Question

Can managers of an industry or firm control the external forces that affect their business? Or are they only able to react to the changes that occur and external forces are beyond their control?

Answer 1

No,managers of a industry do not control the external factors that affect the business.

Explanation-

Externl factors are those factors that are beyound the control of a single individual and generally affect the economy or industry as a whole.

Ex-Change in government policies,interest rates e.t.c

At their best manegers try to make changes in their internal environment i.e things that are under their control throught proper planning,estimating future changes in advance e.t.c in order to prepare themselves for future changesThis is the best that managers can do about external forces of business.