Organisational Change

1.7.1 External Forces of Change

Change is a way of life. External forces of change are classified under five broad categories.

1. Economic environment
2. Technological environment
3. Political and government environment
4. Socio-cultural environment
5. Operating or task environment

Economic Environment

Economic conditions, economic policies and the economic system are the important external factors that constitute the economic environment of a business.

The economic conditions of a country, for example, the nature of the economy, the stage of development of the economy, economic resources, the level of income, the distribution of income and assets are among the very important determinants of business strategies.

Nature of the Indian Economy    Economy is ...