Describe Factor

Question

This means to define what the factor is and give an example. Ex. What is a political factor and what is an example of that?

Potential Factors
Using examples in your definition, you can infer potential factors from the “Kid and Carry” scenario.

Political Factors

[you should find 2 factors]

Economic Factors

[you should find 1 factor]

Social Factors

[you should find 2 factors]

Technological Factors

[you should find 2-3 factors]

Answer 1

Political Factors:

1. Government regulations: This refers to laws and regulations imposed by the government that can impact businesses and their operations. For example, in the "Kid and Carry" scenario, a political factor could be strict regulations on child labor that restrict the number of hours minors can work or the types of tasks they can perform.

2. Political stability: This refers to the political environment and stability of a country or region. For example, if there is political unrest or frequent changes in government, it can create uncertainty and affect businesses' ability to operate smoothly. In the scenario, a political factor could be the stability of the government in the country where "Kid and Carry" operates, which can impact the security and efficiency of their supply chain.

Economic Factors:

1. Inflation rate: This refers to the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. In the scenario, an economic factor could be high inflation rates that increase the cost of raw materials and supplies, affecting the profitability of "Kid and Carry."

Social Factors:

1. Changing demographics: This refers to shifts in the characteristics of a population, such as age, gender, income, and education level, which can impact consumer behavior. In the scenario, a social factor could be an aging population, where there is a decline in the number of children, resulting in a reduced demand for "Kid and Carry" products.

2. Cultural values and preferences: This refers to the beliefs, values, customs, and behaviors shared by a society or a specific group within it. In the scenario, a social factor could be a growing trend of environmentally conscious consumers who prioritize sustainable and eco-friendly products, which may influence the marketing and manufacturing decisions of "Kid and Carry."

Technological Factors:

1. Automation and digitization: This refers to the use of technology and machinery to automate various processes, improve efficiency, and reduce labor costs. In the scenario, a technological factor could be the adoption of automation in "Kid and Carry" warehouses, which can lead to increased productivity and faster order processing.

2. Mobile technology: This refers to the use of mobile devices and applications that enable businesses to interact with customers, gather data, and provide convenient services. In the scenario, a technological factor could be the integration of a mobile app by "Kid and Carry," allowing customers to place orders, track deliveries, and provide feedback, enhancing the overall customer experience.

3. E-commerce: This refers to the buying and selling of goods and services over the internet, which has significantly changed the retail landscape. In the scenario, a technological factor could be the growth of e-commerce platforms, which may require "Kid and Carry" to establish an online presence and adapt their distribution strategy to cater to online customers.