Dimension

Main elements

Business implication

Economic

Interest rates, income, inflation, exchange rates, saving, investment, economic policies and structure.

Affects demand, costs and availability of finance.

Social

Values, traditions, lifestyles, education, demographics and social expectations.

Changes the products people want and acceptable business behaviour.

Technological

Scientific developments, new processes, digital tools and innovations.

Creates opportunities while making old products or methods obsolete.

Political

Political stability, attitudes of government and political institutions.

Influences confidence, policy continuity and investment.

Legal

Laws, regulations and judicial decisions governing business.

Requires compliance in areas such as consumer protection, competition and labour.