The latest advancements in the technology industry have transformed the way people used to communicate. Today, the leading source of communication is mobile phones. Now mobile phones provide access to Internet and also, different computational resources are easily accessible (Fleischmann & Srikantalah, 2011, pp.n.d). Mobile phone industry has a significant impact on the economy, which has led to its development and growth. Gates are opened for foreign investment by the mobile phone industry; therefore, multinational corporations are interested to open their headquarters and factories in countries, offering top class access to information and communication technology (Fleischmann & Srikantalah, 2011, pp.n.d). There are companies that encounter highly disordered and complicated external environment, along with unpredictable global conditions, which makes it extremely difficult for the companies to understand the environment (Hitt et.al, 2007, pp.n.d). Here comes the role of external environment analysis, which aids companies to understand the general environment. Further to handle unclear and imperfect data, this analysis is conducted by the companies (Hitt et.al, 2007, pp.n.d).
a) Conduct an environmental analysis for the mobile handset industry in your chosen geographical area.
Environmental Analysis of Mobile Handset Industry in United States
Keeping in view the significance of environmental analysis, we are performing the same activity for mobile handset industry in United States.
Macro Environment
Factors that are uncontrollable directly by the business are considered a part of macro environment. Like the economy, government policies, changes in society and things of this sort (Husso, 2011, pp.7). Let's say, if United States has a new legislation or amendments have been made in the taxation policies, then the business can hardly manage itself accordingly. Here the macro environment factors play a vital role, as they are able to modify the firm's environment (Husso, 2011, pp. 7). Macro environment factors are analyzed by using the Pestle analysis.
Pestle Analysis
Pestle is the short form of Political, Economic, Socio-Cultural, Technological, Legislative and Ecological features of an environment. Pestle analysis are best for analyzing and indentifying factors of macro environment that are effecting the industry and the firm at present or may effect in future (Allen, 2001, pp. 54).
Political &Environmental
Today, as the use of mobile phones is becoming common, there are also debates about its use, considered harmful for human health. The Government Accountability Office (GAO) of United States has raised this issue. They presented that the technology incorporated is dangerous for human health, because people are exposed to radio frequency (RF) energy, emitted by mobile phone, for a long time (GAO, 2012, pp.n.d).
The regulatory responsibilities for mobile phones are shared by Federal Communications Commission (FCC) and Food & Drug Administration (FDA). GAO was given the duty for inspecting numerous issues, regarding the impact of mobile phones on ...