Environmental Factors Affecting Company’s Performance

In this ever changing world, monitoring a company’s progress is a paramount requirement to ensure it delivers to its full capacity the value desired by customers. To do this, various environmental factors affecting its performance have to be put into consideration. The following paragraphs give a situational analysis and offer relevant insights about the external and internal forces that may affect a company and its offering.To begin with, external forces are forces outside the company that affect its performance. These factors include but are not limited to economic, technological, political, legal, social and cultural factors. Although all the environments will affect a company and its offering, political and social dynamics are driven by events on which the company’s management has minimal control. A country’s political decisions may result in the imposition of trade sanctions. As a result, a company risks reduced volumes in sales due to failure to export some of its goods. The economic environment may result in the rising of business partnerships, which means risks related to loss are mitigated. Once the company’s loses are in check, the probability of success is higher (Wright, (2009). Internal forces emanate from inside an organization that affects the company and its offering. Internal forces include financial resources, technological resources, employee capabilities, facilities and the strength of the brand being marketed. Brand strength refers to consumer perception about the manufacturer strength. As such, a positive perception translates into higher sales volume and market share and eventually a manufacturing company’s success. Strong employee capabilities mean that strong work ethics is maintained thorough contribution will be made in all sectors of the company. It is understood that small acts of sloppiness eventually add up (Wright, 2009).It is quite evident that both internal and external factors are significant in a company’s performance.ReferenceWright, R. (2009). Marketing: Origins, concepts and environment. London: International Thomson …