This essay addresses the various internal as well as external factors which influence the company' s environment, their impact on decision making and factors affecting price of products. MAIN BODY TASK 1 External factors Political factors The main political factors include political stability of a country, tax policies, labour laws, government policies etc. The negative impact of this on organization is that if the unemployment rates are high then it would be difficult for companies to retain and attract talented employees (Boone and et.al.