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Hi, need to submit a 500 words essay on the topic External Factors Influencing Organizations.The economic factors are of great importance in creating a serene environment for the organization. Differe
Hi, need to submit a 500 words essay on the topic External Factors Influencing Organizations.
The economic factors are of great importance in creating a serene environment for the organization. Different aspects such as interest rates and exchange rates affect the performance of the business. This is through affecting the prices of products or raw materials and cost of production (Strydom & Smith, .2011).
Social factors have a major impact on the consumption behavior of the target market. For instance, people’s culture and attitude towards specific products, demographic shift, and fashion trends affects the organization (Strydom & Smith, .2011).
The changing technological factors have a major impact on the business. For instance, the businesses are forced to keep on updating their technologies in order to remain competitive. Other companies are forced to invest heavily in innovation in order to keep up with the changing technological trends (Strydom & Smith, .2011).
Environmental factors affect the position of the business in the market. Environmental compliance and participation in reducing the level of global warming are some of the aspects that attract customers towards the organizations. Therefore, organizations are forced to set up part of their profits to be directed towards environmental conservation (Strydom & Smith, .2011).
Legal factors such as laws that govern the labor relations affect organizations in the market. Companies must comply with these laws or risk losing their operating licenses (Knights & Willmott, .2012).
