Top Five Environmental Factors for Businesses

1. The first environmental factor I believe is the most important in helping an organization achieve optimal function is an external one: Where are its economic resources going to come from? Management has to determine and plan where the money is going to come from in order to keep the company operating at a profit. The backbone of a company is profit and without the necessary economic resources an organization will eventually cease to exist. Whether the money is coming from the private sector, governmental agencies, customers, fund-raisers, or investments the management teams need to have an eye on the economy of the company.

2. The second environmental factor is also an external one and this is who makes up your customer base and what they want. Extensive research is required to find out who the target audience will be to sell to. If you do not have a plan in place to attract your potential clientele and good products to sell, the customer will go to your competitors. Much time and advertising has gone into McDonald's quest to keep their customers coming back again and again by keeping the consumers favorites on the menu. They also have developed new products to entice them to return. McDonald's also has added "healthier" choices to their money to appeal to more health conscious individuals.

3. The third environmental factor, also external is: Where are you going to buy the necessary supplies, materials, equipment, and house your organization? Management will have to ensure they are buying quality products at a reasonable price. This will then result in savings passed on to the customers. As we have seen in recent weeks, the pet industry tried to cut their costs by buying their ingredients at a lower cost from a supplier that did not have the well-being of their customers taken into account. The result was tragic, as a product was passed on to the consumer with deadly results. It is also very important to determine where the best location for company will be so that you are easily accessible to your clientele. Careful consideration should also be given to the purchase of equipment needed to function at maximum capacity and efficiency.

4. The fourth environmental factor is an internal one and very important as well. Your company cannot run without employees! Management has to have a system in place for hiring, firing, and of course all the policies, regulations, and procedures. All employees need to be aware of their job duties, what is expected of them, and the rules that govern the organization. It provides a guide to help ensure that everyone works together efficiently. All employees should take pride in what they do and see how the company benefits from each individual working together to form the whole picture.

5. The fifth and final environmental factor I believe is important is another internal one: Goal setting and implementing the necessary technology to obtain those goals. The future goals of a company need to be realistic and attainable. Everyone in the company should be striving to achieve these goals and of course the latest technology and equipment is needed to provide a product that the consumer will buy.