Top 10 external factors that affect business environment
: Every business organization has a social responsibility. It operates within the norms of society and strives to satisfy the needs and wants of society.
The economic factors that influence a business environment are per capita income, national income, infrastructure development, and capital formation resources mobilization.
The cultural factors of a business environment should also be taken into consideration while scanning of environment and during the formulation.
: Geographical location, seasonal variations, climatic. Condition and other factors considerably affect the tastes and preferences of customers.
: Technology is considered to be one of the most important factors in any business environment.
: Companies with successful products and services evaluate the demographics of their target market to ensure they meet the needs of those who benefit from their offerings.
Political and legal factors
: As political officials leave office and new ones replace them, the policies they implement often affect businesses in relevant industries.
: Businesses can increase their market share and stay relevant to their customers by keeping track of their competitors.
Executives have a duty to keep track of both domestic and global issues, especially if they conduct business internationally.
: Some companies may find it challenging to balance the personal lives of staff members with their expectations in the workplace.