31 Aug External Factors = Internal Pressure
Select one of the external factors discussed in the text that influences business. We can organize the external forces that affect business into the following six categories:
- Economic environment
- Legal environment
- Competitive environment
- Technological environment
- Social environment
- Global environment
Choose a company that is being significantly influenced by the factor you selected. For example, there has been a great deal of consumer concern about the use of GMOs in food, and Monsanto has been on the receiving end of a great deal of criticism. See the article “Monsanto in the middle of upcoming congressional fight over GMO labeling”
Using the research you performed in the preparation steps, craft your initial discussion posting. In this initial post you will:
- Provide a brief background on the company and the external factor you selected.
- Explain how this external factor is currently influencing the internal functional areas of the business/company. In other words, what short-term changes, actions, or decisions are needing to be made within the functional, internal areas of the company as a result of the external factor?
- How do you think the company will address this external factor over the long term?
- For example, if you selected the Ronald McDonald House and the external factor of corporate citizenship, you might surmise that the slow economy and high unemployment will put additional pressure on McDonald’s to provide more assistance to families and people in need. However, in a slow economy people are less likely to make donations. They are being asked to do more but may have less to do it with. In the long term, if donations do not increase and demand remains high, the company may have to look for other means besides donations to support their mission. Marketing may need to increase, and the finance department may start to look for ways to cut costs.
