External factors are influences that come from outside an organization or individual, affecting their performance and decision-making. These can include economic conditions, social trends, technological advancements, and regulatory changes. For example, a rise in consumer demand can lead businesses to increase production, while new government regulations may require companies to alter their practices. Additionally, external factors can also encompass competitive pressures and market dynamics. Changes in competitor strategies or shifts in market preferences can significantly impact how a business operates. Understanding these factors is crucial for effective planning and strategy development in any field.