What types of environmental factors do businesses often consider when conducting a situational analysis?

D. Internal and external

D Internal and external. The environmental factors that businesses consider when conducting a situational analysis may be internal as well as external. Internal factors are those within the business itself that have an impact on the businesss marketing effort, such as the distribution system or the pricing strategy. External factors are those that exist outside the business and over which the business may have no control, such as the state of the economy or the number of competitors. Businesses examine both types of environmental factors in order to adapt to change and make effective marketing decisions. For example, a business might decide to adjust its prices to remain competitive if the economy is slowing down. Physical and personal, ethical and legal, and formal and informal are not types of environmental factors that businesses consider when conducting a situational analysis.