MGT211

Introduction to Business
Lecture 02

External Factors
Economy of the country
Per capita income of the country
General employment or unemployment
Economic Growth
Exchange rate
Inflation rate

Demographic factors
Demographic factor is a study of population
Population brings customers.
Population tells the size of market and nature

of customers.

Demographic factors
Total Population
Population Distribution

Distribution on the basis of gender

In Pakistan female population is further
divided into two categories:

Household Women
Working Women

Demographic factors
Population growth rate

The rate at which population of an area

increases/decreases.

Political and Legal factors

Political Factors

Preference and priorities of the Government

Attitude of the Government towards Exports
Government taxation policy

Political and Legal factors

Legal factors

Laws related to Health

Laws related to Imports and Exports
Laws related to Taxation
Laws related to Packing
Laws related to Child Labor
Laws related to Labor Union

Technological Factors
Business people have to pace with the

technological advancements.

Sociocultural Factors
Religion

Followers of one religion have influence over

the buying behavior of the society.

Natural Factors
Act of God
Natural factors are out of our control
Business people will develop product

considering natural resources