bergerac Systems The Challenge of Backward Integration Case are in all likelihood to intervene in the business surroundings.
Commercial restrictions and political stability are additionally integral factors that will determine the success or failure of Bergerac Systems The Challenge of Backward Integration.
3.1.1.2. Taxation
Tax policy will influence the cost of doing business for Bergerac Systems The Challenge of Backward Integration.
An increase in organization taxation (on business profits) has a similar impact as an expansion in expenses.
Organizations can pass a portion of this increase on to shoppers in more expensive rates, yet it will likewise influence the bottom line of the business.
3.1.1.3. Government Support
The government helps organizations in two primary ways: monetary help and regulatory.
Bergerac Systems The Challenge of Backward Integration can use government assistance and grants for purposes of growing the business, advancement, exporting, and innovative work.
Bergerac Systems The Challenge of Backward Integration can also be impacted by when Governments modify regulations and laws.
3.1.1.4. Political Stability
Lack of political stability in a country impacts business tasks. Political stability is particularly essential for the organizations which work globally, such as Bergerac Systems The Challenge of Backward Integration.
A forceful takeover could oust a legislature. The takeover could prompt mobs, plundering and general issue in nature. These disturb business tasks for Bergerac Systems The Challenge of Backward Integration.
Purchasing political risk insurance is a way for Bergerac Systems The Challenge of Backward Integration to oversee political hazard. Organizations that have worldwide activities utilise such as insurance to lessen their risk presentation.
The soundness of a political framework can influence the attractiveness of a specific nearby market for Bergerac Systems The Challenge of Backward Integration.
3.1.2. Economic
The economic factors are one of the most important of PESTEL factors and can influence Bergerac Systems The Challenge of Backward Integration in several ways.

3.1.2.1. GDP
Economic components have the most evident effect on the profitability and overall appeal of Bergerac Systems The Challenge of Backward Integration.
Even though GDP per capita is a useful economic factor, GDP per capita gives just a fractional perspective on the economic factors that may influence Bergerac Systems The Challenge of Backward Integration.
Higher GDP leads to higher disposable income and hence higher sales for Bergerac Systems The Challenge of Backward Integration.
3.1.2.2. Inflation
Higher inflation will disintegrate the purchasing power of the consumer and the shopper
Higher inflation will also harm the costs of raw materials and other inputs that are utilised by Bergerac Systems The Challenge of Backward Integration.
3.1.2.3. Interest Rates
Fluctuations in interest rates may translate into higher or lower costs for the purchase or sale of items and administrations provided by Bergerac Systems The Challenge of Backward Integration.
Higher interest rates hurt the disposable cash of consumers.
3.1.2.4. Unemployment Rate
A high unemployment rate is also unadvisable as it dissolves dispensable income of consumers, and will harm Bergerac Systems The Challenge of Backward Integration ’s position.
The high unemployment rate will lead to lower sales for Bergerac Systems The Challenge of Backward Integration and impact its overall profitability and revenues.
3.1.2.5. How can the Bergerac Systems The Challenge of Backward Integration decrease the risk of economic instability?
Bergerac Systems The Challenge of Backward Integration can work towards building economies of scale
Maintaining business costs and controlling the final price of the product can also help Bergerac Systems The Challenge of Backward Integration fight economic instability
Bergerac Systems The Challenge of Backward Integration can also work towards building a sustainably managed workforce
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3.1.3. Social
Social influences will stem from social components of the macro environment. Under the PESTEL Analysis, they can influence Bergerac Systems The Challenge of Backward Integration in several ways:

3.1.3.1. Social patterns and consumer behaviour
Social patterns affect work trends and patterns and are directly related to the behaviours of consumers.
Social patterns also have a direct influence on buyer tastes and inclinations, and the specific kind, structure, and volume of interest for an item or service.
3.1.3.2. Social patterns and changing consumer needs
The checking of social patterns will enable Bergerac Systems The Challenge of Backward Integration to reposition its items or administrations to meet the changing desires and needs of consumers.
3.1.3.3. Social trends in education
Social trends of higher education have allowed firms like Bergerac Systems The Challenge of Backward Integration to have access to a pool of higher skilled talent – but at the same time, also face a more criticising consumer base.
Higher education has also made consumers more aware of different product offerings by companies like Bergerac Systems The Challenge of Backward Integration.
consumers are also more educated and knowledgeable of different substitutes of a product, as well as become more readily available at different touchpoints.
3.1.3.4. Social patterns make companies more consumer-centric
Companies like Bergerac Systems The Challenge of Backward Integration are expected to become more consumer-centric than product-centric.
Similarly, Market segmentation and consumer grouping are dynamically moving towards measures of psychographics and lifestyles to understand the consumer more.
3.1.3.5. How can Bergerac Systems The Challenge of Backward Integration use social aspects for growth?
Use consumer-centric means of segmentation and targeting.
Use consumer-oriented and consumer-based marketing – which use emotional appeals to influence consumers.
Make products more accessible at different touch points common to target consumers socially.
3.1.4. Technological
The technological factors can influence Bergerac Systems The Challenge of Backward Integration in several ways:

