The managers changing work environment you will learn about

The manager\'s changing work environment

you will learn about the general environment which can affect a company\'s success including economic forces, technological forces, sociocultural forces, demographics forces, political forces and international forces. Provide examples of three of these forces.

Solution

Technological Forces

In power transmission & distribution, it was very difficult to know about power shortages & surpluses in particular region. Sometimes this information takes much time before analysis. With the advent of SCADA & IT system, now it is easier to know within seconds of consumer demand, pattern usage, power shortage etc.

Political Forces

In United Kingdom in 1980s Margaret Thatcher became prime minister of the country. Before her, various public sector firms in UK were facing many problems due to labour unions, uncompetitive practices, various losses etc. Maggie, as she was known to her inner circles, appointed Friedrich Hayek who was a free market economist. Along with him, Maggie started deregulation of public firms which privatized them & made UK firms more competitive.

Economic Forces

With recession in 2008 in USA, federal Reserve reduced interest rate to 0% and kept it there for many months to increase spending. Now there are many signs that worst is over for USA & market is rebounding. Therefore Federal Reserve is contemplating about increase in interest rate which would have ripple effect in emerging economies where investors were getting high returns.