External Influences on Two Chosen Businesses

External influence on two selected companies The external influence of IKEA is a non-business factor that can influence the business and can not be controlled. There are many competitors competing near the IKEA, but this has no major impact on them as they continue to compete in price, quality, availability and product range. They have many different competitors selling the same type of products; their main competitors are B & Q, Homebase, Argos, DFS and Toys R US.

A business organization is an open system that is affected by the environment and affects the environment. The business environment consists of two elements: an internal environment and an external environment. The former refers to various systems within an organization such as technology, structure, process, personnel affairs. Since all these aspects form the subject of this course and are described in various courses, the internal environment is not worthy of detailed analysis. Therefore, this course will focus on important variables of the external environment related to the successful operation and survival of the project.

The external environment consists of conditions, environments, and operational impact outside the scope of direct management of impact management. External environmental conditions include (1) company industry, (2) business environment, (3) regulatory and legal considerations. Industry analysis establishes an overall perspective to evaluate the work of the company. Events affecting the industry often affect industry companies. Understanding the comparison of companies with the industry may refer to abnormalities. For example, if the industry's total sales decline by 20%, the company's sales increased by 10%, which indicates that further investigation is necessary.

The business environment of a company or industry includes all external influences that affect its function, decision making, and performance. When a range of amounts and external influences are given, how do companies expect analysis, not to mention environmental condition monitoring? This information organization can be done using some form of system or framework. Environmental impact can be classified into political, economic, social and technical factors by PEST analysis (Grant 2005, p. 68). The impact on the environment can be classified according to the micro environment or the mission environment and can be distinguished from the broader influence by forming the macro environment (Grant 2005, p. 68).