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Fresno, California, Peste Analysis: Only the Social part - Research Paper Example

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When businesses are analyzing the macro-environment, they should give priority various factors that affect demand and supply levels of an organization. The various changes that take place every day in the business environment makes the environment uncertain, and thus affecting…
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Fresno, California, Peste Analysis: Only the Social part
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Download file to see previous pages Environmental and legal factors make it a PESTEL analysis. The analysis examines the role of these functions to business into details. The results of the analysis are beneficial to businesses since they use it to make contingency plans during preparation of strategic and business plans.
The social cultural environment expresses tastes and demand, which varies with disposable income, fashion, and other general changes. This environment provides both threats and opportunities to companies. Demand is the principal factor that determines the entrepreneurs’ willingness to invest by creating new businesses in an area. In Fresno, the many businesses established may lead to low demand, and make entrepreneurs think that the profit turnover is low. This acts as a discouragement to potential investors in the area (Gondek, 2011, p. 29). Where the cost of capital is low, entrepreneurs will have the intention to invest. Fresno is experiencing economic growth, and this leads to growth in demand of goods and services thus facilitating new investments in businesses.
Consumer tastes are extremely beneficial as they directly affect the level of demand in the market. When customers want a certain commodity, they do not put much emphasis and consideration on the price of the commodity. This gives chance to businesses to realize a profit by charging a higher price since the customers must buy the commodity due to circumstances like fashion or interest. Cultural aspects, the growth rate of the population, consciousness to health, career attitudes, and age distribution are critical factors that constitute the social environment (Allen, 1999, p. 49). The prevailing trends in these factors will affect the operation of the company.
Businesses in Fresno have made changes in the management strategies adapt the social trends. Fresno is an area that entrepreneurs can invest in since it is experiencing and ...Download file to see next pagesRead More
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