Question

Give three examples of things that are happening in our world today relating to these external factors that will have a major effect on particular types of businesses.

The external forces are:

1. economic forces

2. social, cultural, demographic, and natural environment forces

3. political, governmental, and legal forces

4. technological forces

5. competitive forces

Answer 1

Example of things under the each component of external forces are as follows:

1. economic forces

A- Growing purchasing power, but growing inequality as well

B- Rise in productivity and GDP as well

C- Economy and employment focussed upon skills while creating new jobs

2. social, cultural, demographic, and natural environment forces

A-Cultural openness and decrease in uncertainty avoidance

B - People embracing the culture of other nations

C- Development towards the demographic change due to changing population and adoption of diversity

3. political, governmental, and legal forces

A-More number of bilateral and multi lateral agreements among the nations

B- Regulatory reforms in the countries with necessary provisions

C - Opening up of the economies across the globe

4. technological forces

A- Firms being driven by the innovation and creativity

B- Occurence of technological overlapping due to globalization

C. Technology is being spread fast with formal agreements between the nations

5. competitive forces

A- Rivalries are increasing and new firms specifically from China are entering

B. New firms in each sector as the globalization is being spread

C. Human resource being treated as competitive advantage