11/10/2022 0 Comments The general![]() ![]() Because construction involves a wide array of industries–concrete, steel, wood, drywall, plumbing, banks, and many others–housing starts are a carefully watched measure of economic conditions. Housing starts in an economic indicator that measures the number of houses, apartments, and condos on which new construction has been started. During the Great Depression of the 1930s, the United States suffered through an unemployment rate of approximately 25%. The unemployment rate is the percentage of the labor force actively lookin for employment within the last four weeks. One of the most important duties of elected officials in the United States is to debate and set new tax policies.Įxamples of several key trends representing economic factors in the general environment are illustrated below. Countries that face frequent regime change and political turmoil have a harder time attracting foreign investments. The stability of the US government provides a source of confidence for foreign firms who want to do business in the United States. The word tariff derived from an Arabic word meaning “fees to be paid.” By levying tariffs and implementing other trade restrictions, governments can - to some extent - protect domestic firms from international competition. ![]() The use of child labor was once commonplace in the United States now firms face political scrutiny when using overseas suppliers that employ child labor. The extent to which companies developing clean energy sources should be subsidized by the government versus being left on their own to compete with providers of traditional energy sources is currently a hotly contested political issue. Legal factors include laws involving issues such as employment, health and safety, discrimination, and antitrust.Įxamples of several key trends representing political factors in the general environment are illustrated below. Technological factors include, for example, changes in the rate of new product development, increases in automation, and advancements in service industry delivery.Įnvironmental factors include, for example, natural disasters and weather patterns. Social factors include trends in demographics such as population size, age, and ethnic mix, as well as cultural trends such as attitudes toward obesity and consumer activism. Political factors include elements such as tax policies, changes in trade restrictions and tariffs, and the stability of governments.Įconomic factors include elements such as interest rates, inflation rates, gross domestic product, unemployment rates, levels of disposable income, and the general growth or decline of the economy. Below we describe each of the six dimensions associated with PESTEL analysis: political, economic, social, technological, environmental, and legal. PESTEL analysis is a popular framework for organizing these factors and trends and isolating how they influence industries and the firms within them. Wise executives carefully examine each of these six segments to identify major opportunities and threats and then adjust their firms’ strategies accordingly ( Table 3.1 “PESTEL”).Įxamining the general enviornment involves gaining an understanding of key factors and trends in broader society. In particular, PESTEL reflects the names of the six segments of the general environment: (1) political, (2) economic, (3) social, (4) technological, (5) environmental, and (6) legal. PESTEL is an anagram, meaning it is a word that created by using parts of other words. PESTEL analysis is one important tool that executives can rely on to organize factors within the general environment and to identify how these factors influence industries and the firms within them. Because the general environment often has a substantial influence on an organization’s level of success, executives must track trends and events as they evolve and try to anticipate the implications of these trends and events. The latter set of factors are said to exist within the general environment. ![]() The Elements of the General Environment: PESTEL AnalysisĪn organization’s environment includes factors that it can readily affect as well as factors that largely lay beyond its influence. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |