This analysis will assess the impact of the political, economic, social, technological, and legal factors on the industry. The analysis is presented below: Political Environment The influence of the political factors in the way of change in the regulatory measures and the attitudes of the current government will largely determine the growth and success of any industry and the players within that industry Keim, If the government is stable and a staunch supporter of the industry then there will be ample chances for the industry to grow.
Each decision you make at your business might address a specific problem or need in a department, but all decisions can affect the main goal of any company -- profitability.
When managers make decisions in a vacuum, it can lead to interdepartmental complications.
Understanding the basic factors you should consider when making any decision helps you and your staff make better plans or react to individual situations. Return on Investment One of the obvious factors that influences business decisions is the effect on profitability.
You can measure this in a number of ways, but calculating a return on investment is often the simplest. The return on an investment is the amount of benefit you gain or lose by undertaking an activity. However, the staff time you spend managing the direct mail program might cost you much more than placing an ad, making your return on the ad better.
Calculating your return for each opportunity would let you know what options offer a better investment. Brand Impact Many decisions you make, from where you advertise and sell to what prices you charge and charities you sponsor, have an impact on your image.
Consider what your customers will think when you make decisions the public can see. Effect on Resources When you calculate your profit benefit from a possible decision, also consider the overall effect on your sales, human resources, accounting, production and information technology staff.
If making a particular product takes your staff away from other activities, you might lose other profit opportunities. If you overburden your staff, you might start losing key employees.
In addition to looking at your dollar costs for making and selling a product, review the impact it will have on your operations. Opportunity Cost When you make one choice, you lose the opportunity to make another.
For example, if you decide to buy radio ads, you might not have the budget to buy TV spots. If you buy new machinery that improves your production, you might not be able to give raises or bonuses this year.
Asking your sales staff to develop new customers might result in them providing less customer service to existing customers.View Essay - External and Internal Environments from ENGLISH at Oxford University.
Running head: EXTERNAL AND INTERNAL ENVIRONMENTS External and Internal Environments Students Name Professors. External environment refers to the major factors and forces outside the organization that have the potential to significantly affect the performance of an organization.
External environment is divided into two parts i.e. mega environment or general environment and specific or task environment. The Role of Environmental Analysis Planning ahead enables a person to think about the future. As a result, planning allows one to establish direction and purpose, which eventually leads to .
How Walmart Is Changing China. In , Robert Greenwald’s documentary Wal-Mart: pricing, and management from Walmart,” she says.
“At first, we didn’t quite understand, but they. General Environmental Factors Affecting Wal Mart Management Essay. Print Reference this. Wal-Mart is the number one retailer of general merchandise in North America.
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