Question

Which external forces impact the organisation by forcing them to continually adapt and modify their business models? Defend your choice.

Answer 1

External Force:

The external environment is said to be the external factors and forces which would influence the business operation of the organization.

The below external forces the companies can adapt and manage to modify their business models:

1. Increasing on technological aspects, improving on the economic condition etc plays a major opportunity for setting strategy where those determine the growth of the company.

2. The competitors and the external source could be a threat for setting a strategy, based on that the company suitability and competiveness can be determined.

3. Regulating the laws and legal activities is a major factor the company needs to consider in adapting and managing external environment. The government legal system helps the company to sustain longer in its market environment.

4. The weather conditions that would impact towards the company growth and development. So that the company should come up with the necessity needs to control on the same to continue the business in the market.

5. The recycling and the waste management would be factor where the company should carefully evaluate as that should not affect the external environment.

6. The pollution should be considered as a factor because the company should not harm its environment by producing products and service which is not good for the external environment.