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 inflation can impact consumer spending, while new technology can create opportunities for innovation. In addition to economic and technological influences, external factors also encompass competitive dynamics and environmental conditions. The actions of competitors can shape market strategies, while factors like climate change can affect resource availability. Understanding these external elements is crucial for effective planning and adaptation.