Question

Discuss how the external environment impacts your company? If you are not able to use your company, select a different company.

Answer 1

The external environment is defined as the external factors or conditions that affect or influence the business either directly or indirectly. I work for a telecommunication company in Qatar that does the installation and maintenance works for the major telecom operators Vodafone and Ooredoo. Some of the external factors that have an impact on the company are:

• Political factor: Saudi Arabia led blockade on Qatar had a significant impact on the business because the only land route for Qatar is through Saudi Arabia and before the blockade, Qatar was depending most of the products and services from Saudi Arabia. As the only land route was blocked, the telecommunication materials were unable to transport easily because of which it was transported through the air that increased the price of the materials.
• Climatic conditions: Summer is the regular external factor that affects the company as the temperature rises more than 40 degrees because of which for a certain period of time outdoor works are not allowed between 11.30 AM to 3.30 PM. Hence the performance or the productivity over that period of time will be comparatively low.
• Legal factor: The country and the company depends on the expatriates for its operation. Due to high restrictions on the visa and the work permit systems, the employment cost is high and it must be renewed every year failing which will lead to a hectic fine.
• Mirco environment: For some of the projects the company has outsourced and hence in case of bankruptcy (which has happened at a time earlier), it directly affects the reputation and the profit for the company.  
• Environmental consideration: Recently, because of the deadly coronavirus (COVID-19) that has affected most of the regions, it affected the company by restricting the entry and exit of the workers working in the company. Also, it cannot access some of the sites near the labor camp because of the quarantine and hence the routine operations are affected.