The task is determining how expected future changes in social, economic, political and legal spheres impacts the strategies of an organization. During a boom, a society with building agenda benefits a lot since more people can be employed and there is money to expand the economy. The competition will also be widespread causing a reduction in the price of goods and services. In case of a recession in an economy, individuals in a building society will have less income to invest and expand the economy, and there will be a lower demand and supply of commodities. The recession hurts development causes, and an organization becomes reluctant to produce fearing losses that are looming. During a trough period in an economy, the economic indexes such as Gross National Product (GDP) will imply a bad performance of the economy. The individuals in a building society will experience massive retrenchment and workers expected to work for longer hours when the economy is in a trough phase. Most companies work very hard to breakeven and stay afloat until the economic situation improves, and they are able to make profits.
At the recovery stage, Nike will increase its production levels and could even employ more workers. Nike at this stage will slowly increase its marketing efforts to attract more customers and better its performance in the fragile economy. During the recession the, some of its employees would be fired and the production levels massively reduced. However, in an economic boom, Nike would increase employees and start making plans for expanding its production capacity. However in the event that the taxes are increased by the tax man, then Nikes business expansion strategies will be halted as its profits would reduce since it will lead to increased prices of products making the commodities unattractive. This political factor could make it unfavorable for investors to buy Nikes shares. Nike would thus lose profits and decides to cut jobs to save their money. Operations of Nike can be impacted by a legal factor such as employees suing the company for unsafe conditions at work or mistreatment. This will go a long way to hurt the reputation of Nike and thereby making customers to avoid buying Nike products. The effect is that losses will be incurred, and customers will be lost to other brands with a good reputation. Social factors can also impact heavily on a companys strategy. If Nike avoids interaction with its consumers in the social media forums, then it will lose a large pool of customers who purchase goods online and are enticed by the online reviews of products.
In conclusion, all these factors are very important to be addressed comprehensively for a company to lure and gain the trust of its customers. Customer loyalty is the cornerstone of the successful organization Therefore, an organization should adequately and timely address social, economic, political and legal factors that influence and affect their customers. A building society should be wise to consider opening branches in regions where the economic climate is favorable, and the product or service they produce will perform competitively in their target market. In doing this, the society would have reduced the perils of operating in an economy experiencing recession and therefore it would attract investors in their new branch who will provide enough income to expand even its production and market capacity.
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