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Social factors: Among the socio-economic factors which have effect on the strategy we can note values and insight of population, customers and employees. These values lead to the style of living which in return strengthens affection for the products and services or relation between agencies or employees. Society affects the company and vice versa. For example a factory shouldn't produce smoke and pollute the environment. So, if the company show respect to society, the society also respects the company. The following rules should be considered: a- Managers believe that they should prefer the benefit of company to their own benefit. b- They believe that their duty toward the society is more essential than their duty toward their own company. c- Managers should expose their benefit when it includes the benefit of company and when the benefit of company contradicts the benefit of society. d- Managers use executive rules to select strategy. When determining strategic goals demand factors should be determined, such as a- Change in population b- Change in the age of population. c- Distribution of income. The changes of population affect on the factors creating opportunities and threats. For example in 1980's there were a great number of the young in some countries and this created opportunities and threats. The young people married and the demand for furniture increased and industries tended to produce facilities for the young and the demand for toys increase. Strategists usually evaluate geographical environment and study it to determine opportunities and threats. Some times these activities include transferring central companies to a new region. This change may be because of change of population or because of the fact that an institute needs people with enough income. Technological factor has a rapid growth after world war two. Technology is an important factor which influences the data and production process. Regarding to changes of technology we should consider the following cases: 22
a- Computer changes. b- Changes in communication and transportation system. c- Changes in energy and its sources. Changes in technology can lead to sudden drop in existing productions and new ways of producing and creating new production facilities so these changes are either creative or destructive. It is an opportunity and also is a threat. Since increasing the rate of technology changer. Causes to shorten the durability of products, it is necessary for organizations to predict these changes. Government sector is one of the important factors in business which affects things like income, price control, equal job opportunities, safety and health, the place of factory, the limit of air pollution and noise pollution, advertisement. The activities of government affect on the strategic selection of job and can increase opportunities and threats. Obeying the rules increases the competition of industries. Changes in the world can provide opportunities to develop markets and also threats for international industries. Appearing European society as a big open market which is a large as half of American market is a threat for American business. They may be a great power and occupy American markets. The job of strategic managers is to analyze competitive forces to recognize threats and opportunities. Porter has offered a pattern called five force patterns, and emphasizes on the five forces which form the competition in industry (31). a- The danger of appearing new competitors. b- The rate of competition between companies. c- The power of bargaining of customers. d- The power of bargaining of distributors. e- Similarity of alternatives for industrial products. Porter believes that the power of each of these forces can increase the power of companies to raise the prices and gaining interest according to Porter a powerful competitive force can be a threat because it decreases the benefit. A week competitive force makes it possible for the company to gain more benefit. These five forces can 23
Page 1 and 2: KHAZAR UNIVERSITY Ministry of Educa
Page 3 and 4: CHAPTER 5. Analysis of research fin
Page 5 and 6: Strategy evaluation can be a comple
Page 7 and 8: There are ways of dealing with thes
Page 9 and 10: Chapter 4 includes structure analys
Page 11 and 12: By careful study of these definitio
Page 13 and 14: 1-1-2. Recognizing of the Subject i
Page 15 and 16: Chapter 2. 1-2- Background of the r
Page 17 and 18: 1-2-3. Objective and its role The f
Page 19 and 20: esist the shift. So there should be
Page 21: f- Production factors. Socio-econom
Page 25 and 26: approaches like common management,
Page 27 and 28: We should pick patterns which can p
Page 29 and 30: Part two Recognizing and analyzing
Page 31 and 32: c. Researcher evaluates the informa
Page 33 and 34: The formal approach to predict a te
Page 35 and 36: Potential competitors: We can predi
Page 37 and 38: In these stages the manager should
Page 39 and 40: In trying to assess the influences
Page 41 and 42: Fashion favors the structure of the
Page 43 and 44: To enable the top managers to maint
Page 45 and 46: configuration, the innovative organ
Page 47 and 48: organizations, usually hardly any a
Page 49 and 50: There are a number of factors which
Page 51 and 52: have strong relationships with thei
Page 53 and 54: industry. This enables us to identi
Page 55 and 56: ones by operating proactively upon
Page 57 and 58: standards are established. Competit
Page 59 and 60: captive clients. Or the product may
Page 61 and 62: competitors? e. In what areas might
Page 63 and 64: coordinate the separate activities?
Page 65 and 66: "professional" organizations like a
Page 67 and 68: processes is either specialization
Page 69 and 70: contingency approach is probably Mi
Page 71 and 72: structural changes are introduced.
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of environmental dynamism and task
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pace of new product introductions i
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coordination across the separated f
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messy, complex and stressful. Routi
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understand and relatively straightf
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The statement needs to be concise,
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Looked at in this light, it is clea
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strategy indicate that the organiza
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these types of questions are affirm
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Lindsay and Rue hypothesized that s
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Determining which objectives are mo
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stated objectives. In his thought-p
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provide timely information; on occa
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Too many organizations discard alte
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In a recent article, Shimell emphas
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Even the most technically perfect s
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Part Three Practical application Ch
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agriculture, development of farmer
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subbranches: plant-growing, plant g
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Additional products are used for fe
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According to this feature, to count
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Meanwhile, to get macroeconomic res
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Plan indicators, statistical counti
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Macroeconomic indicators in the agr
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esults of economic activity of Azer
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Absheron Gazakh Zagatala Lankaran K
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Then purchase (consumer) prices of
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Absheron Ganja-Gazakh Sheki-Zagatal
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Net profit remain at producer’s (
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N v is new generated value, I c is
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It is naturally that in that last t
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Economic researches give opportunit
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The determined legal base serve imp
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information relations between scien
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enumerated in accordance with the d
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At the result of generalization of
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CONCLUSION This chapter presents a
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Bibliography 1. ALDRICH, H.E., Orga
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33. RUMELT, R.P. Strategy, Structur
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