External factors of a company

It is important to mention that they are factors that are outside the control of the company and that may be constantly changing.All these factors can positively or negatively affect the development and execution of projects.

In addition, both internal and external factors must be considered in project management.However, external factors need to be treated with greater attention.This, because they exercise greater limitations in the realization of the project, since they are difficult to control and can be constantly modified.

The external factors that can affect the achievement of a company's projects are:

The social and cultural aspect can influence the achievement of a project, since the social and cultural reflect the way of thinking and acting of people.This especially affects the way of administering human resources, in the definition of corporate actions and decisions on strategies to take regarding products and markets.The social and cultural marks trends that the company must follow to maintain acceptance and market approval.

Second, every company operates within the legal system of the country or the countries where it is located and competes.Therefore, the policies applied by the government can act as limitations for a project when they affect negatively.

While, when they have a positive effect, they provide opportunities for the company that carries out a project.The political system through government can generate business opportunities for a company.This, through fiscal and/or economic policies and national and international trade regulations.

Third, it is important to analyze the market where the project and the market for which the project is developed is developed.Sometimes it can be the same market and sometimes it can be separated.

The most important aspects of the market are:

a. Los competidores

Competitors are all companies that participate in a market offering goods and services.All this, with the purpose of winning customers and expanding their market share.Without a doubt, small and large companies can be competitors

Obviously, competitors are interested in knowing how they use their strategies, especially prices, introduction of new products and communication.This can help achieve a competitive advantage over them.

b. Los proveedores

Suppliers provide the company with the necessary resources to carry out their production process.Suppliers can be:

c. Los clientes

Naturally, customers are the people or organizations that buy the goods and services produced by the company.Customers are the fundamental piece for a company to survive.Therefore, it should be considered that customer service is decisive to succeed in any project.

Fourth, we find industry standards.A standard is the model or pattern that must be followed or taken as a reference for the realization of something.When competing in an industry that follows certain standards, the actions are standardized, that is, they must be followed to the letter as documented.

At a general level, many companies are certified with ISO (International Organization for Standarization) standards, so these standards must be followed to comply with the required quality standards.So, when carrying out a project, these requirements must be met.

In fifth place, a project can be affected by the regulations and regulations of a legal type on a certain industry in which it is competed.Of course, every company and any project is carried out within a set of legal norms that must be respected.According to the magnitude of the project, it can be affected by national legal restrictions if it only operates within a country.But, if you have an international range, you must also comply with international legal norms.

Finally, in the general environment it is convenient to consider the following aspects:

a. Económico

It is logical to assume that the economic context greatly influences the way of operating of companies and in the way of making decisions.This, given that the cost of capital, customer demand capacity and company expansion capacity will depend on many economic variables.

Among these variables, the inflation rate, the interest rate, the exchange rate, economic growth, purchasing power, among some we can mention.

b. Demográfico

Similarly, demography is an important aspect in the composition of the population and market growth.For that reason, demographic trends should be analyzed to make accurate decisions and anticipate the changes that could occur, so that the necessary strategies that best adapt to these changes are applied.

c. Geografía y condiciones ambientales

Finally, geography and environmental conditions can also affect the result of a project, since some elements such as location, space, topography and climate where the organization is located can influence its results.

To conclude, we can say that the analysis of the company's external factors is important for the management of any project.This, since external factors are outside the organization, remain in permanent change and are difficult to control.For that reason, they can limit the development and execution of a project.