List the aspects of an organization’s environment that can influence its long-term decisions

1. Economic Environment 💰📉

This refers to the financial condition of the market where the business operates.

• Example: If inflation is high 📈, the cost of materials increases, so a company might raise product prices or cut costs.
• Impact: A business might focus on selling budget-friendly products during a recession.
• Think of It As: The market’s wallet—how much money is flowing around?

2. Political and Legal Environment ⚖️🏛️

This includes government policies, laws, and regulations.

• Example: A government bans plastic bags ❌🛍️, so companies switch to biodegradable packaging.
• Impact: Businesses must stay updated with rules to avoid fines and build a good reputation.
• Think of It As: The rules of the game—every player has to follow them.

3. Social and Cultural Environment 🌍👨‍👩‍👧‍👦

This is about people’s lifestyles, beliefs, and preferences.

• Example: With rising health consciousness 🥗🏋️, companies start offering organic food or fitness equipment.
• Impact: If a product doesn’t match societal values, it won’t sell well.
• Think of It As: The crowd’s vibe—what they love or avoid.

4. Technological Environment 💻🤖

This covers new technologies that change how businesses work.

• Example: The rise of online shopping 🛒 led businesses to create e-commerce platforms.
• Impact: Companies that adopt technology early often stay ahead of the competition.
• Think of It As: A rocket—technology helps businesses soar.

5. Competitive Environment ⚔️🏆

This is about what competitors are doing.

• Example: If a rival offers discounts 💸, a company might launch a sale or improve its product quality.
• Impact: Businesses must always keep an eye on competitors to stay in the game.
• Think of It As: A race—stay ahead or risk losing.

6. Environmental and Ecological Factors 🌱🌦️

This is about the impact of nature and the need for sustainable practices.

• Example: Climate change 🌍🔥 pushes companies to adopt solar energy or eco-friendly products.
• Impact: Sustainable businesses attract eco-conscious customers and meet regulations.
• Think of It As: The planet’s health—businesses must care for it to thrive.

7. Global Environment 🌐✈️

This focuses on international trends and events.

• Example: A global pandemic 🦠 affects supply chains, so companies look for local suppliers.
• Impact: Businesses that adapt to global changes can expand and reduce risks.
• Think of It As: The bigger picture—what’s happening around the world?

In Simple Terms:

Organizations are like boats 🚤 navigating through an ocean 🌊. These environmental factors are the waves, winds, and weather that can push them forward or pull them back. If businesses adjust their sails (strategies), they’ll reach their destination smoothly. 🏝️