Economics Essay Example | Topics and Well Written Essays - 2500 words - 6

Economics - Essay Example Next it delineates the strategic choices at the disposal of corporate entities in the process of planning and policy making. The study also focuses on the strategic significance of the changes that have taken place in the corporate environment over the years since the times of such catchy phrases like Schumacher’s â€Å"small is beautiful†. According to the lead article in the Economist on the 29th of August 2009 big corporate entities are coming in to vogue again because they have discovered a master strategy to survive in the all too important strategic competitive environment. By extension environmental factors play a very significant role on the corporate strategy and policy making environment. The extent to which such environmental factors play a role in determining the directional thrust of the corporate strategy of the big business corporation concerning competition and corporate social responsibility (CSR) can be known through an analysis of the theoretical approaches recommended by modern management gurus. This paper would adopt the five principle environmental factors suggested by Pearce & Robinson (2002). The authors suggest a theoretical framework of five significant environmental factors in order to enable leaders and managers of corporate entities to understand the nature and the extent of the impact that environmental factors have on business organizations. Above all according to the authors big businesses are more and more affected by them. Customers are very important for the business organization in determining its corporate strategy. For example customers can either make or break a business organization on the basis of demand. The emerging big corporate entity depends on customers’ perceptive behavior to such an extent that the former has very little freedom in deciding the corporate strategy and production policy in any other possible way. The purchasing power of the modern customer is unlimited