The internal factors determine how the organization moves forward, both as a self-contained organizational entity and in response to its external environment. Mission Why does an organization exist? What is its purpose?
Unlike the micro environment of a retail store, companies in the retail industry usually cannot influence or change the macro environment and must adapt to changes as they arise. The macro environment includes economic, technological, societal and governmental influences. A retailer must understand the role of each to compete within the retail industry.
The Role of Technology in the Macro Environment Technology not only creates new products for retail companies to sell, but also plays a major role in changing the way retail companies do business.
Technological advancements such as the internet offer retail customers additional shopping options. Technology also opens new retail markets, with auction platforms like eBay and web-based retailers such as Amazon. Barcoding and computerized billing systems have improved the retail industry by allowing retailers to develop new processes that increase efficiency.
Point-of-sale systems increase sales by allowing retailers to process cash, check, credit- and debit-card payments. The Role of Government Laws, regulations and other government policies can have a number of positive or negative effects on the retail industry.
Government assistance, such as government-backed loans and subsidies, can help fledgling retailers grow or allow an established company to keep costs low for consumers. However, government policies can also hinder businesses by imposing regulations that increase costs, such as requiring the development and integration of new systems or procedures or establishing a minimum wage that small retailers may not be able to afford.
The retail industry also relies heavily on government-supported road and transportation infrastructure to move goods and bring customers to retail locations. The Role of Economic Factors Retail sales are driven by the economic environment.
A robust economy correlates to an increase in consumers' disposable income, increasing sales and allowing retailers to sell more valuable goods, such as high-end electronics.
On the other hand, a sluggish economy decreases consumer confidence and can cause people to spend less, leading to declining sales and forcing retailers to lower prices. Economic and governmental factors often overlap in areas such as corporate taxation, import and export laws, and inflation, which can decrease consumer purchasing power.
The Role of Social Factors Changes in social values and trends impact the goods retailers sell and how retailers relate to consumers. The retail industry is often under pressure to develop and implement socially responsible business practices, such as selling environmentally-friendly products, placing warnings or restrictions on potentially harmful goods, and removing recalled or controversial products from the shelves.
Again, government and social factors overlap in many areas including employment discrimination and, in some states, the recognition of same-sex partners as legally entitled to employer-provided benefits. Retailers that fail to conform to new social norms often lose business to companies that are willing to adapt to changing societal values.
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As a high school student, she offered financial literacy lessons to fellow students.the internal and external forces are usually talking about buildings for example a rollercoster's internal forces are the seats and their live load is the people.
the external forces would be. Major global players in the offshoring of finance and accounting activities 12 Impact of offshoring on host and home countries 13 academic publications, popular business press and responses to offshoring by governments and industry bodies in Australia and the rest of the world.
(Carey et al, ). The driving forces for. finance. However, internal factors such as marketing, operation and in particular accounting services may be equally responsible to such state of affairs. This study therefore attempts to analyse the importance attached to formal accounting systems among the small to medium-sized Mauritian manufacturing firms operating in six main industry groups.
Accounting is another broad subsector within the financial services industry. In general, accountants record, maintain, and analyze financial accounts for individuals, companies, nonprofit organizations, and government agencies.
External environment factors PESTEL analysis stands for "Political, Economic, Social, and Technological, Environmental and Legal analysis".
It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macroenvironmental factors that the company has to take into consideration. External forces are causing the automotive industry to go through a period of accelerated change.
Though high levels of internal competition drove innovation in the past, new sources of competition have emerged and have increasingly influenced the development and design of vehicles.