The Economist offers authoritative insight and opinion on international news, politics, business, finance, science, technology and the connections between them. Entrepreneurship tends to focus on identifying and fulfilling consumer needs in specific niche markets, but all businesses can be affected by large-scale economic trends. Economic Factors Affecting Businesses. Weather & Inventory. In economy, the biggest threat for Nike would be economic recession. Nike’s growth adversely affected during the economic recession.
Social and cultural factors affecting business include belief systems and practices, customs, traditions and behaviours of all people in given country, fashion trends and market activities influencing actions and decisions. BUSINESS ENVIRONMENT IN CHINA: ECONOMIC, POLITICAL, AND CULTURAL FACTORS .
These factors include the economic, technological, demographic, sociocultural, global and legal environment at the time and in the future. Adidas AG---Adidas have currently branched out into customization of footwear products; it is important that Nike are aware of this so Nike can sustain its competitive advantage over them.Adidas’s revenue- $18,580.2 million in financial year end of 2011 fy2011 whereas Nikes revenue= $24,128 million (last financial data given on Marketline). The Major Economic Factors Affecting Business Drastically. For example, a fashion designer that creates bell bottom, striped pants will not succeed in an environment where straight-leg, solid colored pants are desired. China is an emerging economy that offers lot of market opportunities for foreign investment. Both international and domestic businesses are often affected by the dynamic economic conditions prevalent in the market. Social factors that affect the economic environment of a business are the cultural influences of the time. Because of the recession, Nike’s feeling pressure. Nike, Inc. needs to devise a plan how it can tackle another global economic recession. Accounting for trends in the overall economy can help business managers make better decisions. Being a market leader, Nike, Inc. can be affected significantly as it experienced in the last decade (2008-09). Nike PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Workers at Chang Shin Nike shoe factory in Bien Hoa, Dong Nai, Vietnam. Here are four factors — good and bad — that could impact shoe companies this year. ABSTRACT . PESTLE Analysis of Nike analyses the brand on its business tactics. The US economy is experiencing a downturn right now.