Factors affecting business

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Factors affecting business
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There are many factors affecting business described in literature and examined during strategic management process. These are phenomena, processes, and institutions shaping interchangeable relations. Main factors could be divided to main groups:

Managers use internal analysis or external analysis to determine those factors and its influence on organization.

External factors[edit]

External factor is everything that outside the organization can influence it. The boundary dividing the organization from its external environment is not always clear and clearly defined. For example, shareholders are in a sense part of the enterprise, but in a different perspective they are rather an element of its environment.

We can distinguish following factors:

Internal factors[edit]

Internals factors consists of conditions and forces inside the organization. \

We can distinguish following factors:

Method of analysis of the external factors[edit]

A tool used to analysis (evaluate) external factors:

  • Analysis PEST
  • Delphi method

Analysis PEST[edit]

Is a method used to study macro-environment - the macroeconomic environment of an enterprise. In other words, it is called general segmentation of the environment. Defines the basic spheres of the environment, i.e. areas that have a key impact on the functioning of the organization. It also sets out the future strategy of the organization through in-depth analysis.

The starting point is the combination of the basic external factors of the organization (hence its name):

  • Political
  • Economic
  • Social-cultural,
  • Technological -

In some types of analysis, there is also an independent environmental factor - Environment (we call PEEST then). Sometimes we meet with the legal environment distinction (the name of the analysis - PESTEL).

Delphi method[edit]

Belongs to the group of heuristic methods in which the knowledge, experience and opinions of experts in a given field are used to make decisions. It is used to determine the probability or timing of future events. The forecast is obtained by conducting a series of surveys among experts.

The name of the Delphi method comes from the name of the ancient Greek city of Delphi, where in the temple of Apollo, with the help of a priestess called Pytia, the future was foretold.

Method of analysis of the internal factors[edit]

References[edit]

Footnotes[edit]

  1. Porter M.

Author: Natalia Borowiec