Richard Fry, Millennials Overtake Baby Boomers as Americas Largest Generation, Pew Research Center. Technology poses new challenges for this economic convergence. consent of Rice University. People of all ages have a broader range of interests, defying traditional consumer profiles. Productivity is the amount of goods and services one worker can produce. There is a constant technological development-taking place. The application of technology can stimulate growth under capitalism or any other economic system. Why do demographic shifts and technological developments create both challenges and new opportunities for business? The population is becoming increasingly diverse: currently minorities represent more than 38 percent of the total U.S. population, and that number will continue to increase over the next several decades. 5. For example, a multinational company such as General Electric will evaluate the political climate of a country before deciding to locate a plant there. When a firm is considering entry into new markets, these factors are of considerable importance. This event, which played out for more than 87 days, severely affected the environment, businesses, tourism, and peoples livelihoods. /Subtype /Form [6] Other age groups, such as Generation Xpeople born between 1965 and 1980and the baby boomersborn between 1946 and 1964have their own spending patterns. Demographic factors are an uncontrollable factor in the business environment and extremely important to managers. Global oil conglomerate BP, which was responsible for the oil spill, has spent more than $60 billion in response to the disaster and cleanup. North Africa was once on the geopolitical periphery of Middle East dynamics, but it has increasingly come to shape regional trends. Broad Factors Analysis, commonly called the PEST Analysis, is a key component of external analysis. Analyzing more than 10 million company reviews by employees, Indeed researchers identified the top 20 firms with the best work-life balance. Marital status Demographic factors are an uncontrollable factor in the business environment and extremely important to managers. With the new technologies favoring capital, winner-take-all business outcomes, and higher-level skills, the distribution of both capital and labor income has tended to become more unequal, and income has been shifting from labor to capital. Federal agencies play a significant role in business operations. The framework identifies groupings of factors that firms should be paying attention to the political, economic, social, technological, ecological, and legal factors. They choose the supplies they purchase, which employees they hire, the products they sell, and where they sell those products. Income 7. Mobile technology allows businesses to communicate with employees, customers, suppliers, and others at the swipe of a tablet or smartphone screen. Importing can take many formsfrom the sourcing of components, machinery, and raw materials to the purchase of finished goods for domestic resale and the outsourcing of production or services to nondomestic providers. Governments, however, can also play a critical role in globalization by determining and regulating technological standards. In addition, the forces of supply and demand determine how prices and quantities of goods and services behave in a free market. Technological factors may influence how society interests.