• Introduction and characteristics
• Environmental sectors
o Socio cultural
• Environmental scanning
What is environment?
← It is the surroundings, external objects, influences or circumstances under which someone or something exists
← It is the aggregate of all conditions, events and influences that surround and affect it
← Has far reaching effect
External environment sectors…
← Social – how consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population
← Legal – the way in which legislation in society affects the business. E.g. changes in employment laws on working hours
← Economic – how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates etc
← Political – how changes in government policy might affect the business e.g. a decision to subsidise building new houses in an area could be good for a local builder
← Technological – how the rapid pace of change in production processes and product innovation affect a business
1. Customer/client factors
2. Product factors
3. Marketing intermediary factors
4. Competition related factors
1. Technological development, Automation introduced
2. Impact of technology
3. R&D activity
4. Rate of technological change
1. Cost, availability of raw materials, finance, human resource
2. Supply of plant and machinery, spare parts and after sales service
3. Bargaining power... [continues]
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