Employment laws: when producing my product I will need to take note of employment laws. There are many employment laws like the safety of employees. I will have to make sure the environment they work in is a safe one. Other employment laws include hours of work and rate of pay. I will need to keep within guidelines to ensure my workers are not over working or been under paid.
Environmental regulations: when making my product I need to think about what effects my product could have on the environment. Also I will need to make it safe for people to use. I will need to use the correct materials when making my product and make sure when producing I don’t pollute the environment.
Economic Factors
Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macro economy.
Interest rates: When my product is on the market I will need to look at interest rates and see how much spending power consumers will have. if there are higher interest rates consumers will not have as much money to spend and this could affect my product.
Inflation rate: when my product is on the market I will need to took at inflation and see what percentage it is at and see what the trend to see if it is going up or down. Having a higher rate of inflation consumers will have lower incomes and the consumers will not have as much spending power. Not having as much spending power my product may not be consumed as much and will affect my total revenue.
Economic growth: when launching a new product it will add to the output of the country. More products are been sold and consumed and will create economic growth, this can be measured by the real GDP (gross domestic product) of the country.
Social factors
Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include.
Health consciousness: When making my product I need to take into account the safety factors of my product and safety laws. If my products are unsafe they could cause a lot of problems and my product could be in risk of been taken of the market.
Population Growth Rate: looking at population growth rate and demand for my product I could meet the demand with the correct supply. I do not want to under or over supply in the market.
Age distribution: looking at the age distribution I can look at my target audience in the different groups and predict how much of my product I need to supply.
Technological factors
The technological factors can lower barriers to entry. Reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
Technology changes, with changes in technology it will have an effect on my product. With changes in technology I could find ways of producing my product at lower costs. Also with technology changes other companies could make my product dated if something new its bought to the market.
