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External factors affecting business decisions - Key takeaways Political factors. Economic factors. Social factors. Technological factors. Environmental factors. Competitive factors.
The common external environment factors that businesses should consider are political, economic, social and cultural, legal, technological, and environmental/natural.
It includes the organizations culture, values, attitudes, communication structure, leadership style, management systems, and employee morale. It also includes the organizations resources, such as its financial resources, physical resources, and human resources.
The six main external factors can be remembered using the PESTEL acronym, which stands for political, economic, sociocultural, technology, environment, and legal factors. Political factors include changes in regulations resulting from who is currently holding government positions.
Elements of the external environment include the economy, changes in technology, regulation, competition, socio-economic factors, and others. Several areas within the organization influence HR activities, including top management, organizational strategy and culture, technology, structure, and size.
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Internal environmental factors are events that occur within an organization. External environmental factors are events that take place outside of the organization and are harder to predict and control.

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