Summary : External Environment Factors

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Summary of External Environment Factors Overall, there has been a growing need for structured cabling which is being driven by PoE and IP convergence and new higher performing cabling systems to support ongoing advancements in networking technologies. “The economic outlook for structured cabling is stable and growing in the low single digits” (R. Carlson, personal communications, November 10, 2015). Using the PEST analysis, the following political, economic, social and technology trends may impact the telecom industry and the Siemon Company’s strategy and vision to manufacture cable. Political Political factors determine the extent to which a government may influence the economy or a certain industry. For example, if the government were to raise taxes for Connecticut businesses, the execution of this strategy plan may not be a wise business choice. Manufacturing cable requires a large capitol purchase and additional facilities to house the cable manufacturing operations. The company may be forced to terminate this plan and look for alternative ways to increase revenues such as through vertical integration that would help to build a market at reduced costs. If not aware of the political happenings within the environment, these factors can affect a business’s strategic plan significantly. Economic Economic factors are tied with the health of the economy so if purchasing power of the consumers goes down so will supply and demand which could directly impacts the industry.
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