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External Industry Factors

External Industry Factors. External Industry Factors/Forces are also known as the External Environmental Factors/Forces. These Factors/Forces include: Economic Forces Social, Cultural, Demographic, and Natural Environmental Forces Political, Governmental, and Legal Forces Technological Forces

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External Industry Factors

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  1. External Industry Factors • External Industry Factors/Forces are also known as the External Environmental Factors/Forces. These Factors/Forces include: • Economic Forces • Social, Cultural, Demographic, and Natural Environmental Forces • Political, Governmental, and Legal Forces • Technological Forces • Competitive Forces

  2. Economic • Economic Forces can include unemployment, interest rates, inflations, value of money, etc.

  3. Social, Cultural, Demographic and Natural Environment Forces • Consider what trends are in our world. • The US is getting older. Fifty-five percent of the workforce are baby-boomers and ready to retire. However, according to research, fifty-eight percent of those preparing to retire have less than $25K in the bank • However, research indicates that the older generation is beneficial to restaurants, retirement homes, and tourism.

  4. Social, Cultural, Demographic and Natural Environment Forces (cont’d) • Organizations have realized their market is not isolated domestically, but globally as well. • Americans are purchasing more products online • By 2075, there will be no racial majority

  5. Political, Governmental and Legal Forces • Regulations and legalities impact organization substantially with changes to the law and tax rates. • Some organizations are electing to move operations globally to be more competitive

  6. Political, Governmental and Legal Forces • Governments world wide are being pressured to protect domestic businesses. • In addition, organization are electing to outsource globally to decrease operation expenses. This impact many including unions.

  7. Technological Forces • Organizations must utilize technology to their benefit • Internet purchasing has changed the way organizations conduct business • It has increased the time of distribution • It has changed the way people shop

  8. Competitive Forces • Who is your direct competition • Who is your indirect competition • What are they doing that gives them a competitive advantage

  9. Competitive Forces cont’d • Here is a thought • Many times organizations identifies what their competition is doing and they tried to duplicate that. The This can be very dangerous and disastrous if the organization does not have the same resources (human, personnel, and financial) as their competition

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