Forces in the external environment play a major role in shaping managers' endeavors. The external environment includes these six broad external conditions that may affect the organization: economic, political/legal, sociocultural, demographic, technological, and global conditions. Political/legal conditions include the general political stability of countries in which an organization does business and the specific atti¬tudes that elected officials have toward business. Federal, state, and local governments can influence what organizations can and cannot do. Sociocultural conditions include the changing expectations of society. Societal values, customs, and tastes can change, and managers must be aware of these changes. Technological conditions have changed more rapidly than any other element of the general environment. Global factors include global competitors and global consumer markets.
Sets with similar termsAre any constituencies in an organizations external environment that are affected by the organizations decisions and actions?
MANAGING STAKEHOLDER RELATIONSHIPS • Stakeholders - any constituencies in the organization's environment that are affected by an organization's decisions and actions.
Here are the nine types of external environment factors that affect businesses:.
Technological factors. ... .
Economic factors. ... .
Political and legal factors. ... .
Demographic factors. ... .
Social factors. ... .
Competitive factors. ... .
Global factors. ... .
Ethical factors..
An external environment is composed of all the outside factors or influences that impact the operation of business. The business must act or react to keep up its flow of operations. The external environment can be broken down into two types: the micro environment and the macro environment.