Identify and analyze the relationship of the organization and the key external forces.

The organization's interaction with significant external influences

Economic considerations. The economy has an impact on our daily life. The amount of money we earn, spend, our goals and requirements, competitive pricing, and other factors all play a role in the financial decisions we make on a daily basis. Economic considerations have a significant impact on businesses. A market meltdown or a recession will have a direct influence on a company's revenues. Companies are immediately harmed when individuals can no longer buy a product or opt to spend their money elsewhere. Companies, on the other hand, are impacted when the economy is strong and consumers have more money to spend or invest. Adapting to economic changes and adjusting organizational methods to suit them is critical to a company's existence.

Political Constraints. Politics may have an impact on company culture in a number of ways. Congress makes rules and regulations that can affect how an organization functions on a broad scale. Even if an organization disagrees with a law, it is still legally required to follow it. Relationship politics may have an impact on culture on a smaller scale. Competing for clients or market share with competing businesses may be political and have an impact on how a company operates. Politics, whether on a local or large scale, may affect a company's aims and objectives, as well as how they choose to achieve them.

Factors related to technology. Today's workforce is heavily reliant on technology. It is continuously upgrading and changing, making it difficult for businesses and their employees to keep up at times. Technology is a significant outside influence on organizational behavior. It has had a significant impact on how businesses operate throughout the years, and it continues to create ripples with each new technological advancement. It is critical to integrate technology into every organization's organizational culture in order to build and sustain a successful, cutting-edge business.

Factors of a social nature. External forces such as public opinion and social expectations compel businesses to rethink how they operate. If the general public develops a poor impression of your firm, it may have a negative influence on your bottom line. Organizations must meet high social responsibility standards, according to society. Community outreach, sustainability, diversity promotion,  and ethical conduct are all subjects that fall under the umbrella of social responsibility. To be effective, each of these themes must be included into a company's culture. Companies are well supervised by society, thanks to public scrutiny and fast access to information via technology.

Competition. There are several rivals in every industry. The decisions you make inside your company may be influenced by what your rivals do. To maintain firm survival, you must be able to alter corporate culture to meet the needs of your competitors. Updated industry standards and changing safety regulations are two more industry issues to consider. Adjusting firm objectives to realign the business is necessary to ensure compliance with industry norms.