External factors that I have no control over that will affect my business
PESTLE Analysis.
Starting a business is a way of creating wealth and certainty in the future. Most of the world’s wealthiest individuals are not employees but business people who come up with ideas and actualized them, taking advantage of the strengths and opportunities offered to them. Employment is suitable, but starting a business is better since you have all the power to start what you desire. In the future, I want to own a business to put into action all the skills that I am learning. However, before starting a business, I require capital, location, and business plan that I can control. There are external factors that I have no control over that will affect my business, and it will be my responsibility to ensure I align my business to fit in well. The factors include technology
- Technology
The world is a global village, and anything happening in one location occurs in another area. Technology offers the best opportunities because it is opening up the world to ease doing business and the development of quality goods. However, lack of technology adoption poses the biggest failure in business because of high competition. Technology covers significant areas and can affect different scenarios that include:
- Quality of goods
Technology has revolutionized the quality of goods produced. Many businesses are adopting technology to come up with goods that are superior with the inclusion of technology related features. The features add value to the products targeting the changing consumer preferences. For example, in the motor vehicle industry, manufacturers are adding self-drive mode facilitated by technology to ensure the vehicles are superior.
- Automation
In the past decades, human labor was crucial to production in many organizations. Then technology chipped in, and it is easy now for organizations to equip equipment for production processes. Many organizations have computerized their operations and only require few individuals to control the processes. The adoption of automation results in mass production, quality production, and timely production.
- Marketing
Way before technology chipped in, many firms found it hard to sell and distribute their goods as per consumer preferences. The introduction of the internet is ensuring that firms distribute their resources all over the world efficiently. Nowadays, it only requires internet connectivity to do business, and online business is taking over in sales and marketing. Many consumers adopt systems that will facilitate online trade. In the future, I will have to consider ways to ensure I adapt to technology to help in the marketing of my products.
- Environmental factors
Business must be conducted in the environment we live in, and due to changing environmental factors, many companies must find ways to fit in the physical environment. Factors to consider in the environment include:
- Climate and weather
The weather is changing, affecting the environment. The patterns that we are used to are now changing, and it is not easy to predict. Weather patterns like rainfall are hard to predict, which can affect the business I aspire to open. If I want to open a firm specializing in farming, it will require that I check environmental factors to identify when and where to start it.
- Pollution
The primary cause of climate change is due to pollution, which affecting the ozone layer. The government is coming up with new rules governing the production industry to mitigate increased pollution. Investing in ecofriendly products line renewable energy presents an opportunity for growth because consumers also are aware of the changing weather conditions and prefer products that will satisfy their needs while also protecting the environment.
- Political factors
Government policies and political conditions affect many businesses in the world and are different in different locations. These factors include:
- Political stability
The best place for starting a business in an environment with political stability. Areas with political instability cause fear and risk to a company. An example, Iraq in the past has faced a continuous crisis, and opening a business in the country posses a high risk of survival and success.
- Government policies
Most government has rules and regulations that must be followed, and before starting a business, it is considered moral to check if you satisfy the policies. For example, some governments prohibit foreign investors from encouraging local industries, and from starting in such countries, it may require agreeing with citizens. Some governments also prioritize investment in some areas of business. For example, most governments are encouraging investment in the renewable energy industry, and it is an area with many opportunities.
Taking advantage of the opportunities offered by the factors above remains a crucial ingredient for future success. my future business will depend on the external factors because an individual has less control over the external business environment.