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    Contemporary Developments in Business and Management

    Intoductionto Contemporary Developments in Business and Management

    Emergence of concrete jungle is the symbol of development and progress. These contemporary developments in businesses have helped people transform their imagination to realities. Buildings, bridges, highways, resource network systems like water lines, electricity grids, dams, tunnels, etc. are all constructed and maintained by constructional groups. Growing population means excessive demands for new habitats. On top of these requirements, application of technology is also necessary for organisations so that consumer expectations are not hindered. Hence, it is important that organisations must keep pace with external environment.

    Critical consequences can be avoided if analytical approach to business environmental factors is cultivated.

    The aim of this report is to give deep knowledge regarding influence of external business environment on the functioning of Balfour Beatty. It's strategies are regularly coordinated with realistic market conditions. The company is known for its infrastructural investments and efficient constructional designs in different parts of UK and US. This assessment will also focus on technological changes and its implications on this aspect on business and construction industry so that appropriate responses and improvements can be generated. The final section of this report will demonstrate areas of Balfour Beatty which require certain changes.

    TASK 1

    PESTEL analysis refers to the major components of external factors that affect functioning of an organisation (Seddon, Calvert and Yang, 2010). Basically, when a company's external business environment is to be analysed then PESTEL analysis tool is used. Balfour Beatty has been functioning since the year 1909. A large number of transformational changes took place during these many years both in external and internal environment of company.

    P-Political

    Government that rules over a country is majorly responsible in defining the dynamics and internal structure of every company. The political factors are formed by actions and reactions of these ruling bodies. Balfour Beatty's economy is influenced by political activities of the government. There are certain parties that practise unfair activities for which private companies have to suffer. Economy is ruined when politics takes a brutal face. Corruption is the major factor that deteriorates the economic status of companies especially in the private sector (Naidoo, 2010). New tax laws or export import duties that are introduced by government are influenced by politics in the country. Fiscal policy is also a major component of political factors affecting a business environment externally.

    Running with a motive to earn profits, Balfour Beatty has been leading as the top British multinational company in the field of construction. There are certain specialised services which are to be performed by company before building a foundation for new construction. These services require permission from government officials after they screen and test the validity and strength of materials to be used. Investments are influenced by political activities going in a country (Needle, 2010). If any sort of changes are made and introduced by ruling parties regarding employment laws and trade policies then, Balfour will face a difficulty in developing its strategies and tactics for completing a particular project.

    E-Economical

    Economy is vital for survival where Gross Domestic product is a figure that determines whether a country is developing or developed or even under developed. Classification of countries on the basis of their annual income is important for understanding its financial status in the world. Foreign trade policies and competition laws are certain examples that have been formulated according to the economic conditions of nations (Chittithaworn and et. al., 2011). Business environments are crucially affected by economic factors. Effects of these changes in economic policies often have a long term impact on the firms.

    Balfour Beatty has to develop its working techniques by keeping appropriate margins for economic changes. Sudden rise in prices may often lead to increasing cost of projects. As a result, company has to gather more funds for successful completion. Inflation rates, interest rates, foreign exchange policies, foreign investments, recession factors, growth patterns, etc. are certain significant elements of economic factors influencing Balfour's external en

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