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Forces/Element Strengths Weaknesses Opportunities Threat

Inflation Economic Forces Adjustment of wages and Inflation results as


development of country central banks try to reduce
becomes possible. A mild or the money supply by
moderate inflation is good increasing interest rates
for the growth of economy which result in a higher rate
because if there is no rise in of interest on loans and
price of goods or services since the majority of people
then it can lead to deflation and companies takes loans
which presents different set during their lifetime they
of problems for the suffer the most, it also fixed
economy like recession or income groups like salaried
depression for the economy, class people, pensioners,
vicious cycle of lower savers and poor people
consumption and lower because during inflation
production due to falling in their purchasing power is
price of goods and services, being reduced due to fall in
unemployment and so on. the real value of money
Inflation is kept under and makes the country
control can boost the products uncompetitive in
growth of the economy. international markets due
Inflation though indirectly to deprecation in currency
can result in more which leads to falling in
productivity because when exports putting further
inflation rises companies pressure on the economy
tend to increase their foreign exchange. Lastly, it
production so as to earn is a continuous increase in
more money and workers the price level and if not
also work overtime because controlled it can lead to
their real wage has fallen hyperinflation which is the
due to inflation and to worst-case scenario as it
counter inflation they have may result in a complete
to increase their wages breakdown of the economy
which can be done either as well as government
through overtime work or leading to anarchy in the
doing side job after work country.
Tariff Economic Forces Tariff Tariff
- The government - demoralizes foreign
imposes tariffs on imports investors from investing for
so as to protect the local the country
industries from collapsing, it - discourage countries
protects the country from from exporting goods to
selling cheap good. many other countries
- It also plays an - increases the tax on
important role in the goods and services in the
development of the good
economy by creating more - it affects the
employment opportunities, relationship between two
reduction of the deficit and countries since they deny
increase in revenue. the goods to be imported
- creates employment - it might have
opportunities for the negative effects on the
citizens by encouraging the economy with the
growth of local industries to reduction of the
grow to produce more local competition between
goods manufacturers there may
- protects the country lack an adequate supply of
from being a recipient of products and many others
rejected goods and prevents
dumping

Generation Socio-cultural Different Businesses must find


Gap and generations come a way to balance the
Demographic with their own needs, preferences
personalities, and views of
opinions and different age groups
tastes. Time goes resulting in a deeper
by and businesses analysis to their
needs to learn to demographics and
adjust to different identify their
generations differences.
Product Technological - We save our time. - The old technologies and
Innovation Forces - We save money. techniques are left behind,
- In most cases nowadays and it becomes a challenge
environment is benefited. to protect them.
- We get to know more - Many rituals may get lost.
things. - People have to change
- We get more opportunities their lifestyle in order to
to further bring more get compatible with it.
innovative ideas. - People's way of thinking
- In most of the cases, it changes.
brings to us efficient use to
available resources.
Labor Political Legal First, it affects the THe employee's
Strikes growth of the demands are
economy. Striking realized
for short or immediately
extended periods resulting in better
of time, results in working conditions.
the loss of revenue Strikes put to
for a country as prominence the
companies and various concerns of
factories are not workers.
conducting their
usual mandate of
producing
products and it
may results of
boycotting the
products of the
company
Birth Socio-cultural There will be fewer Religious groups who are
Control and pregnancies and it controls against it because of the
Demographic population rate. sanctity of birth
Heavy Socio-cultural Waiting in traffic is Congestion makes people
Traffic and a non-productive late to work, stresses as out
Demographic activity for most before arriving to our
people as it wastes destination, makes
time, energy and deliveries slower, and all
opportunities that those wasted fuels cost us
should instead be money. Therefore, results
applied to in poor health condition of
activities that will the people and also a
benefit the person slower economic growth.
more. Furthermore, government
or traffic departments will
have to provide road or
highway improvements to
mitigate the effect of the
traffic.
Education Socio-cultural It contributes to the More people are
and improvement of a person’s qualified for a high-
demographic skills and productivity to do skilled demand jobs
work. Additionally, it will and people may
help in the advancement of create more
technological and effective processes,
entrepreneural skills to also ideas or products.
benefit the economy.

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