Identify these external factor and explain in detail primarily how the external factor have or would influence your organization in its strategic planning . Elaborate your answer with example.
Organizational activities and future plans are constantly affected by the internal and external environmental factors.
For success in the present world, one need to consider not only the internal environment of the company consisting of its resources and employees, but also needs to consider the external factors. These aspects cannot be stopped but one can adjust accordingly as per the changes in the economical, social or political pressures.
hese are the external factors which consist of:
• Opponents or competitors
• The changing economic structure
• Impact of the society
• Financial arrangement
• Legal or political system
• The impact of the environment
Opponent's procedures influence the capability of work in earning profits, as the basic aim of the opponent is to get advantage over the other which is obtained by either diversifying the existing products and services or by finding means to offer better options for the same worth of money. There are three stages of opposition existing in the present world organizations which can be either having a straight competition when the associations are challenging for the similar customers with the analogous products for example grocery or bakery items. Or when there is a rivalry existing between goods that can be replaced with one another for example butter for margarine. Similarly when consumer's purchasing power is the main attraction for the producers it results in competition between organizations for example the entertainment sector.
The allocation of the scarce resources is handled by the organization comprising the economic system. Economy is part of a nation which is expected to... [continues]
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