Prepared by:

Akanksha Suri– 1920982505

Ankita –1920982508
Cherry- 1920982522
Gurpreet Kaur-1920984003
• Broader view of the macro environment for a company.
• Keeping a track of changes in environment.
• Easy decision-making process and urges proactive actions.
This includes factors that determine the
extent and the impact of the government on the economy
of a country. Some factors to consider are as follows:

•Political stability in the country

•Political ideologies of the government
•Taxation policies
•Regulatory practices and governing bodies
•Term of the government and any expected changes in the
future
•Influential political leaders and their ideas
• As a company that produces and sells physical goods, Nike is,
however, always subject to changes in tax and manufacturing
laws.
• U.S government policies helped Nike to advance it products.
Policies like low-interest rate and favorable international tax
agreements provide strong foundations for Nike growth.
• The Trump administration is imposing import tariffs and
restrictions. US tariffs on Chinese goods is a huge area of
concern for Adidas and other athletic apparel industries with
respect to increase in products prices.
• Germany is a major exporter and US import restriction and
tariffs can cost Germany up to 20 billion Euros
 These factors have a huge influence on the
firm and its success. And some of the factors to consider when
monitoring the economic environment are as follows:
• Economic situation
• Current phase of the Trade Cycle (Expansion, Depression, etc)
• Inflation rates
• Unemployment Rates
• Current Interest Rates prevailing in the economy
• Consumer Spending potential
• Electric cars - In 2018 the electric vehicle market was $39.8
billion which is expected to reach $1.5 trillion by 2025. This
economic factor is a great opportunity for Tesla to capitalize.
• Decreasing battery costs - Battery is an important cost factor
in the total cost of any electric vehicle. Tesla’s Power wall
batteries development is a great opportunity for the company.
They are making it more affordable and accessible. This factor
will help the company to produce more affordable EV.
• Its primary business expansion opportunity lies in developing
countries. So, only the upper economic layer of developing
countries can actually afford Starbucks’ products. As a result, the
primary profit of Starbucks is still achieved from its home market.
• Another economic factor is the various cheaper alternatives that
create a highly competitive market for Starbucks. And due to low
wage levels many people actively take to the competitors as they
can still buy the generic products but for lower prices.
 Everything that goes on in a society
greatly affects the business. Therefore, it is important to analyze
these factors while studying the social environment too. These
are as follows:
• Demographics of the market
• Consumer Buying Patterns
• Religious and Cultural factors
• State and influence of the media
• Lifestyle trends in place at the time
• The idea of an electric car is fascinating for most people and this is
especially true for those who are more eco- friendly . An electric
car eliminates the use of fuel which is better for the environment
also.
• Moreover , electric cars are also less expensive than those of
traditional cars in terms of maintenance and running cost. Tesla
automobiles are environmentally sustainable.
• The biggest social factor that affect Coca Cola is the mentality
change in its consumers. The millennial and Gen-X Consumers are
readily shifting to energy drinks instead of carbonated drinks due
to the health concerns that the latter brings.
• Diseases such as obesity are associated with the long-term
consumption of Coca Cola and these factors are being brought to
light in recent times. The mindset of the general population has
turned towards healthy living, and in such a state Coca Cola is not a
beneficial product.
 The changes in the technological
environment can be either an opportunity or a threat to the
firm. Hence, some factors to look for are:
• New production technology
• Manufacturing technology (increase in output, lowering of
production cost, etc.)
• New innovations
• Intellectual Property, Patents, etc.
• Maturity of technology
• It has tied up with Apple to introduce app based discounts which is
quite useful to the large Apple user community.
• Another great move by Starbucks was to introduce free Wi-Fi in its
outlets. This has attracted a lot of new customers and also allowed
customers to sit in the cafes for longer times and order more
beverages.
• Mobile based online payment methods have been enabled by
Starbucks to help ease the payment process for customers.
• There are many competitors who are providing advance
technological products of high value at affordable prices which
negatively affected brand image and financial performance of
Apple.
• For example companies like Lenovo maintained its position in the
PC market while Apple lost it. It is because of these competitors
who are providing technologically advanced products at low prices
 These factors affect industries and their
ability to function smoothly. So, some such factors are:
• Environmental Issues
• Energy/Power Consumption
• Insurance Policies
• Safe Waste Disposal
• Dealing with hazardous material
• Environmental factors are the key opportunities for Tesla since the
cars are environment friendly and use electricity. Tesla Inc. vehicles
are also in compliance with several environmental regulations and
barely have an impact over carbon emissions in comparison to that
of traditional cars.
• From electronic vehicles to that of other energy-saving Tesla
has maintained its focus on sustainability as well as saving
energy
• Starbucks uses single use paper cups to serve its beverages which
led to criticism from environmental activist groups.
• No compliance with environmental friendly regulations led to loss
of customer base
• Starbucks needs to be aware about is the conditions of the
countries where its coffee beans are produced. These countries
often face environmental calamities which need to be countered in
order to ensure the quality of the coffee beans being produced.
 This refers to the laws made by the
government that the company has to follow in order to
continue their operations:
• Business Laws
• Environment Laws and guides
• Health and safety guidelines
• International Trade Agreements and Treaties
• Regional/Local Laws and Circulars
• Two Tesla crashes occurred in the 2019 and the National Highway
Traffic Safety Administration and Transportation safety Board are
investing the main causes of these crashes.
• Many States temporarily blocked the Tesla Sales directly from
manufacturer to consumer.
• This legal requirement can affect the Tesla car delivery. Furthermore
having a dealership means more expense and less profitability.
• There are other legal issues like patent rights and energy
consumption regulation. Tesla have to comply with law and
regulations to smoothly run the business activities.
• All organization need to identify external factors within
their environment that could have an impact on their
operations.
• Many of these will be things that the organization has
no control over, but the implications of which need to
be understood.