21st Century Management TheoriesBusinesses are everywhere; they constitute the backbone of the configuration of society. Without the innovations and opportunities offered by these companies, the lifestyle, as we know it, would be a shadow of what it is today. Given the importance of all endeavors to the human race, it is vital that they are cultivated. Most businesses are profit-oriented and to achieve this they must have a solid internal management structure. As a result, many theories and concepts have emerged over the years to aid the management side of an organization. The result of such theories and concepts is, fundamentally, to obtain maximum performance from employees while at the same time creating a sense of cohesion and serenity. This essay will examine such theories and their importance to the success of businesses. The global market is made up of a network of sub-sectors. Businesses compete with each other in these respective industries to gain the largest market share. Examples of industries include fast food, apparel, banking, etc. However, it is not only the managerial management of a company that determines its success. There are external factors that can influence companies' policies and decision-making, so to compete they must adopt a flexible approach to market demand. These external factors are constantly evolving and therefore it is important that they are monitored and that the company also responds accordingly. An example of a corporate response to its environment was in the case of Northern Rock, where the bank borrowed £26 billion following the subprime mortgage crisis in North America. One tool that can be used to monitor these external changes is a PEST analysis. PEST analysis is an element of external analysis when carrying out market research and provides an overview of the different macro-environmental aspects that the company must take into consideration (2). This form of analysis examines political, environmental, social and technological factors.Fig.1Political• Trade policies• Financing and subsidies• Local and international pressure groups• Government policies• Wars and conflicts• Elections• TerrorismSocial• Consumer attitudes• Consumer opinions media• Brand image • Legislative changes • Demographics • Ethnic/religious factors • Standard of living • Health Economy • Trends in local and overseas economies • Fiscal trends • Job growth/unemployment • Interest and exchange rates • Inflation • Tariffs • Technological disposable income • Competition Technological development • Information and communications • Innovations • New discoveries • Internet • Technology patents • Research funding Fig.1 shows some external factors that influence the decision-making process of companies in the production of their products.