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Businesses large and small are affected not only by their own internal factors, but also by environmental factors over which they have little if any control. Marketing decisions must take into account these environmental factors to create an accurate picture of the marketplace and the company's standing within it. To ignore the outside factors is to set yourself up for failed marketing and lost revenue that can, in turn, affect the health of your entire brand.
The economic environment of business is affected by internal and external factors. An internal factor that affects the business environment is the cost of labor, materials, processes and procedures.Internal factors can be improved through company projects. On the other hand, external factors can also affect a company's business environment and the business has less control over these factors.conomics. The larger economic environment of a society is a factor that can affect a company's business environment. During a recession, consumers spend less on optional items such as cars and appliances. As a result, the business environment suffers.