The term ‘external environment’ is referred to all of the characteristics that are present outside the organisation. The organisational aspects may also not be influenced by these specific elements. This involves all social, economic, political, and technological characteristics. The external environment of an organisation can be distinguished into two different concepts, i.e., the task environment and the general environment. The layer of the external environment that poses indirect impacts on the organisation is referred to as the external environment. On the other end, the layer of the external environment due to which the performance and operations of the organisation are influenced directly is referred to as the task environment.
The layer of the external environment that imposes indirect effects on the organisation is referred to as the general environment. The general environment involves international, political-legal, economic, technological, and socio-cultural elements. A direct impact is imposed by the changes in the macro-environmental factors of the JB Hi-Fi Limited, however, it may also impose significant impacts on other players in the retail industry too. In comparison to other competitive forces, numerous operating challenges will be faced by the company in its prevalent macro-environment. For example, if Jb Hi-Fi is located in an unstable political atmosphere then an industry with a hugely strong and profitable growth will not be beneficial for the company.
The technological dimension is referred as the present knowledge state regarding the production of services and goods. The technological environment of JB Hi-Fi Limited Companies requires to understand some critical impacts, such as rate of technological diffusion, influence on value structure of value chain in retailing structure, the influence of the structure of cost in the retailing industry, the impact of technology on product offering, and recent technological developments by the company.