General external environment for Rite Aid * technological trends - * demographic
ID: 452655 • Letter: G
Question
General external environment for Rite Aid* technological trends - * demographic trends - * economic trends - *political/legal trends - * sociocultural trends - *global trends - General external environment for Rite Aid
* technological trends - * demographic trends - * economic trends - *political/legal trends - * sociocultural trends - *global trends -
* technological trends - * technological trends - * demographic trends - * economic trends - *political/legal trends - * sociocultural trends - *global trends -
Explanation / Answer
Influence Of External Environment to Business Organizations
Organizations may have direct or indirect influence on its broad environment like society , the economy, technology, global politics and so on.And it can buffer itself from threats and take advantage of oppurtunities.
Technological Trends
Demographic Trends
Demographic change is the prime reason for organizations required to adapt their practices in order to respond to increasing diversity within labor markets.
Ageing population of global and the new generation of young professionals entering the market are changing the shape of the workplace. Organizations required to look forward and prepare for the workforce of the future and need to understand the organizational changes this will bring.
While new ways of organizing will be increasingly prominent for organisations to succeed in the future and it will also be vital to take into account the deep demographic changes occurring in the workplace.
The demographic variables like the following affect the business organizations in certain ways
Income acts as demographic variable that can affect businesses. A company's products generally appeal to certain income groups.
People with lower incomes value is a major determinant in the products they purchase.Hence company can best reach lower income people through discount retailers and wholesalers and for higher income people special retail shops to attract them.
Age is another demographic factor that impacts businesses. A company's products and services are more likely to appeal to particular age groups. for instance younger people under 35 are often the prime consumers to purchase high tech products like cell phones, electronic books and video games.
Human beings buying preferences also differ by geographic region which is another type of demographic factor in affecting the business. Those firms who meet buyers' needs and requirements in certain geographic regions can earn higher sales and profits.
Economic Trends
Entrepreneurship tend to focus on identifying and satisfying consumer needs in specific niche markets but all businesses firms can be affected by large scale economic trends.
Economic reasons that commonly affect businesses which include consumer confidence, employment, interest rates and inflation.
Consumer confidence is an economic factor that calculates overall consumer optimism about the state of the economy. Confident consumers those who are good earners tend to be more willing to spend money where consumers with low confidence those who are poor in earning cannot spend money much which means businesses are more likely to prosper when consumer confidence is high.
consumer confidence can represent opportunities for new businesses to enter the market while the people of low confidence may force companies to cut costs to maintain profits.
Where unemployment is low then consumer spending tends to be high because most people have income to spend, which is good for businesses and helps to drive growth
Political / Legal Trends
The Political and Legal environment can be described as the laws and regulations that business firms has to follow in order to make sure the business owners do not get arrested or have the business fined for noncompliance of some regulation.
Political forces concerns the influence of political parties or leaders and pressure groups like civil society organization and trade unions. These forces can negotiate or dictate policies that may alter the course of business in your industry.
Escalation of rivalry between political parties can be result in disastrous outcomes. For example, the partial shutdown of federal government services in October 2013 was resulted by endless partisan feuds between Democrats and Republicans and had caused negative effects in countless industries across the country. This shows how political forces portend far reaching implications on particular business firms.
Every state has its own unique regulations that guide licensing needs, incorporation procedures and labor issues. Legal factors includes discrimination of law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect the company operates, its costs, and the demand for its products.
sociocultural trends
Social factors consists the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and importance on safety.
Trends in social factors can affect the demand for a company's products and how that company operates.
The social and cultural factors refers to the structure and dynamics of individuals and groups and their behaviors, believes, lifestyles and thought patterns etc. many of these trends can to affect marketing operations.
Global Trends
Today's business environment is highly influenced by global forces and trends that tends to define how organizations interact with customers and respond to competition.
As globalization continues businesses will be represented with opportunities and face challenges.
some of the global factors affect business are
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