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