External Environment (Mega or General Environment)

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">&NewLine;Legal-political element refers to the legal and governmental systems within which an organization must function&period; There are various federal&comma; state&comma; and local government regulations which can significantly influence the overall performance of an organization&period; For example civil Rights Act of 1991&comma; Americans with Disabilities Act of 1990 etc are some of the US legislations affecting the businesses of different organizations&period; Similarly political stability and positive attitude of elected government official towards the business of an organization is very important for the organization’s progress and prosperity&period; <&sol;p>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p> <strong>•&&num;160&semi;&&num;160&semi;&&num;160&semi; Socio-Cultural Element<&sol;strong><&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Socio-cultural element includes customs&comma; norms&comma; behaviors&comma; societal values&comma; beliefs etc&period; Socio-cultural aspects are subject to change therefore managers must adapt their practices to the changing expectations of the society&period; It is necessary to monitor the prevailing trend from time to time because such changes might offer new opportunities or pose significant threats&period; For example if there is shift in behavior of people for certain product&comma; the demand of the product will increase along with increase in price&period; <&sol;p>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p> <strong>•&&num;160&semi;&&num;160&semi;&&num;160&semi; International Element<&sol;strong><&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p align&equals;"justify">&NewLine;The political&comma; social&comma; cultural&comma; and economic situations of one country are significantly different from other country&period; Therefore development in a country outside an organization’s home country has great influence on the success of organization&period; For example a slight increase in the value of dollar has great influence on the ability of an organization to conduct business abroad&period;&&num;160&semi; Therefore those organizations which are purchasing raw materials from USA will find it difficult to purchase from them because of increase in the cost of production due to higher prices&period; Conversely&comma; if the dollar falls against foreign currencies&comma; demand for the raw materials will increase&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;