External Factors That Affect Coach

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External Factors That Affect Coach Inc. Positively/Negatively There are many factors that affect a company 's external environment. These factors can be broken down into two main categories. The first category of external environment factors that can affect a company is the macro-environment. According to the Crafting and Executing Strategy 's “Six components of the Macro-Environment”, it includes: legislation, technology, general economic conditions, population demographics, and societal values & lifestyle (Thompson). These macro-environment factors affect Coach 's strategy and objective decisions directly. Because a company can not influence these external macro-environmental factors, they must try to evaluate past history, and try to look for future developments within their environment in order to have an immediate reaction to any external changes. The second category of external environment factors is the immediate industry. According to Thompson this category includes: Substitute products, threat of new entrants, rivalry among competing sellers, bargaining power of customers, and the bargaining power of suppliers. These two categories – Macro-environment and immediate industry – can both affect Coach negatively and positively depending on the company 's level of pro-activeness. Some of these that do have a major impact on Coach Inc. are market size, numbers of buyers and rivals, innovation, product and differentiation of product and price. Market size/growth
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