POLITICAL

ECONOMIC

SOCIOCULTURAL

TECHNOLOGICAL

• Political pressures• Laws and regulations• Stability of Political Environment

• Local, national and world economy impact

• Recession• Inflation rates

• Consumer Choice• Diet Craze• Social Media

• Automation on manufacturing

• New equipments and factories

• For Marketing

POLITICAL ANALYSIS

examines the current and potential influences from political pressures, the stability of political environment,

government policies/laws

changes in laws and regulations, such as accounting standards, taxation requirements and environmental laws

and foreign jurisdictions might affect the book of the company as well as their entry in foreign country

Example:Regulations by Food and Drug Administration (FDA)

Consumer laws, discrimination laws, employment laws, & health/safety laws by OSHA

ECONOMIC ANALYSIS

examines the local, national and world economy impact which is also includes the issue of recession and inflation

rates

Examples of economic factors:Interest rates, the level of inflation Employment level per

capita, long-term prospects for the economy GDP per capita

Example:The soft drink industry experiences market shocks in

periods of recession (early 200o’s)For major soft drink companies, there has been economic

improvement in many major international markets

SOCIOCULTURAL ANALYSIS

analyzes the ways in which changes in society affect the organization such as changing in lifestyles and attitudes of

the market

Sample factors: Consumer choice, attitude of consumers towards foreign products, changes in product preferences of consumers,

lifestyle/health concerns

Example:Consumers from the ages of 37 to 55 are also increasingly

concerned with nutrition thus increasing the demand overall and in the healthier beverages while the demand

for carbonated drinks decreases

TECHNOLOGICAL ANALYSIS

introduction and the emerging technological techniques are valued

Analyze the opportunities for new products and product improvements in terms of marketing and production

Example:New tech advancement in manufacturing and quality

improvement concepts are improving bottling operations efficiency.

Technological advancement helps create new brands and product lines to meet consumer preferencesFirms are able to obtain valuable information and

suggestions from consumers about potential or current new products  through social media