Question

Aspects of the External Environment Consider a business that you frequent (for example, a restuarant, grocery store, etc.) and review the six aspects of the external environment discussed in the text. Create a list of factors in the external environment that could affect the management of the business you selected. An initial post requires organized writing (introduction/body/conclusion) that is supported by evidence (peer-reviewed literature, textbook). Citations/references must be written in APA format. Responses to two other students must be organized and complete with a comprehensive paragraph that cont the group. ns citation(s) and reference(s). Responses should add to the knowledge and thinking of

Answer 1

Outside factors can impact a business in both positive and negative ways. These external factors may be competition, technological advancements, political influences, economic stability and social stability. There description are as following-

1. Competition:- If positive competition is there then it is good for business. Competition is the factor which motivates us for continuous betterment. It inspire us for making better strategies to attract new customers and to retain the older one.

This competition is also good for customers because it ensures better choices and better services to them.

2. Technological Advancements- If we can synchronise with the technological development taking place in world then we increase the chances of our survival in market. Traditional methods may seem outdated and hence there remains a need to adopt new techniques for better management of resources and effective operations of services.

3. Political Conditions:- If in a region there is political instability; then there remains a threat of riots, violence, thefts and other criminal activities. The thought of a successful business seems to be a tedious task. New players also avoid to enter in such disturbing environment.

Peaceful surrounding with a well functioning government machinery is mandatory to have a successful business setup.

4. Economic stability- If a society is undergoing high economic instability and can not ensure the protection to economics benefits then also business becomes negatively impacted. Open and encouraging economic policies attract various business groups.

5. Social stability:- It is the most crucial factor for setting of a successful business. Element of diversity in a society increases the chances of business expansion with great margins. Stable society also leads to better cooperation in setting up of new businesses.

Intermingling of cultures in a peaceful society also leads to development of new texture which may lead to better reach of services.