Changes in the global business environment (the external factors) that organizations need to address
It can be extremely crucial for organizational leaders to understand the environment before they commence business. External factors cannot be controlled by an organization. They include political conditions, government regulations, accounting agencies, social environment and technological environment. These external factors have an impact on an organization’s operations (Patrick Dowling, 2008, p. 78). Knowledge and clear understanding of the environment can be crucial for any organization that aims at being successful.
Firstly, changes in market conditions create changes internally as organizations try to adjust. For example, in the past few years, the airline industry in the US underwent ...