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3.4 GENERAL ENVIRONMENT, Economic health affects purchasing power,…
3.4 GENERAL ENVIRONMENT
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SOCIOCULTURAL
Norms, customs and values influence people’s behavior
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Demographic characteristics include age, education and population distribution
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NATURAL
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Definition
Naturally occurring elements (plants, animals, climate, resources).
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INTERNATIONAL
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The World Is Flat (Thomas Friedman): Geographic divisions are irrelevant; managers must build global markets and supply chains.
The Global Influx:
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Provides new competitors.
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Example: EU's strict GDPR forces global tech giants to comply with data rules, ensuring cross-border privacy and user data protection.
Economic health affects purchasing power, unemployment, and interest rates, creating uncertainty for managers.