External environment of a business consists of all those external factors that are operating outside the premises of the organization. However, they impose a significant influence over the operations, survival and growth of the company.
Due to utmost dependence on equipment, technological factors have more effect on business environment and success globally than ever before. Strategic leaders always look for technological advancement so that can change business transformation.
Political factors are part of marketing external environment that are uncontrollable and can affect business environment. Managers must keep a bird’s eye view on political factors like current and impending legislation, political stability and
The micro environment factors affect business strategy, management decision making includes customers, suppliers, competitors, shareholders & media
Macro Environment is the external environment greatly influenced the business success, strategies and decision making. These factors are uncountable by the business organizations. Or The wider and broader set of economical conditions is known as macro environment.
In the legal environment of a business, we are looking the key areas, particularly where law changes and how legal aspects affect businesses. All these legal factors are contained in the legal environment of a business.
The social environment of a business consists of all that a society believes, its customs, its practices and it’s the way it behaves. Largely, it is an artificial construct that can be clearly contrasted with the natural environment in which we have our livelihoods.
All businesses, whether domestic or international, are affected by the dynamic economic environment conditions prevalent in the market. Among the economic factors affecting business and these are; interest rates, demand and supply, recession, inflation, etc.