External environment in business

The external environment of a business refers to the factors that are beyond the control of the business, but which affect its operations and success. This includes factors such as economic conditions, technological advancements, political and legal frameworks, social and cultural factors, and natural resources.

Internal environment refers to the factors that are within the control of the business, such as its organizational structure, management style, and employees.

Micro environment refers to the immediate environment of the business, including its suppliers, customers, competitors, and other stakeholders.

Macro environment, on the other hand, refers to the broader environment of the business, including economic, political, technological, and social factors that affect the business at a larger level.

Reasons why external environment is beyond the control of business:

1. Economic conditions: The economic conditions of a country or region are beyond the control of individual businesses. Factors such as inflation, exchange rates, and interest rates can have a significant impact on the success of a business.

2. Technological advancements: Advancements in technology can create new opportunities for businesses, but they are beyond the control of individual businesses. For example, the rise of the internet and social media has created new opportunities for businesses to reach customers, but it is not something that businesses can control.

3. Political and legal frameworks: Political and legal frameworks are established by governments and are beyond the control of individual businesses. Changes in laws and regulations can have a significant impact on the operations and success of a business.

4. Social and cultural factors: Social and cultural factors, such as changes in consumer preferences and attitudes, are beyond the control of individual businesses. For example, the rise of sustainable and ethical consumerism has created new challenges for businesses to meet consumer demands.

5. Natural resources: Natural resources, such as water and energy, are limited and are beyond the control of individual businesses. Businesses must adapt to the availability and cost of natural resources in order to operate successfully.