0
External environmental factors are uncontrollable variables beyond the control of the organization. They consist of 5 groups:
1. Social factors- demographic characteristics and values.
2. Economic factors- income, expenditures, and resources that affect the cost of running a business.
3. Technological- inventions and innovations from science or engineering
4. Competitive- competition in the area
5. Regulatory forces- restrictions, state and Federal Laws placed on business with regard to the conduct of its activities
6. International factors.
7. Natural factors.
Competition from other businesses
Market demand
Product demand
Purchasing power/availability/price - and subsequent profit margin
Expendable income of consumers
Depends what it is but that would be for a standard business eg. corner store
Some external environmental factors particular to organizations would include the following.
- Competition (what are they doing?)
- Customer behavior (needs, wants, and desires)
- Industry out look (local, national, global)
- Demographics (the change populations, there density, etc.)
- Economy (are we peaking, or moving negatively)
- Political movements and/or interference
- Social environment
- Technological changes
- General environmental changes
- Government interference (laws, regulations, policies, ect.)
Internal Forces: * Poor financial performance * Employee dissatisfaction * Inefficiency of existing business processes and systems * Need to increase profitability * Existance of cultural misfits to organisation goals and objectives External Forces: * Changes in technology * Political factors * General macro-economic environment * Changes in consumer tastes, preferences, purchasing patterns & frequencies * Declining market shares due to competition
Add your answer:
Earn +20 pts
What type of barrier to communication is an environmental factor?
It depends on which environment factor you are referring to. There are internal and external environmental factors. Internal refers to factors within an organization and basically under the organizations control. External environmental factors refers to those factors outside of the organization and by in large not under the control of the organization.
What are the Internal and external environment of organization?
The internal environment of an organization encompasses factors such as company culture, leadership style, employee attitudes, and organizational structure. On the other hand, the external environment includes elements like market competition, economic conditions, technological advancements, regulatory factors, and societal trends that impact the organization's operations and performance. Both environments play a crucial role in shaping the organization's strategic decisions and overall success.
Explain the importance internal and external factors to be considered when drawing up the five year human resource plan?
Internal factors to be considered would be the company and how it will be changing in the next five years, how much money they will have, and what kind of staff training is available. External factors might be the climate of the economy.
What are the internal and external factors in market factors?
Market environment consist of all factors that in one way or another affect or affected by the organization desicion.there are external and internal factors. Internal factor , these involve (5M's)ManagementManpowermachinematerial andmoney.External factors , these includeMacro factor and micro factors.Macro factors are the one that affect the organization indirectly, these are (pestel)Politicalenviromentsocia-culturaltechnological andEcologicalleagalwhile micro factors are those which affect the organization directly it involvecustomerscompetitorssuppliers andpublic
What is the difference between the general environment and the task environment?
General environment is the types of External environment that affect the performance of Business organization indirectly, it comprise the following factors: 1.Political factors 2. Economic factors 3. social cultural factors 4. Technological factors 5.Demographic factors Task environment is the types of External environment that affect the performance of Business organization directly, it comprise the following factors: 1.Customers 2.Suppliers 3.shareholders 4.Environmentalist 5.Government agencies 6.Competitors 7.Media etc.
Explain in detail internal and external factors affecting business environment?
internal and external factors in the organizational environment
How can a decision maker identify strategic factors in the corporations external international environment?
how can a decision maker indentify strategic factors in the corporation external environment
What are the internal and external factors in business environment?
Some internal factors that impact the business environment include competitors and business resources. External factors that affect the business environment barriers to entry and government regulations.
Why is it important to monitor the macro-environment of a firm?
It is very important to monitor the macro-environment of a firm as they will directly affect the organization. These are external factors that a firm will not have control over and will affect the performance of the business.
How can a decision maker identify strategic factors in a corporation external environment?
NbvmjbkjbvHow can a decision-maker identify strategic factors in a corporation’s external international environment?
How can a decision maker identify strategic factors in a corporation's external environment?
NbvmjbkjbvHow can a decision-maker identify strategic factors in a corporation’s external international environment?
How can a decision maker identify strategic factors in the corporation's external environment?
NbvmjbkjbvHow can a decision-maker identify strategic factors in a corporation’s external international environment?
