answersLogoWhite

0


Best Answer

Your external environments are aspects that your organization can't control, such as government, customers, laws, economic shifts, etc. The internal environment can be controlled, which can be employees, strategy management, profits, real estate, etc. Both are used during SWOT anaylsis and are common for businesses to use.

User Avatar

Wiki User

15y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

14y ago

Some external environmental factors would include:

  • competition
  • economy
  • Demographics
  • government interference
  • consumer behavior
  • political issues
  • location
This answer is:
User Avatar

User Avatar

Wiki User

13y ago

The below is an answer to another individuals question. However, you can gain what you need from it as it relates to the internal and external environment which I call internal and external driving forces.

Internal and External Driving Force

Thee are two types of driving forces (factors) that affect the way an organization operates in either a positive or negative way. Internal driving forces and external driving forces. Internal driving forces are those types of things, events, situations, that occur within an organization and effect it in either a positive or negative way. Typically, the internal forces are things that occur within the organization and are by-and-large under the control of the organization. Example, does the organization have up to date technology that has the capacity to hold power programs that can help the organization. Or, are they working with an old antiquated legacy system that is slow, crashes frequently, etc. This effects the organizations day-to-day operations. It's something that in internal and under the control of the organization. Even the culture of the organization effects the way it operates. In other words, are the employees happy, do they come into work energized, or do they come to work dragging themselves in because it's Monday and doing cartwheels out the door because it's Friday. This effects the way the organization operates in either a positive or negative way. Once again it is an internal event and under the control of the organization.

Now to address your question. External driving forces (factors) are those things, situations, events, that occur outside of the organization and effect it in either a positive or negative way. Example, the overall economy. This occurs outside the organization and by-and-large out of the control of the organization. In other words, are people spending money, or stashing it away because of financial concerns. This effects the organization. Another example could be changing demographics. Another, even weather. Weather can effect organizations such as farmers, ski resorts, catastrophes such as flooding, earthquakes etc. can effect all organizations. This occurs outside of the organization, and beyond the control of the organization. Still, it could effect it in either a negative or positive way. Another important external driving force would be competition. What is the competition doing, to gain more of the market share. It's occurring outside of the organization, out f the control of the organization, can effect it in either a positive or negative way. This is why informational resources are critical to the success, stability, and survivability of organizations.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are external environment and how does they affect an organization?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What are examples of external business environment?

The external business environment are the things outside of an organization that affect the functionality of the business. Some examples of the external business environment include customers, economy, government and public opinion.


What is an example of an organization's strategic response to its external environment?

An organization's external environment is often out of the organization's control. One example of a strategic response to an organization's external environment is adapting its practices according to new laws that are out of their control.


What are the differences between internal and external environment?

The differences between internal and external environment is: Internal environment involve within the organization, which are the employee attitudes,new equipment,strategy,work forces. The organization has the control of these matters because it happen within the organization unless like external environment. AND for the external environment,is clearly stated with the word external itself which means outside of the organizations which effect the changes in the organization which the organization does not have the control of it. External environment are involved by the PESTLE- Politic, Economy, Social, Technology, Legal and Environment.


Why is it important to monitor the macro-environment of a firm?

It is very important to monitor the macro-environment of a firm as they will directly affect the organization. These are external factors that a firm will not have control over and will affect the performance of the business.


What are the Internal and external environment of organization?

The internal environment of an organization encompasses factors such as company culture, leadership style, employee attitudes, and organizational structure. On the other hand, the external environment includes elements like market competition, economic conditions, technological advancements, regulatory factors, and societal trends that impact the organization's operations and performance. Both environments play a crucial role in shaping the organization's strategic decisions and overall success.


Which environment is not an important dimension of a business organization's external environment?

the corporate cultural environment


How a manager manages internal and external environment of the organisation?

A manager manages internal environment of the organization by keeping track of all the departments of the organization. A manager manages external environment of the organization by keeping track of all the customers, competitions and economy.


Which environment is not an important dimension of a business organization's external environmetn?

the corporate cultural environment


What are the two types of external environment?

The two types of external organizational environments are the internal and the external organization environments.


How do the external environment of an organization influence its strategic choices?

The external environment, such as location and weather, influence the strategies that an organization will choose to make by affecting what they can feasibly do and what viewer audience base they can reach.


What are the internal and external factors in market factors?

Market environment consist of all factors that in one way or another affect or affected by the organization desicion.there are external and internal factors. Internal factor , these involve (5M's)ManagementManpowermachinematerial andmoney.External factors , these includeMacro factor and micro factors.Macro factors are the one that affect the organization indirectly, these are (pestel)Politicalenviromentsocia-culturaltechnological andEcologicalleagalwhile micro factors are those which affect the organization directly it involvecustomerscompetitorssuppliers andpublic


What are the external and internal circumstances that surround a business?

The external environment is everything outside of the business. The internal environment is everything inside the organization, but it is not limited to one facility.