There are seven external factors that could influence business and marking efforts. In this paper I will describe each of the external factors, plus I will tell you the advantage and disadvantage of two of the external factors.
The external factors will be talking about are
Competitive Environment:
The competitive environment of a business is the part of a company's external environment that consists of other firms trying to win customers in the same market
Economic Environment:
The totality of economic factors, such as employment, income, inflation, interest rates,
productivity, and wealth, that influence the buying behavior of consumers and institutions.
Political Legal Environment
The governments actions which affects the operations of a company or business. These actions may be on local, regional, national or international level.
Technological Environment:
Changes in technology affect how a company will do business. A business may have to dramatically change their operating strategy as a result of changes in the technological environment.
Sociocultural Environment:
A set of beliefs, customs, practices and behavior that exists within a population is very important.
Demographic Variables:
Personal statistics that include such information as income level, gender, educational level, location, ethnicity, race, and family size
Natural Environment:
The climate, weather, and natural resources that affect human survival and economic activity is a part of natural environment.
The advantages and disadvantage of 2 external factor!
Competitive Environment:
Advantages:
1. Competition between different firms leads to increased efficiency, as firms do whatever is necessary—including laying off workers—to lower their costs
2. Most people work harder (the threat of losing one's job is a great motivator)
Disadvantages:
1. Distorted investment priorities, as wealth gets directed into what will earn the largest profit... [continues]
The external factors will be talking about are
Competitive Environment:
The competitive environment of a business is the part of a company's external environment that consists of other firms trying to win customers in the same market
Economic Environment:
The totality of economic factors, such as employment, income, inflation, interest rates,
productivity, and wealth, that influence the buying behavior of consumers and institutions.
Political Legal Environment
The governments actions which affects the operations of a company or business. These actions may be on local, regional, national or international level.
Technological Environment:
Changes in technology affect how a company will do business. A business may have to dramatically change their operating strategy as a result of changes in the technological environment.
Sociocultural Environment:
A set of beliefs, customs, practices and behavior that exists within a population is very important.
Demographic Variables:
Personal statistics that include such information as income level, gender, educational level, location, ethnicity, race, and family size
Natural Environment:
The climate, weather, and natural resources that affect human survival and economic activity is a part of natural environment.
The advantages and disadvantage of 2 external factor!
Competitive Environment:
Advantages:
1. Competition between different firms leads to increased efficiency, as firms do whatever is necessary—including laying off workers—to lower their costs
2. Most people work harder (the threat of losing one's job is a great motivator)
Disadvantages:
1. Distorted investment priorities, as wealth gets directed into what will earn the largest profit... [continues]
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