external environment

Definition

Also known as the operating environment, this refers to market conditions, economic and political issues on the local and national levels, demographic factors, and other forces outside of a business that affect the overall success of that business. The external environment creates both risks and opportunities for a company.

Use this term in a sentence

The external environment was analyzed as we wanted to understand all variables that could potentially affect our projects likelihood of success.

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Western Union was once a highly profitable business with a growing global network; today many doubt its future propsects due to adverse external environment.

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Gas prices have been risen dramatically over the last 10 years as salaries have remained stagnant; these external environmental factors have caused consumers to purchase smaller or more fuel efficient cars.

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