Yes, it is true. All environmental factors are interrelated and exert the influence upon each other.
Political Factor: Political factor is the outcome of a combination of various ideologies advocated by different political parties. The rules and regulations and the laws that monitor and regulate the market forces are framed and promulgated by the Government. The policies of the Government in power have to be reckoned and implemented:
(i)for taking a business decision,
(ii)growth of trade industry and commerce,
(iii)aims at improving infrastructural facilities which encourage new business ventures, (iv)relaxation of import-export policies, Example: Taxation Policy, Trade regulations, Governmental stability, Unemployment Policy, etc.
Socio-cultural Factor:
(i)Business is born and develops in society and in it various social factors exist.
(ii)It involves a close study of the life styles, beliefs, customs, conventions, practices, etc. Expectations of individuals their preferences on the basis of their family background, age group and education will also form a part of this study.
(iii)This is a crucial process for the simple reason that the product or service that the entrepreneur envisages will have to satisfy the need of these individuals.
Example. An entrepreneur wants to open a showroom of branded foot wears.
Economic Factor: It includes the close study of important variables like supply and demand. Details of consumer trends, economic preference, costing, discounting etc. are all economic decisions. Inflation rate, growth in spending power, economic details will also help the entrepreneur in determining the size of the project and the reasons of finance.
(i)Legal: Legal scanning of the environment demands analyzing the legal requirements in the establishment of a project. Managing of the project and also in getting assistance from different sources, e.g. welfare of employees, safety, simple contracts entered into with suppliers of raw materials financer’s, health and safety.
(ii)Product Safety: Advertising regulations, product labeling, labour laws etc., real estate owners., etc. require legal assistance. Technical Factor: It is influenced by government spending on research, new discoveries and development, Internet, E-commerce, Social Media, Electronic Media, Research and Development, Rate of technological change government and industry focus employment law.
Value points:
(i) Truthfulness
(ii) Universal
(iii)Faithful justice
(iv) Discipline
(v)Helpfulness
(vi)Readiness to cooperate.
