IExternal Environment Assessment Each of the following force

I.External Environment Assessment

Each of the following forces are outside the organization and require management to react in some way. There are comments in each section regarding the trends in this area and how they might impact the organizations performance.(Automatic Data Processing, Inc.)

Economic:

Demographic:

Socio-Cultural:

Technological:

Political/Legal:

Global:

Solution

I.External Environment Assessment

Each of the following forces are outside the organization and require management to react in some way. There are comments in each section regarding the trends in this area and how they might impact the organizations performance.(Automatic Data Processing, Inc.)

Economic , Demographic,Socio-Cultural , Technological , Political/Legal , Global

Answer :

Yes I am agree with the statement mentioned above. Following are the external factors which can not be controlled by management.So management needs a strong course of action for following points.

Economic :

Economic condition at domestic level as well as at global level plays a critical role in business scenario. Monetary policies , fiscal policies , Governments counter action on inflation situation. So when management / organizations are dealing with such situation they need to develop a strategic plan.

1) Analytical study of parliament budget

2) Global surveys of economic condition

3) Close observation on Share market , IMF etc

Demographic :

Demographic factors are second important factor.In globalization companies are supplying a product at global level. The customers perceptions changes as per the region ,area , location .So its companies strategy to understand the demographic factors before launching product in that particular area.

1) Surveys

2) Observations

3) Available information on web sites

Of the selected area

Above factors will help to study demographic factors in details.

Socio-Cultural :

Cultural & social aspects are very important.When companies are delivering their product . service to respective market think about the cultural social aspects of the same market.Its very important & sensitive issue. People are not tolerating the issues when it comes to culture or socials aspects.

Focus should be on :

1) National festivals

2) Close observation, customs , traditions

3) Likening & Disliking

4) Religion study , Majority community

Technological :

Technology plays vital role . Day by day technology is changing in product.So products become obsolete when technology is old one .So its company responsibility to study the technology aspects .

Following points can help for technology study :

1) Whats the customers requirement

2) Technology used by competitors

3) Whether this technology is affordable by organizations as well as customers

4) Features of this technology

Political/Legal :

Political & Legal aspects of each country plays a important role in business execution. What is the political system ? Political parties are helping or troubling. Political threat is very danger , Ruling parties troubles company in different way.

Same about legal aspects of business .All the rules associated with business like  Contact , Sales of goods act , consumer protection act , IT act , Industrial safety , Labor Laws etc

So analytical stuy of above factors is very important.

Global :

See in today\'s business scenario every company is associated with globalization .Directly or indirectly. When we are doing a business in global scenario its very important to study the

1) International environment

2) Cultures , Tradition of respective countries

3) Economic condition of that respective country

4) Inflation situation at global level

5) Recession period

6) Dependencies on respective countries

In short all above points are coming in this global scenario directly or indirectly.