Management and Organizational Studies 4410A/B Chapter Notes - Chapter 2: Disposable And Discretionary Income, Niche Market, Bargaining Power

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: John White

Document Summary

Understanding the tool: both tools are used in identifying the key external forces that might affect an organization. Using the tool: gather information about the four factors, identify which of the pest factors represents opportunities or threats. Political factors: e. g. tax policies, trade regulations, entry regulations. Economic factors: measures the health of an economy, e. g. Disposable income of buyers, unemployment rates, interest rates, inflation. Social factors: the mentality of consumers, how will the economy react to change, e. g. innovation, new technology. Environmental factors: companies are rewarded for having positive impact on the environment is a rising concern, government has policies to regulate this, e. g. waste disposal laws, positive attitude towards environment. Legal factors: laws and regulations in the region a company operates, e. g. employee regulations, health and safety regulations, product regulations. Introduction stage: product branding and quality level is established, determine pricing, distribution is selective until customers accept the product, promotion is aimed at innovators and early adopters.