What are two factors that affect a business?

Hello,

your question is incomplete, but I will give an answer that should set you on the right track. So, first things first, business is affected internally (factors within organization that affect success of its operations) and externally (variety of factors that business typically has no control over).

Internally, business can be affected by the role of leadership in the company.Leader`s style shapes up organizational culture and leadership approach determines nature within organization, level of friendliness, effectiveness of communication, etc. On another hand, we have employees and their strengths and qualities.It is important to have best affordable at disposal, in order to produce efficient and effective results and outcomes.

Externally, you have competitors first.You always need to know your competition well, because, for example, their quality and pricing will affect your profitability, if you did not price your product properly with its quality and that of your competitor.This is why organizations use competitive analysis to analyse and compare offerings and price with those of competition.

Other external factors include socio-economic, political, technological, environmental, legal... factors over which businesses typically have zero or little control over.Businesses analyse these factors by using specific frameworks.Examples include PESTLE, STEEP, STEP... all these are analysis frameworks for external factors.

I hope I have shed some light to your question.Feel free to contact for any further questions.

Regards