ARBUS302 Lecture Notes - Lecture 3: Market Environment, Social Forces, Technological Change
16 Dec 2019
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Document Summary
Environmental scanning is the process of continually acquiring information on events occurring outside the organization to identify potential trends. There are five forces that produce the environmental trends: social, economic, technological, competitive, regulatory. The following figure shows these five forces and how they interact with the organization, its suppliers, and customers. Environmental scanning helps us not only identify the potential trends but also determine why these trends are occurring. The key to successful scanning includes: identifying trends: understanding the reasons behind the trends, and taking action to respond to such trends. Social forces include the demographic characteristics of the population and its values. Demographics is the study of the characteristics of a human population such as population size, population growth rate, gender distribution, marital status, ethnicity, income distribution, etc. Population size is in our interest because it shows the potential size of the market. The world population has been growing at faster rates in certain countries.
