Impact of external factors

The population of the world is going to an upward direction, which was 7 billion up to 2010 and is expected to reach 8 billion in 2018 and 9 billion up to 2054. Which would change the trends of living standards because of social, demographic, cultural, and environmental changes?

Introduction:

As, the population of the world is going to the upward direction, which was 7 billion up to 2010 and is expected to reach 8 billion in 2028 and 9 billion up to 2054. Which would change the trends of living standards' because of social, demographic, cultural, and environmental changes, the said changes may require adjusting the drastic change in the demand of the customers, and consequently he/she demanded different products, alter services and modifications in strategies?

It affected the organization's strategic orientation because of the aging factor in the United States population. It increased the elder's complex apartments, along with onetime meals, utility bills, the transportation expenses for a day in the entire country. These life care facilities complexes increased up to 2 million, as these facilities had built by well-known companies included AVON, Hyatt, and Marriott. 13% of the population in the United States having 65 plus years of age, while these are 17% in Japan and 19% in Germany.

The people of the United States were shifting to the South and Western side away from the Northeast and Midwest but the recession and housing bust has slowdown the migration nationwide, that's why so many Americans have stayed at their native land rather than movement. The primary reason of the masses movement was the availabilities of jobs in across state lines because the 3 million jobs in the united states in 2008 to 2009 was demolished, so it causes to reduce the said movement of American towards the said regions.

The price rates of the house have fallen, which also contributes to reducing the masses movement drastically. The data collection process of these hard number's information represented the key opportunities for the great number of organizations, which is essential for strategy formulation' for further plantation and distribution centers to focus the marketing struggles in the US.

Politics, Governments, and Legal Forces

The major regulators, deregulators, employers, subsidizers are the customer's large organizations of Federal, state, local and foreign Governments, which can represent the key opportunities or threats of many organizations including small organizations and large organizations.

The industries and organizations highly depend on Govt contracts or getting subsidies, so politically, the most important part of an external audit can be forecasted.

The activities can significantly affect the organizations by modifications in-country laws, taxation rates, lobbying, and antitrust legislation.

The global increase interdependence among the economies, governments, organizations, and markets, should take into consideration the political variable that affected the formulation and implementation of the competitive strategies.

In the great perspective of the international markets, the large economies are adapting to the protectionism by taking the solid steps toward the hard constitutional amendments to stop the imports from foreign countries and also provide relaxation with subsidization to their specific items for exports. Russia and India had taken the solid step towards this protectionism notion. As India has started the foremost duties on import of steel and the European countries imposed sanctions over the import of chicken and beef from the United States. Russia had started the notion of subsidies for their imports and foremost rank duties on imports, which is the protectionism steps, Russia has started that, because they had imposed the extra toll tax on trucks, importing from European countries Turkmenistan and Switzerland.

The American had refrained enormously from " Buy US" Policies and also take the protectionism measures. They increase the tariffs on Italian water and French cheese. The expert economists are in the opinion that the recent rash of trade hurdles will cause the low global economic growth on account of recovery from the global recession. It expected the world trade 2.1% decrease in 2009 with a comparison of 6.2% in 2008. The Russian claimed that the protective tariffs allow the Russian companies to survive against the said recession.

Unfortunately, the increasing number of companies is also viewed as an increasing number of countries to adopt these strategies.

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Conclusion: 

I conclude that,

1. The political, economic, governmental organizations should take in integration for the policy formulation of an organization.

Muhammad Israr Umar

An NGO worker for the last 17 years

Muhammadisrarumar6@gmail.c