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SPEET Forces

The document discusses the SPEET forces that shape the business environment: Social, Political, Economic, Ecological, and Technological. It explains that the social environment includes demographics and culture that influence behavior. The political environment comprises laws and regulations. The economic environment is driven by supply and demand. The ecological environment consists of natural resources and ecosystems. The technological environment can make or break competitors through new discoveries. It also lists three important return calculations: return on sales, return on assets, and return on equity.

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Zia Zobel
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577 views1 page

SPEET Forces

The document discusses the SPEET forces that shape the business environment: Social, Political, Economic, Ecological, and Technological. It explains that the social environment includes demographics and culture that influence behavior. The political environment comprises laws and regulations. The economic environment is driven by supply and demand. The ecological environment consists of natural resources and ecosystems. The technological environment can make or break competitors through new discoveries. It also lists three important return calculations: return on sales, return on assets, and return on equity.

Uploaded by

Zia Zobel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SPEET Forces

Social environment includes the demographics and cultural dimensions that govern the relevant
entrepreneurial behavior. The structure, social status, and dynamics of the population at large, as well
as the people’s beliefs, tastes, mores, customs, and traditions dictate the major parameters of market
behavior.

Political environment defines the governance system of the country or the local area of business. It
includes all the laws, rules, and regulations on allowable and disallowable business practices.

Economic environment is mainly driven by supply and demand forces. It is the same factor that drives
the interest and foreign exchange rates to fluctuate with the movement of the market forces.

Ecological environment includes all natural resources and the ecosystem that defines the habitat of man,
animals, plants, and minerals.

Technological environment makes or breaks competing participants in any industry. New scientific and
technological discoveries often lead to the launch and commercialization of new products with superior
attributes or to rendering the old ones obsolete.

Important Return Calculations

1. expected return on sales

2. expected return on assets or investments

3. expected return on stockholders’ equity

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