business organizations to have proper and reliable ways of dealing with external factors
Hello Mahesh Kumar Pasula,
It is of paramount importance for business organizations to have proper and reliable ways of dealing with external factors (Hrebiniak & Joyce, 2017). These external factors are hard to control since they cannot be predicted. However, some external factors, like technological changes, have positively impacted organizations. Through these new technologies, organizations have incorporated the best methods of doing their activities. Among the key areas that technology has affected organizations include communication, production, and sales management among many others. Another critical environmental factor that dramatically impacts organizations are economic factors. Economic factors like inflation, interest rates, consumer behaviour, among many others. These economic factors directly affect how the organization performs in the long run. The government is also a key stakeholder and factor when it comes to the external business environment. The government can make organizations go through a hard or easy time. By enforcing strict regulations, organizations find it hard to operate while full government support makes it easy for organizations to operate.
References
Hrebiniak, L., & Joyce, W. (2017). Organizational Search: Analysis of the Factors Affecting Search in Complex Organizations. SSRN Electronic Journal. doi: 10.2139/ssrn.314099