Short term and long term environmental factors

  • Home
  • /
  • Law
  • /
  • Short term and long term environmental factors

Short term and long term environmental factors

One of the important environment factor that effect the organization on short term and long term basis It includes changes in government policies changes made in law and legislation war and conflict government pressure in form of rise in tax changes in government and new government wants to wave out all old plans


Another factor that effect the environment is itself economy of the country which could affect on shorter term or longer term but most likely the economical effect most effect on longer period It includes adverse movement in exchange rates increase in taxation lower interest rate international economy effect monetary issues customer buying power change in trend and life style of people due to poor economic conditions like possibility of business would not generate as much as they were before this which ultimately result in reduction in human power which directly effect there buying power


Technology is normally has short term effect excluding some mighty machinery which take years to build and changes take place Technological factor includes change in technology as this is one of the major factor as we have seen in now a day communication and computer technology change rapidly as compare to others once a new model enter in the market will definitely absolute the previous one Other factors include changes in technological legislation licensing and patents intellectual property issue and global communication


Social is another environment factor that can affect both in short and long term to organization Social factor include change in trends fashion style organizational brand people purchasing power religious and ethical issues Media play vital role these days as a mean of spreading awareness among people which can be in any sector Major events has a short term environment affects

Importance of Environmental Factor Affecting Organization

It is obvious that any change in the environment factor can directly or in directly affects the organization operations in that particular environment Politically if the is change in government policy or legislation that has direct effect on all organization and sectors all business have to adopt the changes take place Technological if there has been change in technology as latest version of machinery launched every business which directly use such machinery to run there business need to update accordingly in order to survive in the competitor market otherwise competitor take lead in business operations Social and economy factors also has important influence on organization activities suppose if organization is doing trade with international business partners in case of war both countries government impose restriction on the trade which affect both businesses on the other hand if economy is on downfall trend in fact all businesses faces decline in the profit percentage as customers buying power has fall as a result of poor economic conditions

Expectation of Stake holders

A stakeholder is any person or organization who can be positively or negatively impacted by or cause an impact on the actions of a company government or organization

Following are the stake holders of almost every business



Trade creditors





Local community


Every stakeholder has it on expectations from the company or business Customers demand high quality but cheap price products and services Employees has there own expectations like secure future attractive salary plus bonuses Trade creditors demand long credit period Bank is interested in it financial performance and business is able pay the interest rates Government is interested in business paying tax on time Shareholders are interested in increase in wealth which result in business generates profits Investors interested on return on there investment Local community expects employment opportunities from bus

* If you are the original writer of this essay and no longer wish to have the essay published on the WetPapers website then please email us at wet papers 1 @ gmail dot com for removal request.

© 2018 WetPapers. All rights reserved. Privacy Policy Terms of Service Disclaimer Copyright