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External factors is defined “Businesses can’t control external factors but must respond to them. These political, economic, social, technological, environmental and competitive factors are represented by the acronym PESTEC” (BBC,2022). So many companies are constantly evolving due to the constant technology advancement, low source of certain items, outer factors that impact the company resulting in necessary change from the company. Many traditional companies that do not have much technological use, or depend on natural resources, and human labor are soon being blended out due to technology advancement and man main resources that can be cheaper route for the company.
A perfect example, is COVID and this pandemic. I always tend to go back to this example because we have watched companies either go up or completely down to closing out their business. With is massive hit to the entire world, so many companies were unable to recovery from this eruptive change to the business, but that was not the case for Amazon. Amazon, grew so big their company expanded immensely having to hire a ton more of employees. “ Amazon on Thursday reported $108.5 billion in sales in the first three months of the year, up 44 percent from a year earlier. It also posted $8.1 billion in profit, an increase of 220 percent from the same period last year” (Weise,2021). Amazon is the top online platform right now, this external factor was a benefit to the company and its growth that come with it.
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