2. Political Factor
Government regulations and legal issues affect a company's
ability to be profitable and successful, and this factor looks at how that
can happen. Issues that must be considered include tax guidelines,
copyright and property law enforcement, political stability, trade
regulations, social and environmental policy, employment laws and
safety regulations.
3. Economic Factor
The economic factor examines outside economic issues that can
play a role in a company's success. For this analysis, look at interest
rates, exchange inflation, unemployment, gross domestic product, credit
availability and rise and fall of the middle class.
4. Social Factor
With the social factor, a business can analyze the socioeconomic
environment of the given industry's market to understand how consumer
needs are shaped and what brings them to the market for a purchase.
Among the items that should be examined are demographics, population
growth rates, age distribution, attitudes toward work and job market
trends.
5. Technological Factor
Technology plays a huge part in business, and it can impact it
either negatively or positively. With the introduction of new products,
new technologies and services, a certain marketplace can have a tough
time adjusting so it's important to assess the technology from all angles.
