Social
Social factors are general environment that represents the demographic characteristics, norms, customs and values of the population within which the organization operates (B2U – Business-to-you.com, 2019). Infant milk industry, the targeted audience would be babies, however some parents prefer to breastfeed their child.
Technological
Technological factors are revolution in technology that may affect the operations of the industry and the market favourably or unfavourably. It also affects the decision of the company whether to enter certain industries or to launch a product (B2U – Business-to-you.com, 2019). Factors that affects the operations could be one of the few followings impact on cost production, impact on product offer and technological development. If all the technology implemented by A2 Milk benefits the company, other competitors will try to copy their ideas. All the mentioned factors are all interconnected in technology because if the innovation is popular and it affects competitors revenue, others wills try to copy the idea. These are factors that needs to be monitored at all times, causing it to be a threat. However, with technology, it will still help to generate great profit to the company and the earning can be used for research and development to enhance their profitability.
Environment
Environment factors has surfaced due to increasing scarcity of raw materials, pollution targets and carbon footprint targets set by governments (B2U – Business-to-you.com, 2019). In the milk industry, it is heavily dependent on the health and availability of livestock. There are several factors that could affect the livestock, such as diseases or climate change. Diseases will have impact on the cows and this will cause a decline in quality of the milk and supply if cows are being slaughtered. In addition, climate change will affect the quality of the milk cause manufacture needs to find ways to preserve the milk under the weather conditions without the milk turning bad. Also, climate will cause the production and delivery to delay.
Legal
Legal Factor may often be overlap with political, however it involves more specifics laws such as health and safety law or consumer protection law. Organizations should know what is legal and what is not in order to run businesses ethically (B2U – Business-to-you.com, 2019). Health and safety law is needed so that the company will hold responsibility for the workers. It is the company’s respon
