(i) Socio-cultural factors: Social, cultural, demographic and geographic factors shape the way in which we live, work, and consume and have a major impact upon virtually all organisations. New trends are creating a different type of consumer and, consequently, a need for different products and services and organisation strategies. Lifestyle changes, Consumerism, Levels of education, religion, among others.
Trends for the rest of the nineties and beyond (for example a more educated consumer, the increased participation of women in the workforce, an ageing population) have to be appraised to identify significant opportunities and threats for organisations.
(ii) Technological factors
Technological influences are often the most apparent and dramatic. Revolutionary technological changes and discoveries in recent times (for example robotically operated production, laser technology, space communications, computer engineering,among others) represent major opportunities and threats that management must be aware of and they must assess their impact. Some innovations may create new industries as well as dislodging others.
(iii) Political and Legal.
This environment is composed of laws, government agencies and pressure groups that influence and limit various organizations and individuals. Sometimes these laws also create new opportunities for business for example, mandatory recycling laws have given the recycling industry a major boost and spurred the creation of dozens of new companies making new products from recycled materials.
(iv) Economic factors.
The organisation’s ability to remain profitable is directly influenced by the general health and well being of the economy. The overall macro-economic climate will determine the level of opportunities for organisations. Poor economic conditions will affect the demand for your organisation’s goods or services and more favourable economic conditions may provide scope for expansion.
maurice.mutuku answered the question on April 16, 2019 at 12:05