Answer to Question #192526 in Management for Gabby

Question

3.3 By conducting an environmental analysis, we have identified key factors of the business environment that has been affected by an epidemic such as Covid-19. As a business consultant you have been asked to provide feedback on the relevant indicators and effects of each factor to senior levels of management: 3.3.1 Social (10) 3.3.2 Ecological 3.3.3 Economical (10) (10)

Answer 1

An environment has a significant impact on businesses. Firms are impacted by all situational variables that decide day-to-day situations. As a result, companies must continuously assess the demand and trade climate. Managers and strategists conduct an environmental audit to determine where their market is right now. It also aids in predicting where the company will be in the future. Before taking action, managers must consider all environmental factors, gather all relevant data, identify opportunities for the organization, and acknowledge the risks the business faces.

All of the determinants of the economy and its condition are included in economic factors. These are the variables that will determine which way the economy will travel. As a result, companies evaluate this aspect in light of the climate. It aids in the creation of strategies that are sensitive to changes. Managers may analyze determinants such as inflation and interest rates, buyer disposable income, credit availability, unemployment rates, monetary and fiscal policies, and foreign exchange rates to determine how economic factors are influencing their company.

Countries differ from one another. Every country has its own mentality. Businesses are affected by these behaviors. Social factors can have an effect on product and service sales in the long run. Customers' cultural effects, gender and related demographics, lifestyles, domestic systems, educational levels, and wealth distribution are some of the social influences in a business that senior managers should consider.

The location has an effect on business transactions. Climate change will have an effect on trade. Consumer reactions to specific offerings may also be a problem. Agribusinesses are the ones that are most affected. Managers must understand environmental factors such as the firm's geographic location, climate and weather, waste disposal rules, energy use regulations, and people's attitudes toward the environment.