SAP is a global software company that is always keen to develop new software solutions and to bring some innovation in the field of IT. The company has been expanded to different regions with a lot of units working in more than 130 countries. The headquarters of the company is in Germany and there are regional offices in the related regions. It was formed in 1972 and now has maintained its influence in the domain across the world. There are certain influential factors that have affected the company covertly or overtly. These factors are as follows.
The political factors include the rules and policies of the government in which the companies like SAP have been working. As the manufacturing company is in Germany so mostly the governmental policies of Japan affect the company very much. Apart from this the several import policies of the regions play a vital role in the success of the SAP. With the advent of globalization, the political factors have a positive role in the business industry like SAP. SAP has already recruited employees from across the globe so it will be right to say that amalgamation of different cultures has created such a political environment within the company that is affecting the company. These inter-political factors and the external political factors have its possible opportunities as well as possible threats to the company.
The economic factors include the Exchange rates of the state in which the company is working. The recession element is also one of the mainstream elements in the upbringing of the dynamic organizations like SAP. Apart from these attributes pertaining to the economic factors the Price which the individuals or the clients of a state in the state are ready to pay for the technological reforms also affect the business of Sony. This varies in different regions. For instance, in few regions, the people are very much prone to technological advancements and so are always ready to pay for it.
Moreover, The GDP of the state is the main factor contributing the business of the technical companies like SAP. The developed states with high Human Development Index and a good economy will be more prone to the business like SAP Company is offering. The people of such states will be more interested in adapting technical solutions, so there will be more chances of the adaptation of innovation that SAP brings and will positively affect the business as a whole across the globe.
The social factors encompass the technical trends in the society. Certainly, the modern societies are more interested in the business companies like SAP. The society who has a sense of latest technology and are always eager to adopt the contemporary technical trends will always welcome the innovations by the brands like SAP. There are certainly ethical issues as well for instance the way the company has adopted and introduced the technical solution and the types of equipment the company has used, some states or the people of society will consider it as holy sin to become prone to technology. All these social and ethical pressures and trends play a prominent role in the business of SAP.
Technology has its ramifications in every sphere of life. SAP being purely technology oriented company, so technological factors is always the major ingredient of the company. For the companies like SAP, the technological attributes like innovation have played a great and significant role. SAP is very much prone to innovation and has always followed the contemporary trends. The technology gives it possible to spread the innovation within seconds and to give technological solutions to the companies and the clients.
SAP has been one of the leading international companies. It is always best to understand the external as well as the internal factors that affect the company as a whole. There have been many competitors to SAP. For the company like SAP in order to maintain the graph of success, it is incumbent to fulfill all the legalities of the region in which it is working. The world has now become a global village and people have become very much vigilant about the legal aspects of the products. This factor is therefore very important when it comes to the global technological companies like SAP.
The environmental factors encompass various global environment safety laws that must abide by the global standards. The World has now taken the vow in making the planet a beautiful and pollution free. In this perspective, all the international brands are playing their role in showing the support to the world. So SAP can also play its part by supporting such campaigns and following the norms of the world.
The aforementioned factors are the crux of the analysis done for the company and its future. Therefore, it is always a good strategy to consider these factors while determining the policies for the company. In the same way, the future policies of the company should also be made as per the contemporary trends.