Introduction

There are a wide range of external forces that affect an organisation. Companies should be vigilant to identify and critically analyse the impact of the external forces and changes that might affect the business. In addition, organisations should also formulate plans to craft strategies to manage the situation.

The External forces that affect an organisation

1. There has been significant innovation and development to revolve the technological environment. Newer and advanced forms of technologies are coming in the business and this affect the business environment. This is an important external force that affect an organisation.
2. Because of globalization and free trade among the countries, competitors are coming in the countries and making it difficult to make profits. This has affected companies significantly to change their business model and strategies.
3. Due to the impact of globalization and impact from other countries, the tests and preferences of the customers are continuously changing. This is also a significant external force that affect the business.
4. Since the competitors are continuously evolving and offering new services and improved products, employees tend to switch to other organizations. This can increase the rate of employee turnover in an organisation.
5. There have been changes in the rules and regulations in the business environment, as a result the companies need to adapt with the changing environment. Such frequent changes create significant threat to any business operating in the global scale.
6. Due to the changes in the technological side of a business, there has been significant pressure to adapt the employees and workforce with the new technology, thus training and development of the workforce is a vital issue.
7. There has been new laws around the world regarding the employee rights, minimum salary, workplace safety; a business organization must respond accordingly with these factors.
8. There have been emerging number of suppliers which are relatively efficient, business organizations need to adopt these efficient sources to stay competitive in the business.
9. The economic condition of the countries are not fixed for all the time and thus the companies should understand the economies condition of that country

Conclusion

The factors and the influences indicated in the above portion of the assignment illustrates that these factors are the external factors and a company must be capable to manage these changes. Thus, organization becomes able to properly react with the changing environment. All of the changes discussed above are continuously happening in any time and in any organization. Managers of an organization must be able to manage these changes so that the organization can respond positively to the external environment.