What Are The External Factors Of Business Organization?


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There are a number of external factors of an environment that affect the working of a business organization. Some of these external factors are controllable by the organization itself, however, most of them are completely uncontrollable by the organization.

There are two types of external factors of a business organization. I.e
- External Micro-environment
- External Macro-environment

External Macro-environment includes all those factors that are completely beyond the control of an organization. Such factors belong to the country as a whole. These are:
- Political and Legal Factors
- Economic factors
- Social and Cultural Factors
- Technology
- Competition
- Demographics of the population

On the other hand, External Micro- environment includes all those factors that are partially controllable by the organization. These are:

- Suppliers
- Agents
- Transporters
- Distributors
- Wholesalers
- Warehouse
- Retailers
- Market

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