What can business do to prevent unexpected problems in dealing with sociocultural, economic and financial, legal and regulatory, and physical and environmental forces in global market?

Businesses should conduct a SWOT analysis before putting in practice their business model and economic activities and repeat it periodically afterwards. SWOT stands for Strenghts, Weaknesses, Opportunities and Threats.

SWOT consists on elaborating an in-depth analysis about:

External factors and features of the business environment and its industry which are not under the control of the firm: Opportunities and threats. A distinction is made between those who can be positive for the business (interest rates are decreasing due to the country's economic situation and hence it can be a good moment for the company to start new investments) or negative (a competitor is developing a new technology  that allows him to provide the same service than the firm of interest but much quicker). Internal factors, list those aspects from inside the firm's organization that be considered either advantages (satisfied employees) or disadvantages (obsolote machines). These are known the Streghts and Weaknesses.

For a better insight, have a look to the SWOT matrix example in the picture attached.

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