In the increasing intricacy of business today there are many external factors that impact the planning functions of management at the Boqu’s Co. Management must be mindful of these factors because they could have a major impact on the organizations productivity. The process of assessing the external factors that an organization will face is called an external audit. “The purpose of an external audit is to develop a finite list of opportunities and that could benefit the firm or organization and threats that should be avoided” according to (David, 2016). The external audit consists of five factors.
These five factors can be vital to the planning function of management. The key external forces that Boqu’s Co may face are economic, social, culture, demographic, natural environment political, government, legal forces, technological and competitive. The management team at Boqu’s Co must determine a set of issues and constraints and then list the assumptions that will impact the implementation of the plan.
