MGMT 303 WEEK 2 SWOT Analysis SWOT Analysis Managersâ€™ decisions and actions are constrained. External constraints come from the organizationâ€™s environment and internal constraints come from the organizationâ€™s culture. The term external environment refers to factors and forces outside the organization affecting its performance. 1. The economic component encompasses factors such as interest rates, inflation, changes in disposable income, stock market fluctuations, and business cycle stages. 2. The demographic component is concerned with trends in population characteristics such as age, race, gender, education level, geographic location, income, and family composition. 3. The political/legal component looks at federal, state, and local laws as well as global laws and laws of other countries. It also includes a countryâ€™s political conditions and stability. 4. The sociocultural component is concerned with societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior. 5. The technological component is concerned with scientific or industrial innovations. 6. And the global component encompasses those issues associated with globalization and a world economy
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