What is the external business environment?

The external environment usually concerns external forces that can affect the organization. The external environment consists of two factors: task and general. The task environment usually consists of external groups that can affect the daily operation of the organization. In the general environment, external forces can influence the ability of the organization to do business.

In general, the environmental environment has dimensions that are directly interactive as the organization works. The task environment may include competitors, customers and suppliers. Because these dimensions can affect daily operations, it is usually devoted to everyone during strategic planning.

competitors can drive the market plan for advertising and product location. Competitors can exist in several different categories outside organizations that offer similar products or services. Competition in the external environment could be the one offered by the subjects product for customers, such as buying a motorcycle rather than a car. Another might be an unrelated trade that in ProsPThe errors of the community compete for the same property. For some organizations, customers may consist of individual consumers. In addition, customers could be other businesses or institutions. Changes in customer shopping habits can affect the external environment of the organization.

Suppliers are vital for providing resources necessary to develop products or services. Some organizations may decide to work exclusively with one or more suppliers, while others can use several different companies. Working with a number of suppliers can isolate the organization from potential failures if the exclusive supplier disappears.

The effects of general -alleged outer environment are usually vague and may have long -term consequences. Each dimension is indirectly interactive with the operation of the organization, but can still influence business decisions. These dimensions include economic, technological and socio -cultural vliyou. Political climate and global influences are also taken into account.

Economic dimension usually concerns the fiscal health of the area where the organization operates. Factors may usually include high unemployment and inflation, which can determine economic growth. For example, with high unemployment, the demand for products or services of the organization can be reduced.

Technological dimension generally covers methods used to develop products or services. Technology used in the organization - Taols and applications - typically comes from an external environment. Progress in technology can improve the competitiveness of the organization.

When non -partying is considering socio -cultural influences, it can focus on the cultural norms and behavior of people. Other features may also include demography and customs. Socio -cultural influences can help determine which types of products or services can appeal to society.

changes in political climate may relate to business regulations that could suppress or facilitate growth. The relationship that the organization with the government could influence business operations. The environment and political stability could determine the viability of business markets.

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more flattering world from transport and technological progress also factor in an external business environment. Global effects can increase pressure on the organization, even in places where business operations do not exist. Foreign competition for similar products or services may endanger profits.