The external environment of a company includes all the factors that affect the organization but are not under the control of the organization. Normally the external Environment is divided into two parts which are:
- External Macro Environment
- External Micro Environment
The External Macro Environment influences the working of all the companies in an industry. These factors essentially belong to the environment of a country or a region. They can not be controlled or influenced by an organization or even a number of organizations. The various factors that comprise the external Macro-Environment are as follows:
- Political/Legal Factors
- Economic Factors
- Socio/Cultural Factors
- Technological Factors
- Demographics
- Competition in the industry.