Changing is so prevalent these days, so each brings significant with it so many obstacles, that it is critical for the organization′s managers and executives to be mindful about environmental changes. Economic, socioeconomic, sociocultural, technological, legal, environmental (natural) and demographic aspects all play a role in the overall environment of a country or region. Changes in the broader environment can have a direct impact on operations, but they also have an impact on the company′s actions. This means the entire of an organization′s financial element is the economic structure in which it operates. The company′s current financial variables include inflation, interest rates, and unemployment. These economic factors constantly have an impact on product demand. During inflation, the corporation pays more for its sources and raises commodities prices to offset the increased costs. When interest rates rise, consumer are less willing to borrow money, and businesses must pay more when borrowing. When unemployment is high, businesses can be picky about who they recruit, but clients′ purchasing power is diminished as more people work.
