Five Major Factors: Five Different Types Of External Forces

FIVE MAJOR TYPES OF EXTERNAL FORCES
ECONOMICS FORCES:
Economic factors have a direct impact on the potential attractiveness of various strategies. This key external factors can over time and by industry. Relationships with suppliers or distributors are often critical success factor.Other variables commonly used include market share, competing products, world economies,foreign affiliates, proprietary and key account advantages, price competitiveness, technological advancements, population shifts, interest rates, and pollution For example, as interest rates rise, then funds needed for capital expansion become more costly or unavailable. Also, as interest rates rise, discretionary income declines, and the demand for discretionary goods falls.

Natural environment is identifies the number and size distribution of companies and the nature of barriers to entry and the extent of product differentiate .Mainly both the social and demographic forces are more important in the external forces as an external audits as the second part or the second major type .aging population ,less white and more black. widening gap between rich and poor the gap between the people who have money and wealth and upper class people and the poor who has the lower limit and no food nor wealth above the poverty line. united states facts that there is differences in religions and color they are racists In 2035=18.5% population >65 and no ethnic or racial majority

Many firms now have a chief information officer (CIO) and a chief technology officer (CTO) who work together to ensure that information needed to formulate ,implement and evaluate strategies is available where and when it is needed .This has unleashed a process that has been called “Perennial gale creative destruction” technological change can make established products obsolete overnight and simultaneously create host of new product possibilities .Thus. technological change is both creative and destructive –both opportunity and a threat .Advertisers now have more choices due to the resulting increase in rivalry, enabling them to bargain down the prices that they must pay to media companies. The internet has changed the very nature of opportunities and threats by; altering the life cycles of product ,increasing the speed of distribution, creating new products and services, erasing limitations of traditional geographic markets ,changing the historical trade-off between production standardization and flexibility .the advancements can create new markets, render existing