Summary : External Environment Factors

Demand may be price inelastic - Demand is not very responsive to changes in price. This means revenue will fall.

Political –how changes in government policy might affect the business, like a decision to subscribe building new houses in an area could be good for a local brick works.

Strategic planning is essential prior to any individual or company deciding to engage in international business whether as direct/indirect investment or through trade. An evaluation of risks should be considered and strategies developed accordingly prior to any potential investment in a foreign country. One such risk which requires consideration is political risk i.e. "governmental or societal actions and policies, originating either within or outside the host country, and negatively affecting either a select group of, or the majority of, foreign business operations and investments."

that affect the way businesses operate. How a political trend affect business depends on the type of industry that we are looking at; since some legislations are only directed to a certain type of industry. Economic forces can also cause a crisis in an organization. Some factors such as the unemployment rate, interest rate health care costs and others can definitely affect the economic stability of any organization. Top management must consider political and economic trends that affect the specific

products to suit customer’s needs, Coca-Cola was able to make a positive step forward in their

Political force describes the impact of politics in marketing decisions. It takes into consideration the influence of a government that may affect the business environment. This includes the business cycle of a nation, monetary policy, fiscal policies, and trade policies. For instance in 2013 the Qantas Airlines was severely affected by the political unrest in Thailand which in result, caused a major concern for the organisations to generate adequate revenue in that particular region. In relation to that situation, Qantas also didn’t manage to obtain their desired target of revenue in the Middle East region due to the political instability that most Middle East country was facing from 2003 to 2010. In nut shell, the p;,political factor can relentlessly affect the airline industry at a particular region because people will normally think twice before deciding on their holiday location.

The strategic plan St. Joe Company has instituted not only adds amenities and jobs that will be managed by their luxury division but also includes added jobs and economic influences through outside companies as well. A fantastic example of how these partnerships will be influenced through their strategic plan implementation is the recent partnership with GKN Aerospace in their Venture Crossings area. GKN Aerospace proposes to lease this new manufacturing facility, St. Joe Company 's Venture Crossing Centre, which will be developed and owned by a subsidiary of St. Joe and

In this part we aim to give a thorough view of Lannet 's external environment in order to understand the particularities and variables of the Greek telecommunications market. In this attempt we have conducted a PEST analysis that helped us get a clear view on the different aspects of the Greek market, a life cycle analysis and a competitors and five forces analysis so as to examine the different factors that affect the Greek telecommunication market.

The political factors are the factors that is related to the governments policy which can have an effect on their business. Most businesses keep an eye on any political factors such as any new legislations which have been introduced or any old legislations which could have

Political factors relate to way in which changes in the government and government policies can influence the business.

Through my extensive government experience, I have developed the capability of identify and evaluate external and internal factors that may impact departmental operations. An example of my ability to think strategically during times of change is when the local government area I was employed with amalgamated with 3 other local government areas.

• Down Trend Economy: As a luxury product sales could slump significantly if the economy takes a down turn.

The political-legal environment is that which consists of government bodies, pressure groups and laws. It is pertinent for companies to keep abreast of and change in political environment because these changes can have dramatic effect. Change in political environment can see legislation introduced that will not make selling or providing a product feasible or somewhat difficult. There are many political factors and laws that can affect business. Pricing, competition, fair trade packaging, labelling, advertising, product safety and minimum wages can all affect business. The

business the sales will decrease and therefore the profits will fall, the long term impact of this could

Economic: The industry’s performance is highly tied in with the economy. A weak economy will mean weak sales.