(Solved Homework): How do the three unique and uncontrollable variables in a global environmental…

The Economic Conditions

A business can influence some economic factors of a global marketing plan by borrowing money as a loan or taking money from investors. But the overall economic environment of the country is something that is out of the company’s control. A marketing plan takes into account economic projections that can affect the way that customers spend money, if fiscal budgets tighten the taxes, then spending power decreases and the marketing plan might fall flat.

Again other event like collapse in economy leading to sudden drop in the stock market or an oil spill can cripples the economy of a large portion of the country can be devastating to a marketing plan.

Legislation and Political Policies

State and National law modifications can cause major challenges for execution of marketing plans. For example, if your company was able to offer price discounts to military veterans because it was a tax deduction for the company, but the Internal Revenue Service takes away the deduction, that will change that program and affect how your company is marketed to that particular audience.

Several tax benefits given by the laws or political regime can either augment or be detrimental in the sales through eating away profits indirectly.

Natural Disasters

Many small businesses have contingency plans in case of an emergency, but a broad-reaching natural disaster could affect your marketing plans significantly. If a hurricane destroyed the major distribution center of your primary supplier, for example, your ability to get product may be impaired for a significant amount of time. If you sell electronic equipment, an earthquake in a foreign country that supplies some of the important components of your products could cause an unexpected rise in price.

Suppliers

You can project product needs in your marketing plan to try and develop a sufficient production schedule to meet demand. But if your suppliers raise their prices or run out of the materials you need, that can significantly affect your ability to bring enough product to market. If you rely on a supplier that suddenly goes out of business, then that would slow your production schedule and affect your actual sales performance versus marketing projections.

(Source: Chron)