External factors external factors that affect an organization may be political, economic, social or technological the same internal factors that lead to an organization's success inevitably characterize that organization's relationship to the external environment in these broad areas. The internal factors that affect business are such factors as employees, competitors, customers, suppliers and the culture of the organization these are factors which business can control the external factors affecting a business comprise of such factors as technology, government and its policies, economic forces and elements, socio-cultural factors, and international factors.
External environment of a business consists of all those external factors that are operating outside the premises of the organization however, they impose a significant influence over the operations, survival and growth of the company. External environment factors can significantly affect business operations and effectiveness to a great extent types of external environment of a business micro environment – environmental factors that can either be controlled or influenced by the organization are termed as micro environmental factors which include employees, customers. Almost everything that affects a company’s ability to compete and respond successfully to changes in the external environment is an aspect of that company's culture, which encompasses the.
External factors affecting business environment economic forces the economic environment can have a major impact on businesses by affecting patterns of demand and supply companies need to keep a track of relevant economic indicators and monitor them over time income income indicates a customer’s ability to spend on the products sold by the marketer. In summary, the external factors that affect a business are the variables which influence the operation and performance of a company despite their innate inability to be changed they play a huge part in both the swot analysis, and the pestle analysis.
Internal and external factors have a huge effect on the success or failure of a business business owners can’t control external factors, but they must be able to anticipate and adjust to these factors to keep their organizations on track. External factors: the economic environment can have a major impact on businesses by affecting patterns of demand and supply companies need to keep a track of relevant economic indicators and monitor them over time.
These factors impact each business and industry differently, which only increases the importance of managers understanding these external forces types of external forces there is no shortage of frameworks and acronyms that attempt to summarize the types of external forces that impact businesses. Knowing how internal and external environmental factors affect your company can help your business thrive external: the economy in a bad economy, even a well-run business may not be able to survive. From the external factors such as political, economic, social, technological, legal and environmental, the business can affect various way for example if the government changes the employment law or rules that can affect in business from the business perspective how the operate an organisation.
Example of market external factors that affect business below are some examples of external factors that may affect businesses growth, profit share and even customer base if not responded coca cola and indian political environment – coca cola is the most popular and the world’s largest beverage company.