The significance of the political factors is of a high importance to the organization. Business units look for the infrastructure which the government provides in order to facilitate their line of operation. The government policies do affect the business in a direct way. During the scanning of political factors, issues relating to the politics of different areas are all covered. The areas include the organizational, regional, national and international aspects. The political factors within the organization include the changes relating to the ownership of the organization in the form of amalgamation, merger, acquisition and de-merger. Change in the position of key management personnel is also notice. Another important area which comes under the political factor is the effect which organizations have to face due to change in the government both in the regional and national level. Multinational companies also have to take a close look on the official policy which a government offers towards other countries.
The economic factors relate to the elements which affect the financial position of the organization. The economic factors closely deal with the monetary and the fiscal policy of the government. It is quite obvious that the economic downturns relating to recession or inflation also do affect the organizations. The strength of the national economy is quite a major factor which organizations do consider. ...Show more