Question

Explain what is meant by the Theme Park internal and external business environment and use the acronym P.E.S.T with appropriate examples to clarify your explanation.  Also, discuss using how new rides can be both interactive and educational.

Answer 1

The internal business environment of a Theme Park

Business environment means all the factors that are capable of influencing the actions of a business, It can be either internal or external. Internal environment means all those factors that are influencing from within an organization whereas external environment means all those factors that are capable of influencing a business from outside. A company would have more control over the internal environmental factors compared to the external environmental factors. Details of both the internal and external environment of a Theme park shall be given below.

The internal business environment of a Theme Park

The value system of the park, mission, objectives, plans, policies, shareholders, employees, etc are some of the internal environmental factors that can affect the business of a Theme park.

The external business environment of a Theme Park

The factors affecting the external business environment of an organization can be called as Political-Economic-Social-Technological factors or P.E.S.T factors. The P.E.S.T factors of a Theme Park can be explained below.

Political environment

Government policies are the major element of the political environment of a theme park. Governments stand on the protection of intellectual property rights, free trade, etc are the major considerations in this regard. The political stability of a government is also might influence the business of a theme park.

Economic environment

The economic condition of the market, availability of disposable income, etc are the important components of the economic environment that are relevant for a theme park.

Social environment

Society's attitude towards leisure and entertainment is the major social environment element related to theme parks.

Technological environment

Research and Development in the industry, the adoption of modern technologies, etc are the major considerations of a theme park in connection with the technological environment.

How can the new rides be both interactive and educational?

• Modern technologies like virtual reality, robotics, should be incorporated in the functioning of rides.
• Research should be done to provide a personalized experience to ride users.
• A mechanism to collect real-time feedback from ride users will provide insights into further development.
• Sound effects can be incorporated more for making the rides more interactive and educational.

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