Question

List 'Socio-Cultural'. 'Political', 'Technological', 'Legal', 'Economic', and 'Ecological' for store Foot Locker.

few sentences for each.

Answer 1

Political Factors:

In determining the factors that can affect Foot Locker, Inc.'s long-term profitability in a certain nation or market, political variables play a important part. Foot Locker, Inc. operates in more than twelve nations in Textile-Apparel Footwear & Accessories, exposing itself to various kinds of political setting and political system hazards. Achieving achievement across different nations in such a vibrant Textile-Apparel Footwear & Accessories sector is diversifying the systematic hazards of the political setting.

It can analyze the factors:

• Political stability and importance of Textile - Apparel Footwear & Accessories sector in the country's economy.
• Risk of military invasion
• Level of corruption - especially levels of regulation in Consumer Goods sector.
• Bureaucracy and interference in Textile - Apparel Footwear & Accessories industry by government.
• Legal framework for contract enforcement
• Intellectual property protection

Economic Factors:

Macro environmental factors such as inflation rate, savings rate, interest rate, foreign exchange rate and economic cycle determine an economy's aggregate demand and aggregate investment. While the company's competitive benefit is affected by micro-environment variables such as competition standards. Foot Locker, Inc. can use the financial factor of the country such as growth rate, inflation & industry financial indicators such as Textile–Apparel Footwear & Accessories industry growth rate, customer expenditure etc. to predict the growth path of not only the sector but also the organisation sector. It can consider following factors:

• Type of economic system in countries of operation – what type of economic system there is and how stable it is.
• Government intervention in the free market and related Consumer Goods
• Exchange rates & stability of host country currency.
• Efficiency of financial markets – Does Foot Locker, Inc. needs to raise capital in local market?
• Infrastructure quality in Textile - Apparel Footwear & Accessories industry
• Comparative advantages of host country and Consumer Goods sector in the particular country.
• Skill level of workforce in Textile - Apparel Footwear & Accessories industry.
• Education level in the economy

Social Factors:

The culture and manner of doing stuff of the society has an effect on an organization's culture in an setting. Shared population views and attitudes play a major part in how Foot Locker, Inc. marketers will know a specified market's clients and how they will design the marketing message for consumers in the Textile-Apparel Footwear & Accessories sector. Factors:

• Demographics and skill level of the population
• Class structure, hierarchy and power structure in the society.
• Education level as well as education standard in the Foot Locker, Inc. ’s industry
• Culture (gender roles, social conventions etc.)
• Entrepreneurial spirit and broader nature of the society. Some societies encourage entrepreneurship while some don’t.

Technological factors:

Technology is rapidly disrupting the whole range of different sectors. To demonstrate this point, the transport sector is a good case. The sector has transformed very rapidly over the past 5 years, not even offering the established players the opportunity to deal with the changes. Players like Uber and Lyft are now dominating the taxi industry. Car industry is shifting quickly towards automation led by technology company like Google & production is interrupted by Tesla, who has declared a revolution in electronic cars. A company should not only analyze the industry's technology, but also the velocity at which technology disrupts the industry. Factors:​​

• Recent technological developments by Foot Locker, Inc. competitors
• Technology's impact on product offering
• Impact on cost structure in Textile - Apparel Footwear & Accessories industry
• Impact on value chain structure in Consumer Goods sector
• Rate of technological diffusion

Ecological Factors:

Different markets have distinct standards or environmental standards that can affect an organization's profitability in those markets. Even within a nation, countries can often have distinct legislation and responsibility regulations on the environment. For instance, in the event of mishaps or environmental disasters, Texas and Florida have distinct liability provisions. Likewise, many European nations are giving good tax breaks to renewable-sector businesses. Factors:

• Weather
• Climate change
• Laws regulating environment pollution
• Air and water pollution regulations in Textile - Apparel Footwear & Accessories industry
• Recycling
• Waste management in Consumer Goods sector

Legal Factors:

The legal framework and institutions are not solid enough in many nations to safeguard an organization's intellectual property rights. Before entering such markets, a company should closely assess how it can lead to theft of the secret sauce of the organization and thus the general competitive edge. Some of the legal variables to consider when entering a fresh industry are the management of Foot Locker, Inc. are:

• Anti-trust law in Textile - Apparel Footwear & Accessories industry and overall in the country.
• Discrimination law
• Copyright, patents / Intellectual property law
• Consumer protection and e-commerce
• Employment law
• Health and safety law
• Data Protection

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