What are environmental factors in business?
Quick Answer
Environmental factors are external factors that can't be controlled by a business, according to the Houston Chronicle. These factors fall into several categories, including socioeconomic, legal or ethical, political and technological factors.
Continue ReadingFull Answer
When a business operates in a particular location, it must consider how internal and external factors will affect various business operations and strategies. Internal factors are modified through the actions of company executives and management, where external factors are regulated by entities outside a business's chain of command. For example, the legal, ethical and government environments determine the laws and code of ethics a business has to abide by in order to function as a legal entity. Changes in the technological environment also influence the types of products or services offered by a business as well as its configuration of supply chains and distribution channels.
One of the most important external factors for business is competition from other companies. Businesses use competitive analysis to gain a competitive advantage in the marketplace and to compare their product offerings to those of competitors. Changes in consumer tastes are also taken into consideration when creating a plan to achieve competitive advantage. Companies must be quick to adapt to changes in the external environment in order to keep up with the latest industry trends and regulations.
Learn more about Business ResourcesRelated Questions
-
Q:
What are some safety topics for employee meetings?
A: Some safety topics for employee meetings include first aid, fire and noise, according to the Houston Chronicle. Different companies have different work env... Full Answer >Filed Under: -
Q:
What are some OSHA requirements regarding breaks and lunches?
A: The Occupational Safety and Health Administration doesn’t regulate the number or length of breaks or lunches, according to the Houston Chronicle. However, ... Full Answer >Filed Under: -
Q:
What kind of permit do I need to start a day care business?
A: Most states require day care businesses to have a license, and some cities and counties may also require licensing, according to the Houston Chronicle. Pro... Full Answer >Filed Under: -
Q:
What are some common points on safety inspection checklists?
A: Safety inspection checklists usually include the grounds and internal structures of offices, plumbing and electrical units, fire doors and all exits, first... Full Answer >Filed Under:
You May Also Like
-
Q:
What are some examples of fax templates?
-
Q:
Is Robberson Ford used car dealership a reputable business?
-
Q:
What factors influence world oil prices?
-
Q:
How do you find workers' compensation forms?
-
Q:
Where can I download a free MSDS aka material safety data sheet?
-
Q:
What are some factors that influence future gas prices?
