Environmental Analysis

Government'

Environmental Analysis
Government'

Questions needs to be consider while analyzing &

developing marketing strategy:
What key political and regulatory developments
are taking place now? How do these changes
affect your market and customers? How do these
trends affect your industry, suppliers, partners,
and customers?
What tax / other incentive are developed which
may affect the strategies?
What are the political risk of operating in
governmental jurisdiction?

Environmental Analysis
Government'

Why considering
Government Analysis for
developing marketing
/organization strategies

Environmental Analysis
Government'
An organization will not be able to gain success, good
reputation and trust if it will not consider legal and political
sector as part of their strategy. Political and legal sectors
include the needs of the company to follow the given policies
and regulations of the government in order to be considered
as legal and authorized business company.
We have to keep in mind
Tax policy
Employment laws
Political stability
Environmental regulations
Trade and tariff restrictions

Environmental Analysis
Government'
Political factors influence organizations in many ways. Political factors can
create advantages and opportunities for organizations. Conversely they can
place obligations and duties on organizations. Political factors include the
following types of instrument/conditions:
Legislation such as the minimum wage or anti discrimination laws.
Voluntary codes and practices
Market regulations
Trade agreements, tariffs or restrictions
Tax levies and tax breaks
Type of government regime e.g. communist, democratic, dictatorship
Political stability & ideology
Non conformance with legislative obligations can lead to sanctions such as
fines, adverse publicity and imprisonment. Ineffective voluntary codes and
practices will often lead to governments introducing legislation to regulate
the activities covered by the codes and practices.

Environmental Analysis
Economics'

Economic

Environmental Analysis
Analysis
Economics'

Questions needs to be consider while analyzing

& developing marketing strategy:
What are the economic prospect & inflation
channels of the country in which firm is
operates? How it can affect the strategy?

Environmental Analysis
Economics'
In tough economic times, resources within an organization are
scarce and must be allocated in the most effective way
possible. Every decision to invest in technology, infrastructure
or another company must be based on sound economic
analysis. In order to maximize the Return on Investment (ROI),
an organization first needs to have a thorough understanding
of both the potential revenue stream and costs involved, and
importantly, how these are likely to change in the future. This
requires intimate knowledge of the market, competition,
regulation, supply chain and technologies involved.

Environmental Analysis
Economics'

Are economic changes affecting your company, your

customers or your suppliers? Does this create
opportunities, or does it threaten your market
potential or your customers economy?
Focus your analysis on:
economic growth rate
interest rates
currency changes
inflation