External Environment and Success- In a business setting, the external environmen
ID: 330243 • Letter: E
Question
External Environment and Success-In a business setting, the external environment is beyond the direct control of a company, but it plays an integral role in the success of the company.
What makes the external environment so critical to success and yet so difficult to interact with?
External Environmental Factors- To understand the competitive environment in business, managers need to gather the required information. Gathering the relevant information could be time consuming but is an important activity that has potential to impact overall business strategy.
What are the external environmental factors that a company should be aware of? Remember to consider both sides of this topic.
Explanation / Answer
To proceed, let us first define what exactly is EXTERNAL ENVIRONMENT to a business;
EXTERNAL ENVIRONMENT are outside (outside to the company) forces that control and affect the business, the external factors affects business in its strategic goals achievement either in positive or in a negative way
Given below are the external environment factors that affects the business and hence the company shouls be aware of these:
The external environment has a significant influence on the growth and success of an organization. The organization hasr no control over what happens in the external environment.
Management is important in creating a plan of action for what has, is and will happen in the environment outside of that organization.
The external environment is difficult to interact due to uncertainty.
Not every factor of the external environment impacts the day to day operation, rather they shows a sudden last stage impact on the business, foe example a legal policicy in a country is changed at a time when the products of an industry are already manufactured and are about to float in a market, some recent legal policy imparts a ban on the market floatation of the product and in such a way it is a last stage change that the external environment had on the business.
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