Business environment Essay Example | Topics and Well Written Essays - 1750 words - 1

Business environment - Essay Example There are many reasons for this change in the external environment as organizations are fighting their way to reclaim their original position in the market. Large banks such as Northern Rock failed to sustain itself despite support from Bank of England and such the carryover effects are even felt by the organizations working in other sectors of the economy. Subprime mortgages may be just tip of the iceberg as there are other very serious causes of the failure of the financial system. Due to inter-linking of different macroeconomic variables, governments of UK and US even went on to pump in funds into failing organizations in a bid to stabilize the economy. It has also been observed that the different economic policies adopted by the UK and US Government specially after 1970s were largely in favor of free market economy which allowed different organizations to go beyond their capabilities and as such caused the current financial crises within the both these countries. Due to this reason, British Government specially has been planning to reorganize and restructure the mortgage market in a bid to lessen the impacts of the current financial crises. This research paper will provide an analysis of some of the PEST or LEPEST factors which British Government may consider for successful implementation of its plans. Further, this research paper will also discuss how a bank would respond to such influences. As discussed above that the current crises are the crises of confidence and as such not British Government is taking efforts to revive the failing institutions in particular and economy in general. As a part of these efforts, British Government is also undertaking to restructure the existing mortgage market in the country in a bid to rationalize it so that in future no such episodes happen. PEST Analysis in such circumstances can serve as an excellent tool to provide great insight into some of the critical factors required