The external environment is the "external context within which an organisation exists and operates."1 One of the ways in which the external environment can be analysed is by assessing the impact of politics, the economy, social factors and technological factors (P.E.S.T. analysis).
The organisations are affected either generally or immediately by the external environment. The immediate factors, also referred to as the operational environment, include aspects such as suppliers, financial institutions, customers and labour markets.
The general features, or the contextual environment, comprise of the economic, political, legal and technological influences, for example.
The political environment has an affect on businesses because they can influence the market structure and behaviour. The market structure is the share of a market particular companies have. The government have a regulation that states that no company can gain a bigger market share than twenty five percent, other......
Join Now or Login to view the rest of this paper.
Approximate Word Count: 1507
Approximate Pages: 6 (260 words per double-spaced page) |