This is a general analysis of the overall condition and state of health of the economy, which then moves on to deal with the specific business area in detail.
Those companies which have equipped themselves with, and have put in place flexible strategies to deal with uncertainty, will be better able to cope with change, thus increasing their competitive advantage.
Possible economic factors that could exert significant influence on the business environment include:
- economic growth
- interest rates and monetary policies
- government spending
- unemployment policy
- exchange rates
- inflation rates
- stage of the business cycle
- consumer confidence.