External Factors and Their Impact on

Business Environment
Introduction

 Welcome the audience and introduce the topic of external factors and their impact on the
business environment.

 Explain that understanding and managing external factors is crucial for business success
and sustainability.
External Factors Affecting Business
Organizations

 Politics

 Economic

 Social

 Technological

 Legal

 Environmental
Reasons for carrying out a PESTLE analysis by
business organizations

 To identify external opportunities and threats

 To inform strategic decision-making

 To anticipate changes in the external environment

 To assess market potential

 To evaluate the impact of government policies

 To identify potential risks

Three-step crisis management procedure
Factors contribute to environmental damage

 Air pollution

 Deforestation

 Climate change

 Water pollution

 Land degradation

 Plastic pollution

 Overuse of natural resources

Factors that contribute to minimising
environmental damage

 Energy consumption

 Conserving natural resources

 Reducing waste and emissions

 Using eco-friendly products and technologies

 Implementing sustainable practices

 Recycling

 Adopting sustainable building practices

Impact of Environmental Neglect on Business
Profitability and Reputation

 Financial costs

 Damage to the brand image

 Loss of customer loyalty

 Increased stakeholder scrutiny

 Supply chain disruptions

Conclusion

 External factors significantly impact business organizations.

 Political, economic, social, technological, legal, and environmental factors influence businesses.
 Conducting a PESTLE analysis provides insights into market trends and customer behavior.
 Factors contributing to environmental damage need to be minimized through sustainable
practices.
 Neglecting environmental concerns can have financial, reputational, and operational
consequences.
 Adapting to external factors positions organizations for success in a dynamic business
environment.