Research Papers Environmental Factors In Marketing

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For example, Congress passed the to deregulate the telecommunications industry.

As a result, competition increased and new opportunities arose as traditional boundaries between service providers blurred.

No one business is large or powerful enough to create major changes in the external environment.

Thus, managers are primarily adapters to, rather than agents of, change.

PEST analysis (political, economic, socio-cultural and technological) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.

Research Papers Environmental Factors In Marketing Research Paper On Smoking

It is part of an external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro-environmental factors to be taken into consideration.Inflation and interest rates are other areas that change according to economic activity.Through the policies it sets, such as taxes and interest rate levels, a government attempts to stimulate or curtail the level of economic activity.Fluctuations in the level of economic activity create business cycles that affect businesses and individuals in many ways.When the economy is growing, for example, unemployment rates are low, and income levels rise.To compete successfully, business owners and managers must continuously study the environment and adapt their businesses accordingly.Other forces, such as natural disasters, can also have a major impact on businesses.For example, a company which has borrowed heavily will need to focus more on the economic factors (especially interest rates).Furthermore, conglomerate companies who produce a wide range of products (such as Sony, Disney, or BP) may find it more useful to analyze one department of its company at a time with the PESTEL model, thus focusing on the specific factors relevant to that one department.A company may also wish to divide factors into geographical relevance, such as local, national, and global.Businesses do not operate in a vacuum but rather in a dynamic environment that has a direct influence on how they operate and whether they will achieve their objectives.

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