environmental factors that affect business organizations
Hello Sravani Gude,
The various environmental factors that affect business organizations include economic factors, technology, government policies, among many others (Farrell, 2018). Today theses environmental factors are becoming rapid and are consequently impacting organizations. Through the new and emerging technologies business organizations have adopted new and improved methods of doing their activities. Additionally, organizations have obtained automated and reliable ways of coordinating all their operations smoothly. In a similar vein, these emerging technologies have also catalyzed the growth of competition. The second environmental factor affecting organizations are economic factors. Changes in the economy, like inflation and change in economic policies, greatly affects organizations. In the case of inflation prices of products goes up, and this reduces the buying power of customers.The other factor that affects organizations is government policies and regulations. When the government sets strict business regulations organizations to find it hard to operate, and this puts them at risk of closing down. Additionally, the government can also interfere with how organizations operate through giving special powers and rights to specific companies resulting in monopolies.
References
Farrell, K. (2018). Book Review: Complexity, Organizations, and Change. Organization & Environment, 18(1), 124-127. doi: 10.1177/1086026604273668