The Seven External Factors of the Market Place

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The Seven External Factors of the Market Place Today I will explain one by one each of the seven external factors. To start: The Political-Legal Environment: It is a political and corporate relationship. Companies aim to franchise with and support political candidates through their activities to help promote their business. Socio-cultural Environment: A business’ development and prosperity is based on the cultural and social value of whatever they have to offer. The world’s view on things are always involving so a business must always stay up on these ever changing trends to better promote and develop new products. (Ebert & Griffin, 2009) Technological Environment: The technological environment has been created to update and refresh our views and lifestyles by creating new goods and services. Economic Environment: The economic environment is the platform for all businesses world wide. It relegates a business spending patterns, pricing, marketing strategies etcetera. Competitive Environment: The competitive environment consists of the general competition between companies. They compete for the limelight to attract buyers. This has to be done properly for proper promotion is crucial to a business’ continuity. Demographic Variables: is akin to data mining; used to help identify consumer qualities; such as the age, gender, income, race, and etcetera. This helps determine a markets segmentation strategy. As for the Natural Environment: it is the typical weather, and natural resources that concern human continued existence and market activity. Natural Environment, 1999-2010) Now I am going to explain the advantages and disadvantages of two of the external factors? One of the two that I have chosen is the Competitive Environment. There are many but just to name a few (Ollman. B, 2004-2010) some advantages are: there is more modernization as firms look for new goods to sell and cheaper ways to do their work; a great diversity of consumer goods become available for those who have the money to purchase them; and hefty parts of the public take on a vibrant air as everyone busies him or herself trying to sell something to someone else. As for some disadvantages: over production of a product in the attempt to out-source another company; unemployment due to a lack in profit; and growing social and economic inequality. As for the advantages and disadvantages for a Technological Environment (Some advantages ad disadvantages of information technology, 2008) are: a better communication outlet. With the aid of technology, communication has also become affordable, quicker, and more resourceful. It is known to be cost effective for businesses and at the end of the day gives way to profits which will mean better pay and less exhausting working conditions. Culturally technology has opened a window for all cultures of all types of backgrounds and dialects to be able to communicate and relate with each other. Another advantage is the advantage of time. Technology has made it achievable for businesses to be open 24 x7 all over the world if they so chose. This means that a business can be open anytime, anywhere which simultaneously makes it more convenient for the consumer to purchase things anytime and anywhere. Some disadvantages are: unemployment. Technology has appropriated many jobs while at the same time- it has created a lot of down sizing and out sourcing; that means that a lot of lower and middle level jobs have been removed and technically replaced causing more people to become unemployed. Privacy has also been considered an issue. Yes, it has made communication easier and faster but it also gave an opening to hackers; making ones once personal and confident information public. References: All Business. A D&B Company. (1999-2010). Business Definition for Natural Environment Retrieved from: https://www. llbusiness. com/glossories/natural-environment/4964749-1. html Ebert, R. J. & Griffin, R. W. (2009). Business Essentials. (7th Ed). Upper Saddle River, N. J: Person-Prentice Hall Ollman. B. (2004-2010). Market Economy: Advantages + Disadvantages Retrievedfrom:https://www. nyu. edu/projects/ollman/docs/china_speech2. php Small Business Bible. (2008). Some advantages and disadvantages of information technology Retrievedfrom:https://www. smallbusinessbible. org/advan_disadvan_informationtechnology. html

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