Internal factors are those factors which exist within the premises of an organization and directly affects the different operations carried out in a business. These internal factors are: It implies the culture and norms of the business. In other words, it means the regulatory framework of a business and every member of the organization has to act within the limits of this framework.
Some approaches will add in extra factors, such as International, or remove some to reduce it to PEST.
However, these are all merely variations on a theme. The important principle is identifying the key factors from the wider, uncontrollable external environment that might affect the organization The PESTLE Factors We start with the Political forces.
First of all, political factors refer to the stability of the political environment and the attitudes of political parties or movements. This may manifest in government influence on tax policies, or government involvement in trading agreements.
The difference between Political and Legal factors is that Political refers to attitudes and approaches, whereas Legal factors are those which have become law and regulations.
Legal needs to be complied with whereas Political may represent influences, restrictions or opportunities, but they are not mandatory. Economic factors represent the wider economy so may include economic growth rates, levels of employment and unemployment, costs of raw materials such as energy, petrol and steel, interest rates and monetary policies, exchange rates and inflation rates.
These may also vary from one country to another. Socio-cultural factors represent the culture of the society that an organization operates within. They may include demographics, age distribution, population growth rates, level of education, distribution of wealth and social classes, living conditions and lifestyle.
Technological factors refer to the rate of new inventions and development, changes in information and mobile technology, changes in internet and e-commerce or even mobile commerce, and government spending on research. There is often a tendency to focus Technological developments on digital and internet-related areas, but it should also include materials development and new methods of manufacture, distribution and logistics.
Environmental impacts can include issues such as limited natural resources, waste disposal and recycling procedures.
Additional Considerations A newer force which is gaining in importance is ethics.
These can be defined by the set of moral principles and values that govern the actions and decisions of an individual or group. Ethics and morals serve as guidelines on how to act rightly and justly when individuals are faced with moral dilemmas.
This force could include corporate social responsibility, fair trade, affiliation between corporations and charities.
A particular problem may exist with how ethical factors relates to legal forces as they may be at different stages in development. Something may be ethical but not protected by law, whereas otheractivities may not be ethical, but are legal.
On an international basis, it is best to perform the analysis on a country-by-country basis because factors can differ greatly between countries or even regions."Macro Environment Economic Affecting Sabc" Essays and Research Papers Macro Environment Economic Affecting Sabc A macro environment comprises the external factors that can influence a .
Macro Environment Economic Affecting Sabc.
A macro environment comprises the external factors that can influence a business. These factors are often out of the control or management ability of a company.
Economics and Macro Environment. A macro environment comprises the external factors that can influence a business. These factors are often out of the control or management ability of a company.
Factors typically include economic, demographic, political, and technological forces in business. These include economic conditions, technological forces, regulatory forces, global forces, social forces and synergy Economic conditions Economic conditions refer to the number of economic factors that affect the general business cycle in both national and local markets (Abarran, ).
Micro and macro environments have a significant impact on the success of marketing campaigns, and therefore the factors of these environments should be considered in-depth during the decision making process of a strategic marketer.
The general environment, sometimes called the macro environment, includes the external factors that usually affect all or most organization. The general environment includes the type of economic system, economic conditions, type of political system, and conditions of the ecosystem, demographics, and cultural background.