Union Pacific Corporation: External Factors Analysis – Essay Example
The paper "Union Pacific Corporation: External Factors Analysis" is an excellent example of a business essay.
Union Pacific Corporation remains a leader in the railroad transportation industry in the West of the United Stated (Koraleski, 10). Consequently, the company experiences several external factors that constantly affect its operations. The social and demographic context explores the company’s context of the operation. Union Pacific Corporation’s Primary location remains in Utah. The firm serves a large demographic network in the Western part of USA, Mexico, and Canada. The high population remains vital in the company’s long-term sustenance. Moreover, the company’s future reveals a possibility of expansion into other areas and demographic portions.
Economic conditions highly affect the company’s operations. Primarily, the company transports consumer goods such as agricultural products, automotive, coal, and chemicals. The demand for these goods changes in equal proportions to the prevailing economic conditions. Therefore, the economy dictates the company’s scale of operation. Technological factors apply as Union Pacific is a technologically driven company. Operating in the transportation industry, the company primarily relies on the use of specially devised equipment. This creates and enhances efficiency enabling the successful implementation of the business process. However, the limitation lies in the suppliers of railroad technology. The suppliers remain low in numbers and hence create the risk of crippling the company in the case of their withdrawal from the market.
The environmental and geographic segment requires the company’s reduction on its carbon print on the environment. Bodies such as the Environmental Protection Agency regulate the company’s impact on the environment (Koraleski, 13). Addressed issues include waste management, air emissions by the company and waste processes in water bodies. Environmental issues ensure the company’s conservation of nature during its operations. Political, legal and government segments determine the company’s operations. In the railroad industry, the business experiences extensive government regulation in issues regarding freight charges, standards of operation and safety. The policies cover a wide range and constitute heavy repercussions when broken.