Describe the Environmental Forces that Affect Businesses
Mariam Peyton is a professional Financial Analyst. She holds a Masters degree in Economics. She specialises in financial analysis and forecasting. Her expertise includes studying the financial performance of companies, markets and entire industries looking for trends, insights and information that can help you glean rich insights for use in academic and market research.
Latest posts by Mariam Peyton (see all)
Organizations do not operate in a vacuum, they operate in an environment that directly influences how they operate and achieve their goals. Business operations are greatly shaped by changes in the economy, laws, government changes, technology innovations, changing demographics as well as consumer habits. Irrespective of their size, every company is today operating in a difficult environment because of high competition, changing demographics, and a volatile economy. This assignment examined the various environmental forces that affect the company's ability to serve its customers
Environmental forces are external factors that influence the company's ability to serve its customers. They include economic, social, technological, political, legal, and ecological factors. These forces can create opportunities or threats for the company, depending on how they affect its resources, capabilities, and competitive advantage. The company should monitor and analyze these forces regularly to adapt its strategies and operations accordingly.
Companies are constrained by micro- and macro-environmental forces. Microenvironmental forces include company departments, suppliers, marketing intermediaries, customers, competitors, and various publics. Macro environmental forces include demographic, economic, natural, technological, political, and cultural forces.
HARVARD
Citation Here
Citation Here
APA
Citation Here
MLA
Citation Here
CHICAGO
Citation Here
Describe the Environmental Forces that Affect the Businesses a Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Discuss environmental factors, what they are, how they affect businesses, and how organizations can combat their impact
- Understand the different factors in the internal and external business environment that are likely to affect an organization's performance
- Understand how to use environmental factors to forecast future performance and how an organization can formulate strategies based on these factors
1.0 INTRODUCTION
Organizations face a number of issues in the form of internal and external environmental factors. The internal environment of a business consists of factors, conditions, and forces within the Business organization that affect its performance. The internal environment defines the scope of a business organization which entails the strengths and weaknesses of the organization.
This assignment will describe the environmental forces that affect the company's ability to serve its customers. Environmental forces are external factors that influence the business environment and can have a positive or negative impact on the company's performance. Some of the environmental forces that affect the company's ability to serve its customers are:
Economic factors:
These include the state of the economy, the level of income, the availability of credit, the inflation rate, the interest rate, and the exchange rate. Economic forces affect the demand for the company's products or services, the cost of production, and the profitability of the company. For example, a recession can reduce the purchasing power of customers and lower the demand for the company's products or services. On the other hand, a booming economy can increase the demand for the company's products or services and boost its sales and profits.
Social factors:
These include the values, beliefs, attitudes, preferences, lifestyles, and demographics of the society. Social forces affect the needs and wants of customers, their tastes and preferences, and their buying behavior. For example, an aging population can increase the demand for healthcare products or services. On the other hand, a shift in consumer preferences can reduce the demand for certain products or services.
Technological factors:
These include innovations, inventions, discoveries, and developments in science and technology. Technological forces affect the availability and quality of products or services, the efficiency and effectiveness of production and distribution processes, and the competitiveness of the company. For example, new technology can create new products or services that meet customer needs better or offer more value. On the other hand, new technology can also make existing products or services obsolete or less attractive.
Political factors
These include the laws, regulations, policies, and actions of governments and political parties. Political forces affect the legal and regulatory environment of the business and can create opportunities or threats for the company.
For example, a favorable tax policy can reduce the tax burden of the company and increase its profitability. On the other hand, an unfavorable trade policy can restrict the access of the company to foreign markets or increase its costs.
Cancel anytime…right from your account dashboard
NOT YET READY TO SUBSCRIBE? Try our other options below
Get a personalized on-demand assignment fast **
Purchase This Assignment On Demand
100% original custom written assignment
Zero plagiarism (checked via Copyscape)
Harvard/APA/AMA referencing
1000 words-(4 pages)
Price: £ 40.50
Services We are Offering
We are more than a free study and revision tool.
We also provide
on demand research and custom writing services.
123 Writing is the #1 exam revision and assignment study platform in the UK.
Get unlimited access to answered student essays, assignments, past exam questions and sample coursework written by qualified academic writers & tutors.
Our Standard subscription typically retails for £299.88 a year.
Today, you can join at 80% discount.
Here’s a full breakdown of everything you get as a Standard or Premium subscriber...
» Get access to our database of more than 5,770 answered premium strategy case studies
Get unlimited access to a robust database of premium business strategy case studies including more than 5,770 fully answered sample strategy frameworks and tools such as pestle, value chain, value matrix, porters five forces, Ansoff’s matrix, etc., authoritatively written and tailored for student revision, assignment preparation and transformative business research. Our strategy case studies are especially suited for university students wishing to apply strategic frameworks to real-world situations, company cases or simulations. All our strategy case studies come with teaching notes and learning outcomes, making them effective as coursework revision, and essay study help tools.
» Free access to past exam & assignment answers
Revise and prepare for exams and coursework with our fully answered exam notes and sample assignment papers. Furthermore, get quick on-demand answers to past exam question and assignment questions from our writers. Exam answer notes come with personalized lesson plans, and detailed study notes complete with detailed explanations of each answer, for maximum exam revision and assignment preparation. This tool is perfect for readers struggling with exam preparation & assignment study.
» Get extra assignment related help from our writers & tutors
Achieve high grades with a little extra assignment related support. Get extra help with your essays, assignments and general coursework, from our knowledgeable writers and tutors who will provide extra assistance when required for all academic related tasks including proofreading, grammar editing & correction, citations, referencing, etc. at no extra cost for standard and premium subscribers. All our standard and premium subscribers receive free proofreading services, which will include a check for punctuation, grammar, sentence formation, typographical errors, formatting, errors and other consistency issues (broadly).
» Get free assignment & essay writing help worth up to 7K words
Commission an on-demand essay, or assignment title from our knowledgeable writers and tutors on any subject matter. Get up to 7,000* words in on-demand custom assignment help from our writers who can assist with difficult topic in classical business literature. (* 7,000 free word credit exclusive to premium members).
» Fast & speedy answers to on-demand case solutions & assignment questions
Make use of your available free word credit (up to *7,000words) to commission on-demand custom case solutions, case study assignments and receive fast & speedy personalised answers. Receive timely and fast plagiarism-free answers to assignment questions or case solutions in as little as 1-2 business working days. Topics include Strategic Management, Marketing, Business Management, Economics, Operations Management, Organization Studies, International Business & Management, Human Resource Management and more. (* Exclusive to premium members).
» Get exclusive Q&A sessions with our subject matter writers
Ask our qualified, vetted and knowledgeable writers up to *12 essay, assignment and coursework related questions annually and receive accurate, clear, and detailed answers including step-by-step explanations briefs that are easy to follow. (*Exclusive to premium members).
» Free access to test bank questions & answers, study notes and practice quizzes
Test your knowledge on any subject with our quick quizzes and test banks for maximum retention after revision and studying. Test Bank contains questions in a variety of formats including multiple choice, true/false, short answer, and essay questions.
» Free access to video tutorials & study packs
Get free access to exclusive video tutorials to common subject topics. Our subject matter video tutorials, study notes and study packs have been created to help students learn and understand basic course module materials, as well as prepare students for their coursework assignment questions, essays and exams. Our video tutorials, study notes and study packs can be organized by topic, textbook or Question &Answer.
» Access to textbook chapter reviews and answer solutions
Get access to chapter reviews of popular business books, broken down in easy-to-understand simple concepts with simplified English. If English is not your first language, this service will make revising for essay assignments and exams as easy as 123 (Exclusive to premium members).
