1.5 The External
Environment
The External Environment Factors

They are the factors outside the
business, which can seriously
impact its operations.

There are many models to analyze
the external factors of a company
namely PEST, PESTLE, and
STEEPLE
External Factors affecting business operations:

Social: Related to the demographic and cultural changes

Technological change: The inventions of new machines or operational
methods that will affect the company's operations objective

Economic: related to the economic situation that will affect the company's
operations and change its tactical and operational values

Ethical: changes in ethical values that will affect the company's operational
and tactical objectives

Political: government measures/regulations that will affect the company's
operational and tactical objectives

Legal: related to the legislative system that will affect the company's
operational objectives:

Ecological: the measures that are related to the environment that will affect
the business tactical and operations strategies
Case Analysis