Socio-economic Impact Analysis

What analysis focuses on the impacts of business operations on various sectors that it interacts with?

• SWOT Analysis

• Environmental Scanning in Industry Analysis

• Socioeconomic Impact Analysis

• Economic Analysis

What is the intent of an impact analysis?

• to identify the strengths, weaknesses, opportunities, and threats of a business

• to identify and assess the effects of its operations on various sectors

• to analyze the various components of economics as a social science

• to help the company in deciding which areas they have to improve in to gain more profit

The firm creates an impact on:

• sellers only

• buyers only

• both sellers and buyers

• buyers more than sellers

Externalities are ___________

• the external forces that indirectly affects the transactions of firms and suppliers

• part of the transaction made between businesspeople, specifically, sellers and buyers

• not to be minded when making a socio-economic impact analysis because focusing on the inside parties is more important

• benefits reaped and costs incurred by parties outside the transactions between firms and suppliers; and firms and their buyers

Choose two main categories of inputs in its production process.

• intermediate inputs

• starting inputs

• variable inputs

• factor inputs

The impact of the production operation of the firm on the suppliers of its intermediate inputs will depend all of these, except:

• sources of raw materials

• stage of product transformation

• bargaining power of suppliers

• market power of the firm

Sourcing raw materials from internal suppliers can create income and employment opportunities to its producers. While sourcing them from foreign suppliers will have a direct effect on a foreign economy.

• Independent Suppliers vs. Subsidiary Conglomerate

• Internal vs. External Sources

• Raw vs. Semi-processed Inputs

• Market power of the firm

Sourcing intermediate inputs from independent suppliers domestically may have greater ripple effects than sourcing it from a subsidiary of a conglomerate.

• Independent Suppliers vs. Subsidiary of Conglomerate

• Internal vs. External Sources

• Raw vs. Semi-processed Inputs

• Market Power of the Firm

Sourcing intermediate inputs that are still very raw in product transformation will have limited multiplier effects. Sourcing semi-processed intermediate inputs imply that they have undergone several stages of processing, thus contributing several values of added.

• Raw vs. Semi-processed Inputs

• Market Power of the Firm

• Internal vs. External Outputs

• Independent Suppliers vs. Subsidiary of a Conglomerate

The purchasing firm may extract market power in the industry by extracting surplus from them.

• Independent Suppliers vs. Subsidiary of a Conglomerate

• Internal vs. External Sources

• Raw vs.Semi-processed

• Market Power of the Firm