Economic and social factors business plan

Each factor will be elaborated on below: Political Factors: These factors are all about how and to what degree a government intervenes in the economy or a certain industry.

Examples include: Technology and communications infrastructure, legislation around technology, consumer access to technology, competitor technology and development, emerging technologies, automation, research and innovation, intellectual property regulation, technology incentives, etc.

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Take appropriate action. How restrictive are the regulations for foreign businesses, including foreign ownership of business property and taxation? You May Also Like. It was important to fully understand the social factors in these markets.

The security environment may include either personal, company, or national security. Businesses today must deal with the unique preferences of different generations, each of which requires different marketing approaches and different goods and services.

In addition, minorities represent more than 38 percent of the total population, with immigration bringing millions of new residents to the country over the past several decades.

PEST Analysis is useful for four main reasons: It helps you to spot business or personal opportunities, and it gives you advanced warning of significant threats.

Additionally, factors that are more likely to change in the future or more relevant to a given company will carry greater importance.

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Furthermore, companies may change various management strategies to adapt to social trends caused from this such as recruiting older workers. This inlcudes population trends such as the population growth rate, age distribution, income distribution, career attitudes, safety emphasis, health consciousness, lifestyle attitudes and cultural barriers. Economic Factors to Consider How stable is the current economy? While still in the rebuilding stage after Hurricane Katrina hit in , the U. Inflation and interest rates are other areas that change according to economic activity. The social implications are visible in marketing campaigns most of the time. However, the external environmental conditions that affect a business are generally beyond the control of management and change constantly. For the environmental portion of the analysis, Feiman said to look at environmental evolutions and regulations to determine how they could impact a business. Is it growing, stagnating, or declining? The external business environment consists of economic, political and legal, demographic, social, competitive, global, and technological sectors.

All of these impact how consumers buy houses, cars, etc. The amount of government activity, the types of laws it passes, and the general political stability of a government are three components of political climate.

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PEST Analysis Definition