Business External Environment Analysis: Factors and Impact

This report examines the impact of external factors on business operations, focusing on how political and economic factors influence business strategies. The analysis includes a case study of a bakery, exploring how external elements such as political factors can affect business decisions. The report also discusses the importance of internal factors and how businesses can manage them. References are provided to support the analysis of how businesses respond to external factors. The report highlights the significance of understanding and adapting to external factors to ensure business success. The report offers insights into strategic planning and decision-making in response to external environmental changes.

Introduction
Internal as well as external factors are present in outside and
inside of business which create impact on business and its
operation in market place. It is important for organisation to
identify these factors as these allowed businesses to
formulates strategies to overcome of impact of these factors.
Business In Practice
Impact on external
environment
Business create various impact on their external
environment as these impacts can be positive as well as
negative. Impact of operation of Bakery Bagietka Ltd on
external environment of business are mentioned below:
Political: Business creates impact on political factors of
country in many ways. As for running of their business
they export and impact various products and service.
External factors
External factors are those factors which are present outside
business and can seriously impact on business. These factors
can create impact on Bakery Bagietka Ltd which is
mentioned below:
Political: Political factors are those factors which includes
trade restriction and barriers impose by government on
business.
References
Direction, S., 2020. SMEs and strategy development: The impact of leadership and internal and external factors.
Jeon, S.H., 2017. Where to report wrongdoings? Exploring the determinants of internal versus external
whistleblowing. International Review of Public Administration, 22(2), pp.153-171.
Le Nguyen, H., Larimo, J. and Wang, Y., 2019. Control, innovation and international joint venture performance: The
moderating role of internal and external environments. International Business Review, 28(6), p.101591.
Internal factors
Internal factors are those factors which are present inside
business and create impact on business in many ways but
impact of these factors on business is limited as management
can made changes in order to reduce impact of these change.