The external environment affects Robert Walters and there is a a need to analyze the organization’s relationship with the environment as well as its business strategy. This can be analyzed through the PESTLE analysis, which looks at the political, economic, social, technology, legal and environmental factors and how they affect the enterprise (Dransfield 2001, p.20). As a company that operates in an international market where there are several competitors, it is important to understand the macroeconomic environment that one intends to operate in and this determines the policies that the company decides to adopt in order to remain successful and profitable in a foreign market. Therefore, any company that intends to operate and maintain a competitive advantage over the others must consider the macroeconomic factors that prevail in that particular market.
The political factors include the stability of the government, the taxation policies, foreign trade regulation as well as the social welfare policies, which greatly affects the operations of the business enterprise (Partridge 1999, p.76). Under the political factors, India is often referred to as the largest democracy in the world only followed by the United States and this has a profound effect on the success of any business that may be started or carried out in the nation. The political situation in India underscores the fact that all businesses within a nation must always operate within the confines of the political conditions of the resident nation. India has reasonable and business-friendly laws with regard to the requirements for wages, immigration, trade agreements and taxes amongst other political macro-economic requirements (Narayana 2010, p.34). Accordingly, Ernest & Young state that India is the fourth-best destination for foreign direct investment (FDI) in the world and the political structure and policies of the nation greatly favor a recruitment agency such as Robert Walters.