Stability of government policy, constitutional issues and stability f country (no war) are great issues in making business decision. Strategies and investment decision of business organization largely depend on International trade policy, quota and sanction. Every UK business organization must comply law & regulation (e.
G. Company law, tax law, labor law, Foreign direct investment law) set by UK government. Changes in these factors have great impact on operation of UK business organization and this may lead to changes in business strategy.Economic Factors Sale and profit of business depend on disposable income, consumers’ buying rower and spending pattern which can be determined by level of economics development and economic systems (market, centrally planned or mixed). Exchange rates, interest rates and inflation rates are also key factors in to consider in making business decision such as purchase from which country, deciding discount percentage, investment. Profit and loss of a business and growth rate is largely depend on economic factors. Social Factors In marketing perspective Social factors are typically important.Social factors eave to be taken account especially in marketing, segmenting, targeting and positioning.
Quantity of sale is largely depending on population, birth rate, average age, gender, family structure and ethnicity. Changes in these social factors directly impact on sale of business. E. G. In developed country, Life expectancy become increase, as a result, sale of health care products for ageing people increase.
Marketers have to consider values, attitudes, education level, income level and level of demand , in deciding marketing mix.Technological Factors Technological factors develop all aspects of business. New product and service become available because of technological development in production technology and research. Improvement in Information technology and communications systems leads to better handling of information in stock, sale and finance. New media for communication within the business and customer also can be available. (E. G.
Internet) E- commerce and E-marketing increase market opportunities for business. Ecological (Natural Environment)Business organizations’ activities are influenced by weather and natural resources availability. Business organizations also have social responsibilities to protect and maintain natural environment. It become important issue in exploiting natural resources project (e.
G. Petrol, metal exploiting, etc Then. Vise, pressure will come from many aspects, such as green pressure group. Awareness of controlling CA emission, global warming issues is also very important. Lack of knowledge of environmental issue may lead to paying penalties of millions of sterling pound.