A host of external and often largely uncontrolled factors influence a firm's choice of direction and action and ultimately its organizational structure and internal processes. These factors which constitute the external environment can be divided into two interrelated subcategories those in the remote environment and those in immediate operating environment. Remote environment The remote environment is composed of a set of forces that originate beyond and usually irrespective of any single firm 's operating situation-- Economic Political Social Technological Industry Economic Consideration It refers to the nature and direction of the economy in which the business operates Social Consideration This involves the beliefs ,values, attitudes, opinions , and lifestyles of those in a firm's external environment, as developed from their cultural,ecological,demographic,religious,educational and ethnic conditioning. Political Conditioning The direction and