10
Social factors that affect a firm
involve the beliefs, values, attitudes, opinions, and
lifestyle of persons
in the
firm’s external environment, as developed from
cultural, ecological, demographic, religious, educational, and ethnic conditioning.
Political
factors
define
the
legal
and
regulatory
parameters
within
which
firms
must
operate.
Political
constraints
are
placed
on
firms
through
fair-trade
decisions,
antitrust
laws,
tax
programs,
minimum wage
legislation,
pollution
and
pricing policies, and many other actions aimed at protecting employees,
consumers, the general public, and the environment
Technological
factors.
To
avoid
obsolescence
and
promote
innovations,
a
firm
must be aware of technological changes that might influence its industry. Creative
technological adaptations can suggest possibilities for new products, for
improvements
in existing products, or in manufacturing and marketing
techniques.
Ecological
factors
are
relationships
among
human
beings
and
other
living
things
and the air, soil, and water that support them.
2.2.1.2.
Industry Environment
The
nature and degree of competition
in an
industry on
five
forces: the threat
of new entrants, the bargaining power of customers, the bargaining power of supplier,
the threat of substitute products or services (where applicable), and the jockeying
among current contestants.
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