The reason that this has one of the biggest impacts on organisations is due to the fact that, in times of recession, most people have less money to spend. For this reason people will buy only what they consider are necessities and will save more in case of job loss etc. The companies that suffer the most will usually be those which are leisure related e.g. Eating out, hotels etc. Some organisations take advantage of recession and can maintain profitability or in fact become more profitable, usually these will be the budget stores such as Tesco, Primark, Asda, etc.
Another example of an external factor affecting organisations could be sickness. Companies lose a lot of money each year due to staff sickness, this could be thousands of pounds for medium sized businesses or even millions for large companies. This is a factor that is difficult to do anything about. Staff are entitled to a certain number of paid sick days each year, this number differs between companies, contacts and countries. Statistically, in the UK, women are more likely across all age groups to take days off sick and the most common reasons include back pain, depression and stress.
Another example of an external factor affecting organisations could be sickness. Companies lose a lot of money each year due to staff sickness, this could be thousands of pounds for medium sized businesses or even millions for large companies. This is a factor that is difficult to do anything about. Staff are entitled to a certain number of paid sick days each year, this number differs between companies, contacts and countries. Statistically, in the UK, women are more likely across all age groups to take days off sick and the most common reasons include back pain, depression and stress.
