Friday, May 22, 2009


These comprise forces outside the organizations. They consist demographic, political and natural forces. Other includes technological, cultural, economic and legal forces.

Demographic factors

The population of any country as well as its characteristics will normally require firms to produce more while a decrease in population will require organizations to reduce out more level which may, in turn reduce profit. Changes in the characteristics of the given population such as changes in value system, age distribution can also affect businesses

Changes in population may require organizations to restructure their products, improve on its adverts and channels of distribution, abandon certain products and of course establish new ones.

Political factors

Operations in the political environment and actions of politicians can also go a long way affecting the operations of organizations. For example, a change from, military to civilian uniforms and gadgets that are considered not important by civilian governments. In Nigeria, experience had it that civilian administrations embark more on projects that are people oriented, expensive and at times, ambitious. Projects like this will normally include the injection of lots of finance into circulation which in turn, create further economic operations that either exert pressures or provide chance for business enterprises.

Considering this, it is also possible for political leaders to make polices or introduce laws that conditions the activities of organizations. Peradventure the intensification of the privatization and commercialization process by the obasanjo’s administration seems to have triggered off reactions and operations in NITEL, PHCN, NPA and some others.

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