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External Environment Factor

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seema.sonkiya
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External Environment Factor

Postby seema.sonkiya Mon Sep 01, 2014 8:53 am

An external environment analysis studies information about a business industry, competition, political, economic, and social change. These factors affect the business but are out of control and organisations need to develop strategies accordingly.

Which one is an example of external environment factor?
1. Financial Resources
2. Good Market reputation
3. New Technology
4. Motivated Staff

What is the best answer?
namita
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Re: External Environment Factor

Postby namita Mon Sep 01, 2014 9:35 am

Hi Seema,

Looking at insights of external env factors, here is what I feel... please elaborate

1. Financial Resources - This should be internal organizational matter, this can be economic factor if this has some inclination of inflation etc
2. Good Market reputation - This is not the factor who's study help in Business
3. New Technology - Yes this should be one area of interest as competition will be driven with it
4. Motivated Staff - Internal to Org
seema.sonkiya
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Re: External Environment Factor

Postby seema.sonkiya Mon Sep 01, 2014 10:23 am

Thanks Namita for the answer, I will reply the correct one after getting few other’s view.

Just to add financial resources are not economic factors. Example economic factors are Inflation rate, interest rate and foreign exchange rate.
Economic factors are related to the economic performance that directly impact a company and have long term impacts.

All of my 4 options are environmental factors either Internal or External. Here we need to choose external environmental factors.
akanksha.ashar5
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Re: External Environment Factor

Postby akanksha.ashar5 Tue Nov 29, 2016 6:06 am

I too think that New Technology is the external environmental factor because New Technology may influence or impact current capabilities or processes or any functioning or existing/ongoing projects in an enterprise or organization.

Financial resources here is the internal strength of the enterprise/organization.
seema.sonkiya
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Re: External Environment Factor

Postby seema.sonkiya Tue Nov 29, 2016 10:40 am

Yes, Akanksha you are right.

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