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Environmental Factors
Environmental Factors
Environmental Factors
Environment is of 2 types:
1. Specific /Task/ Micro-level: Those external factors which directly affect an organization -- Supplier,
Customer, Competitor, Regulator, Publics
2. General/Macro-level: External factors which affect many organizations at the same time --
Economic, Socio-cultural, Political-Legal, Technological, International
1. Specific Environment
2. General Environment:
Economic: GDP, Per capita income, Interest rate, savings propensity, Inflation, Foreign currency reserve &
exchange rate, Taxation, Money supply, capital investment etc
Social: Society, Social relationship, Population distribution / demography, literacy level, life expectancy,
rural-urban migration, Life style changes, food habit etc
Legal-political: Political stability, democratic practice, Law & order situation, public security, Justice etc
International: War and regional conflict, Relationship and dependence on foreign investment, exposure to
international trade, Global market situation, Commodity and energy price & supply fluctuation etc
“The way we do things around here”: “To know the ropes to step, and the ropes to skip”