External environmental factors

• What are market forces? 


  Economic factors that influence supply and demand.
• What are external factors? 


  Influences outside the organisations control that affects its operations. E.g. political environment.
• What represents an external environmental factor?

  Market forces and regulatory changes
• What is a supply chain? 


  The flow of goods, services and information from sellers to customers
• What is a essential Component of an efficient supply chain? 


  Inventory management
• Why is effective inventory management crucial for a smooth supply chain? 


  To maintain optimal stock levels for the organisation.
• What is the role of distribution channels in the supply chain? 


  To ensure timely delivery of products to customers
• What is the role of logistics in the supply chain? 


  To ensure the efficient movement of goods and materials.
• What role does cometiton typically play in market forces? 


  It encourages innovation and improves quality.