External influences affecting the firm and its activities Essay - 1

External influences affecting the firm and its activities - Essay Example itate corresponding change in strategy so as to take into considerations of the emerging risks which may influence the overall development of the business enterprise. These external factors are highly relevant for smooth operations of the business. ‘These are characterised by 4Is: issues, institutions, interests and information’1 (Baron, p2). Non market factors, in emerging markets become all the more crucial because of the sensitive nature of the new market potential and the volatility of the market forces. The socio-political environment coupled with the media and public opinion are become vital factors for the stakeholders interests. The strategic relevance of 4Is is vital to the success of the business operations. Issues, which might clash with the operations and performance of the company, must be addressed urgently. The institutions are defined as bodies which are affected by the issues, which may be local or national in character. Interests are the personal stake of the individual or groups, in the issues. Lastly the information relates to the various facts and fictions of the issues and the actions taken thereon. Some recent external factors, which are having significant impact on the business, the world would be taken up. It is especially true in the contemporary times, when the global economy is going under tremendous turmoil. The recessive trends in the market have become crucial factors that are having varying degree of impact on the businesses across the world. The American economy has been under tremendous strain with its deteriorating job market and dismal performance of its various public private companies. Recession has also been declared in Britain and the effect of such trends could be clearly seen across the globe. The bankruptcy of major financial institutions has resulted in the financial meltdown that has created a serious crisis situation in the global economy. The economic disaster has topped the priority issues (CBS) that need to be