The following will be discussed in this chapter: Political, govt., & legal forces; technological forces; revolutionary technological forces; internet changes the nature of opportunities and threats; competitive forces; collection and evaluation of information on competitors. | Management Practices Lecture-7 1 Recap Economic Forces Availability of credit Interest rates Social, cultural, demographic and environmental forces Life expectancy rates Per capita income 2 Today’s Lecture Political, Govt., & Legal Forces Technological Forces Revolutionary technological forces Internet changes the nature of opportunities and threats Competitive Forces Collection and evaluation of information on competitors 3 Political, Govt., & Legal Forces Political, Governmental, and Legal Factors Represent Key Forces Federal, state, local, and foreign governments are major regulators, deregulators, subsidizers, employers, and customers of organizations. Political, governmental, and legal factors therefore can represent key opportunities or threats for both small and large organizations For industries and firms that depend heavily on government contracts or subsidies, political forecasts can be the most important part of an external audit. 4 Political, Govt., & Legal Forces . | Management Practices Lecture-7 1 Recap Economic Forces Availability of credit Interest rates Social, cultural, demographic and environmental forces Life expectancy rates Per capita income 2 Today’s Lecture Political, Govt., & Legal Forces Technological Forces Revolutionary technological forces Internet changes the nature of opportunities and threats Competitive Forces Collection and evaluation of information on competitors 3 Political, Govt., & Legal Forces Political, Governmental, and Legal Factors Represent Key Forces Federal, state, local, and foreign governments are major regulators, deregulators, subsidizers, employers, and customers of organizations. Political, governmental, and legal factors therefore can represent key opportunities or threats for both small and large organizations For industries and firms that depend heavily on government contracts or subsidies, political forecasts can be the most important part of an external audit. 4 Political, Govt., & Legal Forces Government Regulations Key opportunities & key threats Tax rates Lobbying efforts Patent laws 5 Political, Govt., & Legal Forces Increasing Global Interdependence Impact of political variables Formulation of Strategies Implementation of Strategies Strategists in a global economy Forecast political climates Legalistic skills Diverse world cultures 6 Political, Govt., & Legal Forces Globalization of Industry Worldwide trend toward similar consumption patterns Global buyers & sellers E-commerce Instant transmission of money & information across continents 7 Key Political, govt., & legal variables Government regulation/deregulation Tax law changes Special tariffs Political Action Committees (PACs) Voter participation rates Number of patents Changes in patent laws Environmental protection laws Equal employment legislation 8 Key Political, govt., & legal variables Import-export regulations Political conditions in other countries Government budgets World oil, currency, & labor markets Location and
