External And External Factors Of The International Business Environment

The external environment or external audit are the factors outside the company that affect the company's ability to function. (Writer, L. G. 2011) It is made up of three components. The first being the general environment. Legal, political, social, technology, environmental, and economic factors are all included in the general environment.

External environment consists of forces that directly or indirectly influence organization’s business activities. The actors and forces outside marketing that affect management’s ability to build and maintain successful relationship with target customers.

* Customers – Customers is external stakeholders for all organization or firm. Without any customers a company cannot be process. Customers have power to choose their necessary service and products. Seller and marketing cannot force customer to purchase product and service. Example, insurance customers have many choices when they need to purchase insurance. That mean consumers can buy insurance in different company like Tesco Bank, Lloyd Bank, HSBC and other company.

Suppliers who want the business to continue to buy their products. The supplier wants to make profit.

A business does not operate in a vacuum.It has to act and react to what happens outside the factory. These factors that happened outside the business are known as external factors or influences.

Discrimination is the separation of society; it has always been apart of history, especially in the United States and is still going on now. History has shown that white men has always been the superior race in the past and has had more privileges compared to other ethnic groups. In the mid 1900s white Americans were the superior race and black Americans were treated brutally and didn’t have the same rights. Even today, white Americans are known to have high social status compared to other races. There has always been social inequality and white Americans has always had the upper hand. In the book To Kill a Mockingbird by Harper Lee it demonstrates how skin color affected the way people were judged and what rights they had. It shows the inequality

| The customers would be influenced because if the company are financially struggling the customers are there only hope to stay profiting. If the company was to go bust it means customers will no longer be able to shop there. The customers would be an external stakeholder, they can get information by advertisements and even check their annual report on the businesses website.

In this term of our discussion we’re talking about business environment. It’s like an overview of the whole business environment. Simply environment of a business means the external forces including the business decisions. They can be forces of economic, social, political and technological factors.

External environmental factors are the macro environment affecting a business; they are factors outside the company and which they have no control over (Kotler & Armstrong, n.d.) these external factors bring about impacts to the company thus a company should always be prepared to react.

Business environment consists of external and internal factors. Internal environmental factors are events that occur within an organization. An organization's internal environment is composed of the elements within the organization, including current employees, management, and especially corporate culture (that defines employee behaviour). Although some elements affect the organization as a whole, others affect only the manager.

An analysis of the external environment includes the factors in a business’s external environment about a business's industry, competition, and political and social environments, and affects the firm’s strategy (Aaker, 2001).

Technological - how the rapid pace of change in production processes and product innovation affect a business.

     A businesses environment creates many opportunities as well as problems for prospering businesses. The environment determines what a business can do by shaping and channeling its development. Businesses function within an environment by allowing entrepreneurs to raise capital and create profits freely. The supply of money available within a business as well as the economic stability through times of growth and recession have strong effects on businesses. Not only is the physical environment, including natural resources, pollution and energy as discussed previously, important, but many other

External environment refers to external aspects of the surroundings of business enterprise, which have influence on the functioning of business. The external environment can provide both facilitating and inhibiting influences on organizational performance. Key dimension of the external environment principally consists of a micro environment and a macro environment.

As the name suggests, “internal” business environment refers to internal factors and resources that affect the running of the business. This primarily includes the workforce where the employees play a vital role in affecting company’s performance. If a company has well trained or motivated employees, that company is likely to get good output from them. However, if the same company recruits unmotivated employees who do not perform well or dig in their heels when a new plan arrived, this will affect that company’s production levels and ultimately hinder its profitability. Another factor to consider is all the capabilities that a company possesses. The tool used to monitor them is the resource based