Briefly discuss the external business environment in which the business operates with reference.( 14)?

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 and cultural trends, and competitive forces.

For example, in terms of economic conditions, factors such as inflation rates, interest rates, and exchange rates can all have a significant impact on a business's profitability and ability to grow. Political and legal factors, such as government regulations and policies, can also affect a business's operations and strategic decisions.

Technological advancements can create opportunities for businesses to innovate and improve efficiency, but they can also pose challenges in terms of keeping up with rapidly changing technologies. Social and cultural trends can influence consumer preferences and behavior, shaping the demand for products and services.

Lastly, competitive forces in the external environment can impact a business's market share and profitability. Competitors may offer similar products or services, forcing businesses to differentiate themselves and stay ahead of the competition.

Overall, understanding and adapting to the external business environment is crucial for businesses to thrive and remain competitive in their industry.