Impact of External Factors on Organization

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Business is that aspect which deals upon selling and
buying of products which is been sold by an
organization within the market. Business covers various
kind elements which help in circulating of goods and
services in more effective manner. These elements also
impact tendency of business and various elements
related to it. Business environment is the process by
which an organization is able to work in more
organized manner with discipline and order. Business
environment is one of the most important factor which
affects growth of business. Also such environment
make goals and objectives set by an organization
achieved in more effective manner. Scope of this
business environment is wider since it has tendency to
impact functioning of business in more effective
manner. The organization that has been selected for the
poster is Sainsbury which is an UK based retailers
selling products of daily use. Things to be covered are
based upon internal and external factors of business.
External factors these are those factors which makes influences,
circumstances and situation existing within a business to be controlled
in effective manner. Such factors have been impacting working of
business from outside. These factors help in functioning of an
organization in more effective manner through marking out those
elements which directly impacts its success rate within market. These
factors create certain circumstances and situations which affects
external working of organization (Gaganis, Pasiouras and Voulgari,
2019).
INTERNAL AND EXTERNAL FACTORS IMPACT ON ORGANIZATION
INTRODUCTION EXNTERNAL FACTORS
Political factors: These are those factors
which includes policies formed by
government in relation to corporate sectors
which impacts various kinds of business
activities within a country. In political factors
majorly policies related to tax is been
observed by an organization. If policies
formed by government are rigid then it
impacts production capacity of an
organization. In case of Sainsbury Without
any doubt the biggest political factor that
affects Sainsbury’s currently is the imminent
Brexit. It will mean that England will no
longer remain a part of the European Union,
External factors also makes an organization
develop innovative techniques which makes
strategic goals to be achieved in more effective
manner. External factors have been making an
organization attain stability within market. It is
considered as key area of planning taking place
within an organization.
Then stakeholder analysis is been affected which directly impacts
decision making of an organization which leads upon making strategic
goal achieved. These factors influence various situations and helps
management of a business done within proper structure. Stakeholders
make decision only after analyzing these factors over investment to be
done within a business. In this large number of external factors can
have a direct impact on the ability of your business to achieve its
strategic objectives. In order to make sure that these factors is been
analyzed in proper manner PESTLE analysis is been done. PESTLE
analysis is a tool which is been used for analyzing of those factors
which impacts business externally. These factors are political,
economical, social, technological, legal and environmental. This
analysis helps Sainsbury over understanding about the market in more
effective manner. It has further helped in understanding of market