1. The General Environment
Segments of the general environment include:
Political/Legal
Economic
Sociocultural/Demographic
Technological
(Some include International)
General Environment
4-1

2. The General Environment
General environmental trends and events:
Little ability to predict them
Even less ability to control them
Can vary across industries
General Environment
4-2

3. Political/Legal Segment
Tort reform
Americans with Disabilities Act (ADA)
Health care legislation & reform
Deregulation of utility and other industries
Increases in federally mandated minimum wages
Taxation at local, state, federal levels
Legislation on corporate governance reforms (Sarbanes-Oxley Act)
4-3

4. Economic Segment Interest rates Unemployment Consumer Price index
Trends in GDP
Changes in stock market valuations
4-4

5. Sociocultural/Demographic Segment
More women in the workforce/More single-family homes/Postponement
of family formation
Greater concern for fitness & environment
Greater disparities in income levels
Increased aging population
Greater ethnic diversity
4-5

6. Demographic Segment Aging population Rising affluence
Changes in ethnic composition
Geographic distribution of population
Greater disparities in income levels
4-6

7. Technological Segment
Genetic engineering
Emergence of Internet technology
Computer-aided design/computer-aided manufacturing systems (CAD/CAM)
Research in synthetic and exotic materials
Pollution/global warming
Miniaturization of computing technologies
Wireless communication
Nanotechnology
4-7