Environmental factor
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Comments
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Political
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What is the political situation of the country (or internationally) and how can it affect the industry?
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How does the government approach corporate policy, corporate social responsibility, and environmental issues? What impact would this have on the industry, and is it likely to change in the future? Are there future elections that could affect the industry?
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Consider: tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability, level of corruption and bureaucracy, freedom of press. Consider political impact on health, education, and infrastructure.
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Economic
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How the economy influences the industry’s performance?
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How stable is the economy? Are customers’ levels of disposable income increasing or decreasing?
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Consider: economic growth potential, interest rates, exchange rates, inflation rates, unemployment rates, disposable income levels, labour costs, price fluctuations, stock market trends, level of globalization in the industry and how these factors impacts companies in the industry.
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Socio-cultural
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The attitudes, values, norms, beliefs, behaviours and associated demographic trends characteristic of a given geographic area
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How does a society’s views and beliefs influence an industry? How likely is there to be a shift in views/values? What impact will these expected changes have on an industry?
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Consider: demographics, generational shifts, society’s levels of health/education/social mobility, social classes, family size and structure, minorities and expatriates, customer buying habits, immigration and emigration rates, gender distribution, employment patterns, job market trends, attitudes towards work, attitudes toward imported goods and services, attitudes towards work, leisure, career and retirement, and saving and investing, social attitudes and social taboos, religion and lifestyle choices and how these factors could influence an industry.
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Technology
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Are there any new technology changes that will affect the industry?
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Consider: new technologies, new technologies available to competitors that are out of reach for your company, rate of technological change, spending on R&D, communication infrastructure, government restrictions (dial-up vs. fiber), infrastructure restrictions (remote working).
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Legal
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Legal restrictions in place (or may be in place in the future) that can affect the industry.
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What is the likely timeline for proposed legislative changes?
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Consider: human rights, consumer law, antitrust law, commercial law, copyright/patents/intellectual law, data protection, employment law, health and safety law, and international law.
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Environmental
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Ecological and environmental factors such as weather, climate, climate change, and how the weather may affect an industry.
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Consider: weather, climate change, laws regulating environment pollution, air and water pollution, recycling, waste management, “green” products, endangered species, renewable energy, industries such as tourism, farming, and insurance are impacted by the environment. Consumer attitudes also can influence an industry.
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