In: Finance
Case: Polaris industries inc
Studying Polaris Industries inc provide a complete environmental analysis on the firm
Environmental analysis:
1. Demographics
2. ECONOMIC Environment
3. Political Environment
4. Social/CULTURAL Environment
5. Legal Environment
6. Competitive Environment
1)Demographic analysis can cover whole societies or groups defined by criteria such as education, nationality, religion, and ethnicity. Educational institutions usually treat demography as a field of sociology, though there are a number of independent demography departments.
Formal demography limits its object of study to the measurement of population processes, while the broader field of social demographyor population studies also analyses the relationships between economic, social, cultural, and biological processes influencing a population.
2)The term economic environment refers to all the external economic factors that influence buying habits of consumers and businesses and therefore affect the performance of a company. These factors are often beyond a company’s control, and may be either large-scale (macro) or small-scale (micro).
Macro factors include:
Micro factors include:
While companies often can’t control their economic environment, they can evaluate economic conditions before choosing to enter a particular market or industry or pursue other strategies.
3)Government actions which affects the operations of a company or business. These actions may be on local, regional, national or international level. Business owners and managers pay close attention to the political environment to gauge how government actions will affect their compainteract.The social environment, social
context, sociocultural context or milieu refers to the immediate physical and social setting in which people live or in which something happens or develops. It includes the culture that the individual was educated or lives in, and the people and institutions with whom they interact.
5) Legal system of a country is framed by the government. The laws which are passed by the government for business operation is called legal environment. In every country, the government regulates business activities. These regulations of government are considered as legal environment.
6)A competitive environment is the dynamic external system in which a business competes and functions. The more sellers of a similar product or service, the more competitive the
environment in which you compete. Look at fast food
restaurants - there are so many to choose from; the
competition is high.