The general environment includes Demographic Trends
Written assignment #1
Submitted By:
Thomas Oester
MAN 432 Small Business Management
The overall environment of a company includes Demographic Trends, Socio-cultural Forces, Economic Forces, Technological Forces, Political and Legal Forces, Global Forces. All of them effect the business strategic decision. But many of the forces will have different effects on the company and influences small businesses in many ways.
Demographic Trends are the most evident and predictable force. But, demographics are often over looked or not well understood. For examples: The populations of aging persons increased with geographic locations like the southern warmer states due to retirement age people migrating south.
In socio-cultural, being aware of and working cultural variances of local society can help companies prepare and adapt for the future, and changes in local society can create opportunities for the company. Also beware that this is a threat to a company’s growth if not monitored. Just like Education levels, Crime Levels per the population ratio and environmental friendly sections of the region.
Economic factors also can influence demand for products and services. This will dictate if it is a want or a need, and the costs of producing and providing them, such as interest, Inflation and so on.
The technological also cover creation, innovation and technological forecasting. Creating is an idea with profitable potential. Inventing a new product that can or will be produced and sold and monitoring technological advances in industry trends and being able to adjust and react quickly to the change.
For business strategic decision, in political and legal forces, the government can control the economy, encourage new business formation, force restructurings, close or punish companies. There is a global trend toward deregulation and privatization. But for different industries, Industries differ in the degree to which political and legal forces exert influence, like wind power
Submitted By:
Thomas Oester
MAN 432 Small Business Management
The overall environment of a company includes Demographic Trends, Socio-cultural Forces, Economic Forces, Technological Forces, Political and Legal Forces, Global Forces. All of them effect the business strategic decision. But many of the forces will have different effects on the company and influences small businesses in many ways.
Demographic Trends are the most evident and predictable force. But, demographics are often over looked or not well understood. For examples: The populations of aging persons increased with geographic locations like the southern warmer states due to retirement age people migrating south.
In socio-cultural, being aware of and working cultural variances of local society can help companies prepare and adapt for the future, and changes in local society can create opportunities for the company. Also beware that this is a threat to a company’s growth if not monitored. Just like Education levels, Crime Levels per the population ratio and environmental friendly sections of the region.
Economic factors also can influence demand for products and services. This will dictate if it is a want or a need, and the costs of producing and providing them, such as interest, Inflation and so on.
The technological also cover creation, innovation and technological forecasting. Creating is an idea with profitable potential. Inventing a new product that can or will be produced and sold and monitoring technological advances in industry trends and being able to adjust and react quickly to the change.
For business strategic decision, in political and legal forces, the government can control the economy, encourage new business formation, force restructurings, close or punish companies. There is a global trend toward deregulation and privatization. But for different industries, Industries differ in the degree to which political and legal forces exert influence, like wind power
References: 1. Franchise Mastermind (2014). [Online]. Available at: http://www.franchisemastermind.com/ [Accessed: 26 March 2014] 2. Longenecker, Petty, Palich, Moore (2010). New Products Management, 15th ed. South-Western Cengage learning.