A business firm should at all times be in a position to adjust its daily operation depending on the prevailing economic forces in the market. A small change in the economy will be reflected in the business operations. There are various factors under economy that have a direct impact on success and growth of Nokia Corporation. The government through taxation process can influence a business firm to a greater extend. By imposing high tax on produced goods and services it hikes the cost of production that in turn would lead to increases in price. On the other hand low taxation will mean low cost of production hence low price of goods and service which in turn will to an increase in sale volume. Bearing this in mind Nokia Corporation should at all moment try to adjust its operation in relation to the amount of money charged on taxation.
With occurrence of inflation in the nation it will negatively influence the economic growth of the nation. Following the high cost of living being experienced currently it means that workers would ask more money inform of salary. This in turn will affect the daily operation cost of the firm thus increasing its chance of collapsing. On the contrarily an increase in the nation income would mean that people have sufficient money to purchase goods and services thus improving the success and development of the company. Change in currency affects the process of production in a company. This will be evidence when either importing or exporting goods from or to another country. Exportation will be expensive thus discouraging people to export whereas on the other hand importation would be less expensive hence encouraging trade. The exported goods will be expensive affecting sales return while importing will be cheap boosting purchasing power (Corporation Nokia, 2002).
The society is not static in nature keeps on changing with the prevailing conditions in the environment. A small trend in the social context may lead to an increase of certain goods and services. For example in United States more people are aging which has in turn compelled companies to manufacture more goods and services that belong to this population domain. On the other hand, there have been more companies that are providing life insurance policy because many people are ageing and fear to die. It is in respect to this perspective that any business corporation should always formulate its goals according to the changes taking place in the society. The firm should also focus on the population composition of the society. Different groups of people in the society would prefer certain goods and services. For instance, if there are more young people than old folks, it will mean companies should manufacture more goods belonging to the youths than goods and services for old persons.