The aggregate demand and supply in an economy are determined by various economic factors. Honeywell can use various economic factors of a country to determine its profitability in that particular country. Some of the economic factors that can be considered are listed below.
- An economic system in countries
- Intervention by the government in the market
- Exchange rates
- Inflation, interest rates
- Business cycle stage i.e. recession, prosperity or recovery
- Rate of unemployment
As for the organization, charity and other processes are being done and with a more than 90 country operations average, the economic risks and factors are great which may affect the profitability of the organization.
The culture of a country can also influence the culture of an organization. The beliefs and values of a society play a role in a company’s marketing strategy. The social factors that should be assessed as they can make an impact on the company are listed below.
- Skillset and education level
- The attitude of people towards environment and health
Health and other factors may affect the organization, but socially the organization is stable with presence in the market.
As we can see that technology is disrupting almost all of the sectors. Thus, conducting a technological analysis, it is also important to consider the pace at which technology is disrupting the respective industry, as if it is disrupting at a quick pace then it implies that the companies operating in that sector have less time to adjust and are exposed to more risk. Other technological factors that Honeywell should consider are listed below.
- Recent technological developments
- Impact on the cost structure
- Technological diffusion
Technology is getting advance everyday with old equipment being redundant quickly and being replaced, this is a factor for the organization as it produces control system for AC units in buildings. This basically suggests that the organization should account for more depreciation on the products and enhancement of continuous technology with a budget for research is necessary.
The environmental standards of a country vary and this can impact the profitability of any company operating there. The environmental standards not only differ country wise but in many countries, different states have a different set of standards, which the companies are obliged to meet. Some of the environmental factors are listed below.
- Laws and regulations regarding the environment
- Rules regarding pollution
- Waste management
The legal framework also varies country wise. The legal factors that can affect a company’s financial position in the market are listed below.
- Anti-trust laws in the industry sector
- Laws regarding patents, property rights, and copyrights
- Data protection laws
Buying Power of Buyers (Moderate)
The bargaining power of the customers is moderate, as first of all the customers can alter the bargaining as per their needs, but on the other hand, there are a large number of customers in the market and the no. of direct competitors is also low……………….
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