Briefly discuss the external business environment in which the business operates with examples?

The external business environment refers to factors outside of the business that can impact its operations and success. This includes economic conditions, political and legal factors, technological advancements, social trends, and competitive forces.

For example, economic conditions such as inflation, interest rates, and unemployment rates can affect consumer spending and demand for products or services. Political and legal factors, such as government regulations and policies, can impact business operations and profitability. Technological advancements, such as the rise of e-commerce and automation, can create new opportunities for businesses but also pose challenges in terms of staying competitive.

Social trends, such as changing consumer preferences and attitudes towards sustainability, can influence the demand for certain products or services. Finally, competitive forces, such as the actions of rival companies and new market entrants, can impact a business's market share and profitability.

Overall, the external business environment is constantly changing and businesses must adapt to these factors in order to remain successful.