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PRESENTATIONONCOMPONENTS OF ENVIRONMENT

Presented by:

Sheenam Pasricha

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COMPONENTS OF ENVIRONMENT

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1.Economic Environment

Economic factors affect the purchasing power

of potential customers and the firm's cost of

capital. The following are examples of factors in

the macroeconomic:

economic conditions

economic system

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economic system

economic policies

economic growthInterest rates

Currency Exchange rates

economic conditions

economic policies

economic growth Interest rates

Currency Exchange rates

Unemployment

Inflation

economic system

economic policies

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LEGAL ENVIRONMENT

Unemployment law

Health and Safety

Product Safety

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2.Political And Government

Environment

Political-legal forces include the outcomes of

elections, legislation, and court judgments, as

well as the decisions rendered by various

commissions and agencies. The political sector

of the environment presents actual and

potential restriction on the way an

organization operates.

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Some examples include:

tax policy

employment laws environmental regulations

trade restrictions and tariffs

political stability State budget deficit or surplus

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SocioCultural Environment

Social factors include the demographic and

cultural aspects of the external

microenvironment. These factors affectcustomer needs and the size of potential

markets. Some social factors include:

population growth rate

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ecology (e.g., global warming, pollution);

demographics (e.g., population growth rates,

aging work force in industrialized countries,

high educational requirements); quality of life

(e.g., education, safety, health care, standard

of living); and

noneconomic activities (e.g., charities).

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Technological Environment

Technological forces influence organizations in

several ways. A technological innovation can

have a sudden and dramatic effect on the

environment of a firm. First, technological

developments can significantly alter the

demand for an organization's or industry's

products or services.

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Marketing

Innovation

R & D activity Infrastructure Changes

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Thanks