From advances in technology to religious fundamentalism, business culture has come to be defined by events dictated by these forces, leaving companies with little choice but adapt to their dynamics.
Sometimes failure is due to the internal environment — the company's finances, personnel or equipment. Sometimes it's the environment surrounding the company. Knowing how internal and external environmental factors affect your company can help your business thrive.
The Economy In a bad economy, even a well-run business may not be able to survive. If customers lose their jobs or take jobs that can barely support them, they'll spend less on sports, recreation, gifts, luxury goods and new cars. High interest rates on credit cards can discourage customers from spending.
You can't control the economy, but understanding it can help you spot threats and opportunities. Staff Unless you're a one-person show, your employees are a major part of your company's internal environment.
Your employees have to be good at their jobs, whether it's writing code or selling products to strangers. Managers have to be good at handling lower-level employees and overseeing other parts of the internal environment.
Even if everyone's capable and talented, internal politics and conflicts can wreck a good company. Competition Unless your company is unique, you'll Global business environmental forces to deal with competition.
When you start your company, you fight against established, more experienced businesses in the same industry. After you establish yourself, you'll eventually have to face newer firms that try to slice away your customers.
Competition can make or break you — look at how many brick-and-mortar bookstores crashed and burned competing with Amazon.
Money Even in a great economy, lack of money can determine whether your company survives or dies. When your cash resources are too limited, it affects the number of people you can hire, the quality of your equipment, and the amount of advertising you can buy.
If you're flush with cash, you have a lot more flexibility to grow and expand your business or endure an economic downturn.
Politics Changes in government policy can have a huge effect on your business. The tobacco industry is a classic example. Since the s, cigarette companies have been required to place warning labels on their products, and they lost the right to advertise on television.
Smokers have fewer and fewer places they can smoke legally. The percentage of Americans who smoke has dropped by more than half, with a corresponding effect on industry revenues.
Company Culture Your internal culture consists of the values, attitudes and priorities that your employees live by.
A cutthroat culture where every employee competes with one another creates a different environment from a company that emphasizes collaboration and teamwork. Typically, company culture flows from the top down. Your staff will infer your values based on the type of people you hire, fire and promote.
Let them see the values you want your culture to embody. Customers and Suppliers Next to your employees, your customers and suppliers may be the most important people you deal with. Suppliers have a huge impact on your costs. The clout of any given supplier depends on scarcity: If you can't buy anywhere else, your negotiating room is limited.
The power of your customers depends on how fierce the competition for their dollars is, how good your products are, and whether your advertising makes customers want to buy from you, among other things.Weather and other environmental forces Environmental issues relate to weather, natural disasters, climate change, pollution, and anything else that could impact business.
A hurricane or tornado can completely wipe out businesses. Global Business Environment Forces Business environment is the total situation of all the factors or forces surrounding and influencing operation and development of a business firm r company.
Global Forces shaping the future of Business and Society Abstract To answer the question of the factors that will shape the future of work in the current century there were 5 major factors known as global forces.
A business concept that looks perfect on paper may prove imperfect in the real world. Sometimes failure is due to the internal environment – the company's finances, personnel or equipment. There are various environmental factors which can impact the businesses in an economy.
These environmental factors can be categorized into external and internal environment of the businesses. Global business environment can be impacted by many factors that cross country borders.
Environmental factors can greatly affect global business in all corners of the world. Natural disasters, population growth, and pollution are problem areas that affect all countries.