Factors that influence decision making

1. Government, political and legal- Because the government is

tasked with protecting its people from external threats and
internal harm, protecting their property rights, and creating
mechanisms for resolving conflicts, they have a variety of
belief systems and objectives, and even a change in
administration can be problematic for businesses.
For eg. The Caribbean Single Market Economy has a
regional treaty for each business that enters, a clause of the
agreement when fully enforced, all firms that make up the
CSME will be subjected to it.
2. Social and cultural- Businesses are becoming more socially
responsible and conscious of the culture of the market they
are working in or approaching. The decision-maker must be
mindful of the fact that culture has a substantial impact on
various markets, like those for food, music, and fashion.
Some social and cultural factors that must be mndful of are
-Changing family structures
-improvement of education
-Population age and working habits

3. Technological-Decision-makers need to be aware of the

advantages and disadvantages of technology, as well as the
opportunities and risks that come with it. Due to
technology, there is new and improved manufacturing
technology that lowers waste, and there are numerous
social networks that connect individuals throughout the
world.
 4. Economic-In order to protect the business while doing each
activity, an economist's experience is helpful in analyzing a
variety of issues connected to investment volume, sales
promotion, competitive circumstances, financial positions,
labor relations, and government regulations.

5. Ecological-The environment's physical characteristics also

have an effect on how firms operate. The supply chain may
be impacted or raw material prices may rise as a result of
environmental variables like climate change, natural
catastrophes, and pollution levels.

6. Human and Natural Constraints- Humans learn and behave

differently because they differ in their thought, ability, and
attitude. The following considerations should be evaluated
by decision-makers:
- the employees' ability level, which may help or impede putting
particular ideas into action.
- the staff's and management's combined years of
experience
- the fact that everyone approaches danger and change
differently. Some workers might dislike change, while
others might be more risk-averse than others.
-Size and composition of the labour force
-the level of motivation of the workforce
-Additionally, natural resources are utilised as production
inputs. These include entrepreneurship, labor, capital, and
land..