How External Factors Affect Organisation?


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Ebony Nash Profile
Ebony Nash answered
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.
amber Jhon Profile
amber Jhon answered
There are many external factors which may impact the organizations. The major factor is the economy in which the organization operates. The positive aspects of the economy positively affect the organization while negative aspects may negatively impact the organization. The second factor is the government or rules and regulations. Change in the regulations also impact the decisions of the company. Political stability also has a huge impact on the operations of the organizations. Suppliers availability can positively or negatively affect the company. Organizations rely both on the internal resources like finance, human resource etc as well as on external resources like material and natural resources. The availability of resources can also impact the core business of the companies. Moreover, the overall environment and culture also have a huge impact on the organizations.

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