External Environment And Its Impact On Business - 2137 Words

External Environment External Environment refers to market conditions, economic and political issues on the local and national levels, demographic factors, and other forces outside of a business that affect the overall success of that business. The external environment creates both risks and opportunities for a company. 1 ECONOMY Economic activity is the Actions that involve the production, distribution and consumption of goods and services at all levels within a society. Gross domestic product or GDP is one way of assessing economic activity, and the degree of current economic activity and forecasts for its future level can significantly impact business activity and profits, as well as inflation and interest rates. GDP (Gross Domestic Product) is one of the primary indicators used to gauge the health of a country’s economy. It represents the total value of all goods and services produced over a specific time period. Usually, GDP is expressed as a comparison to the previous quarter or year. Use the United Kingdom for example, for 2003 until early it grew steadily, and which point a financial market shock affected UK and global economic growth. Up until that point, services in the UK had continued to grow steadily, while production output had been broadly flat over the same period. Construction activity grew strongly in the early part of the decade, and although there was a temporary decline in the mid-2005s. this was reversed by the end of 2007. The deterioration inShow MoreRelatedImpact of External Environment on Business2158 Words   |  9 Pagesthis hotel, illustration of how changes in external environment factors have impacted on business over the last 5 to 10 years. Also, this pape r will examine the environmental forces that are relevant to the business and discuss the rationale behind the environmental forces. Moreover, it presents an outline why other factors and forces may not be relevant to this business. Finally, this paper will identify and discuss the forces that may effect on business over the next decade or so supplemented withRead MorePorter’S Model:. Tesla Motors To Maintain Its Profitability1217 Words   |  5 Pagesof automotive business analysis outlined in the five armies. Michael Porter s five-power analysis model is designed as an instrument to understand the impact of external factors on the conditions of doing business and the environment of their industry. Analysis of Tesla s five armies of external factors in the automotive industry, and how these factors affect the company. As one of the largest participants in the electric vehicle market, Tesla must effectively address these external factors in orderRead MoreMicrosoft Internal A nd External Factors1652 Words   |  7 Pages Trends Business Environment: Successful companies practice a disciplined management strategy which encompasses the four functions of management: planning, organizing, leading, and controlling. The application of these management practices is evident in further analyzing the management construct of Microsoft Corporation. A global corporation who specializes in providing technology solutions for five different business segments ranging from personal computers to gaming devices, Microsoft has demonstratedRead MoreElements of Small Business Environment1534 Words   |  7 PagesELEMENT OF THE SMALL BUSINESS ENVIRONMENT Entrepreneurship Individual Assignment THE ELEMENT OF THE SMALL BUSINESS ENVIRONMENT Entrepreneurship Individual Assignment NGUYEN THAI HA B0074 - BA505 ETR401   |   LECTURER: MR. NGHIAHT NGUYEN THAI HA B0074 - BA505 ETR401   |   LECTURER: MR. NGHIAHT CONTENTS I. INTRODUCTION of ENVIRONMENT II. INTERNAL ENVIRONMENT III. EXTERNAL ENVIRONMENT 1. Task Environment 2. General Environment IV. CONCLUSION Read MoreInternal And External Factors Affecting A Business Organization1365 Words   |  6 Pagessituational analysis, is a technique used by companies to evaluate the internal and external factors affecting a business organization. With this useful tool they are able to set future goals, define strategic plans and collect information about the social environment in which they operate. This strategic tool is classified by internal factors (Strengths and Weaknesses), means that the company has total control of it and external factors (Opportunities and Threats), the company cannot control it. InternalRead MoreOrganizational Environment1529 Words   |  7 PagesOrganizational Environment Organizational Environment: those forces outside its boundaries that can impact it. Forces can change over time and are made up of Opportunities and Threats. (7) The Organizational environment refers to the forces that can make an impact. Forces made up opportunities and threats. Organizations do not exist in isolation. It works with the overall environment. Scholars have divided these environmental factors into two main parts as. Internal Environment External EnvironmentRead MoreThe Long Term Goals Of A Business1725 Words   |  7 PagesLooking at the long-term goals of a business and taking into account different internal and external factors creates a firm’s business strategy. It is necessary for a firm to analyse and respond to the competitive environment due to the constantly changing nature outside the business. The competitive environment can be defined as the market in which the business trades against its competitors, with similar products or services, with the aim of gaining the largest market share using a competitiveRead MorePestel / Pestle Analysis Of Amazon971 Words   |  4 Pageswant to speak about its Pest analysis is Amazon. Amazon.com Inc. successfully shelters the issues shown in the PESTEL/PESTLE examination of its e-commerce business and remote or macro-environment. The PESTEL/PESTLE Analysis model is a tool for classifying the external factors that shape the conditions of a company’s remote or macro-environment. In the case of Amazon, the circumstances of the online retail market are measured. As the largest firm in the market, the company enjoys the benefits of highRead MoreGlobal Factors Affecting Business1002 Words   |  5 PagesGlobal factors affecting business The way of running the business differs from country to country. The marketing, sales and technical skills are required to increase the productivity of business. Business in general is enhanced when people from different cultures find new approaches to old problems, creating solutions by combining cultural perspectives and learning to see issues from the viewpoint of others. Business Environment consists of factors influential to the business operations. These factorsRead MoreExternal Factors And The Business Model1480 Words   |  6 PagesExternal Factors and the Business Model To build a successful business model, the organization must analyze the business environment for external forces. Osterwalder and Pigneur (2010) discuss the importance of identifying the external factors in the business environment; the organization must be able to adapt the business model to the changing environment. External factors of demand play a critical role in developing a business model, an organization must quickly identify external threats and