What’s Outside the Business… Still Matters to You
Day-to-day responsibilities often focus on internal tasks, but have you ever considered what shapes those tasks in the first place?
External factors influence how organisations operate, what priorities shift, and how resources are used. These are typically grouped into two types (Johnson, Scholes and Whittington, 2011):
Micro Factors – close to the organisation, including:
- Customers and clients
- Competitors
- Suppliers
- Local community or partners
Macro Factors – broader societal forces, such as:
- Political and legal changes (e.g. new regulations)
- Economic trends (e.g. inflation, interest rates)
- Social factors (e.g. changing demographics or public opinion)
- Technological developments (e.g. automation, AI)
- Environmental issues (e.g. sustainability expectations)
Together, these influence decision-making, resourcing, communication, and customer engagement, often in ways that are not immediately visible (PESTLEanalysis.com, 2019).
Real-World Examples
- If an organisation relies on global suppliers, a macro factor like a supply chain disruption or rise in fuel costs might delay deliveries or increase prices. This can lead to changed deadlines, reallocation of tasks, or shifts in customer communication (PESTLEanalysis.com, 2019).
- A new competitor entering the market (a micro factor) could trigger a review of pricing, service standards, or efficiency targets - potentially prompting changes to internal priorities (Porter, 2008).
- A legal update, such as GDPR or health and safety legislation, may result in revised processes for handling information or documentation. Accuracy, organisation, and timely communication become essential for meeting new expectations (CIPD, 2020).
Even if you’re not part of strategic decision-making, your awareness and ability to respond positively to change is valuable. Understanding how external forces connect to your work helps you stay informed, adaptable, and ready to contribute in meaningful ways (Ulrich et al., 2008).
Why It Matters to Your Role
Understanding external factors helps you:
- Respond more calmly and effectively to change
- Spot potential issues or delays before they escalate
- Suggest improvements that reflect what’s happening outside the business
- Support communication between internal teams and external partners
According to Ulrich et al. (2008), strong business support professionals help bridge internal operations and external strategy, playing a key role in how the business translates its goals into day-to-day action.
Building Commercial Awareness
You don’t need to know everything happening in the world—but staying curious helps. Try this:
- Read your organisation’s newsletters, memos, or sector updates
- Follow your industry’s LinkedIn page or local news
- Ask questions in meetings: “Has anything external influenced this decision?”
Even small bits of awareness help you better understand business priorities—and help others see you as someone who is switched on and solution-focused.
Action Point
Think of a recent change, challenge, or improvement at work. Ask yourself:
- What external factor (e.g. customer need, economic shift, new law) may have influenced it?
- How did that factor impact your tasks or team?
- What could you do differently next time to respond more confidently or add value?
By linking your actions to external drivers, you build stronger awareness and a more strategic mindset.