3.1.4.1. Innovation
The quick pace of technological change at Bergerac Systems The Challenge of Backward Integration may be driven through innovation.
Business leadership at Bergerac Systems The Challenge of Backward Integration tries to push the limits of present limitations.
3.1.4.2. The advent of the internet and online retailing
The expansion of the Internet and online business has discarded many intermediaries. Bergerac Systems The Challenge of Backward Integration can communicate and retail directly to the consumers now, or through modern intermediaries such as eBay as well, for example.
Bergerac Systems The Challenge of Backward Integration may also use current social networks to retail and use e-commerce to boost sales.
3.1.4.3. Social media and business growth
Bergerac Systems The Challenge of Backward Integration can make use of social media to interact and reach with consumers
Social media can also be used to reach the target market audience more effectively
Social media is cost-effective and strategically more influential for Bergerac Systems The Challenge of Backward Integration
3.1.4.4. Improved value chain network
For Bergerac Systems The Challenge of Backward Integration, technological innovation can be utilised to build on competitive advantage through several different ways.
Bergerac Systems The Challenge of Backward Integration can incorporate less expensive production, improved access to clients, improved marketing, improvement in product quality, and increased levels of business intelligence than the competition.
3.1.4.5. Managing technology and the future for Bergerac Systems The Challenge of Backward Integration
To flourish in a business world that is quick paced and receptive to innovative change, Bergerac Systems The Challenge of Backward Integration must stay cautious.
It must be always be updated on any technological developments in the business and industry.
Bergerac Systems The Challenge of Backward Integration should weary of how the company are probably going to influence its future attractiveness and profitability.
3.1.5. Environmental
For Bergerac Systems The Challenge of Backward Integration, the environmental aspects of the PESTEL analysis may include:

3.1.5.1. Environmental stability and business standards
Bergerac Systems The Challenge of Backward Integration may be expected to incorporate maintainability standards into their business methodologies and to help resource allocation choices.
Bergerac Systems The Challenge of Backward Integration may also be subject to environmental laws – which will impact and guide its operations to become more environmentally friendly.
3.1.5.2. Environmental stability and budget allocation
Leadership in the Bergerac Systems The Challenge of Backward Integration must measure the connection between natural activities and budgetary execution.
Bergerac Systems The Challenge of Backward Integration also strategically decides and assesses if the organization have been estimating the monetary effect of natural and social activities.
3.1.5.3. Environmental sustainability
Bergerac Systems The Challenge of Backward Integration also distinguishes and differentiates explicit zones of concern and impediments to the coordination of environmental sustainability into corporate performance and strategy
Bergerac Systems The Challenge of Backward Integration also gives explicit direction concerning how organizations can push toward a superior reconciliation of ecological and social activities in their basic leadership procedures and tasks.
3.1.5.4. Environmental sustainability and business growth
Bergerac Systems The Challenge of Backward Integration may use environmental issues to adjust financial, natural and social performance.
Concerns towards the environment will enhance the business image for Bergerac Systems The Challenge of Backward Integration.
Environmental sustainability within business goals and strategy will also reflect corporate responsibility on the part of Bergerac Systems The Challenge of Backward Integration.
3.1.5.5. Environmental sustainability and improved consumer relations
Consumers will be more inclined towards the use of environmentally sustainable products.
Environmental sustainability in operations works towards improving the bottom line and overall profitability for the business of Bergerac Systems The Challenge of Backward Integration.
Improvement of cost management and operations will be observed in the business as well.
3.1.6. Legal
Legal components can influence Bergerac Systems The Challenge of Backward Integration directly, and can likewise influence the instruments through which an organization buys its stock or connects with the client. The Bergerac Systems The Challenge of Backward Integration should be mindful, for example, of the following legal aspects:

3.1.6.1. Labour law
Labour law refers to the guidelines in regulations that set up minimum and benchmark conditions.
These include identifying with the work of people.
Labour laws include aspects of minimum working age, least time-based compensation, etc.
Bergerac Systems The Challenge of Backward Integration must be mindful of these laws in routine business tasks such as hiring, for example.
3.1.6.2. Discrimination law
Under the discrimination law, Bergerac Systems The Challenge of Backward Integration must ensure to avoid episodes of unequal or uncalled for treatment based on an individual's age, inability, sex, national source, race, religion, and sexual orientation.
Bergerac Systems The Challenge of Backward Integration should train its human resource management team in ensuring that there is no:
Unequal hiring
Discrimination in recruitment
Internal discrimination in talent management
Bias in training opportunities
Unfair compensation systems
Prejudiced promotions and succession management
3.1.6.3. Health and safety laws:
Under this, Bergerac Systems The Challenge of Backward Integration is required to give a protected work environment to their workers.
Working environment security and wellbeing laws build up guidelines intended to dispense with individual wounds and injuries from happening in the work environment.
all operations of Bergerac Systems The Challenge of Backward Integration should be designed to physically and emotionally safeguard and protect the employees and the labour force employed