Larger changes in the demography of a location can have a tremendous effect on real estates trend for many years.
On the other hand, the opposite is true, as the economy growth, homes sales begin to raise. Political Political factors affect companies in all type of industries and can have significant impact if change in government or policies occur Internal analyses take a look at firms on an individual basis to determine their abilities, while external analyses look at the industry or overall business environment.
But some new challenges have appeared. For example, increases in rainfall leading to flooding of the sugar cane fields or decreases in rain leading to droughts where cocoa beans are harvested can result in increased ingredients costs.
Home sellers often want to take advantage of listing their real estate property with recognized agencies Compeller, Osterwalder and Pigneur discuss the importance of understanding the external factors in the business environment when developing a business model; the organization must be able to adapt quickly to the changing environment.