Title: External Environmental Factors in Business | Bizfluent
Headings: External Environmental Factors in Business
External Environmental Factors in Business
Economic
Consumer Needs
Political and Legal
Competition

Content: When the economy is doing poorly, incomes are down and unemployment is high. A business must be very careful about how it prices its products and services and exercise caution in terms of expenses. Consumer Needs
Changes in consumer attitudes and demand can also impact business. For example, over the last few decades there has been an increasing demand for environmentally friendly products. Companies have had to respond to this demand in terms of what kind of products they produce, how those products are packaged and how and where they produce those products. Changes in consumers habits, lifestyles, tastes and popular fashion must all be taken into account in business. 00:00
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Political and Legal
The external environment of a business is frequently impacted by the political and legal climate. Things like government regulation, sales tax, corporate taxes and import duties can all have an impact on a company's bottom line. Additionally environmental and health regulations can force changes in how a company does business. In some cases certain products or parts of those products can be banned or found to be unsafe which can force a recall of products.