Some of these external factors are economic, demographic, and environmental. The economic environment includes interest rates, income, stock markets. Recessions really affect this external factor, changing how people spend and what companies need to do to stay in business. Demographics deal with population trends. These trends could study the characteristics of eras such as baby boomers, post-millennials, and Generation Y. These populations have a great influence on how to manage companies to stay current with their business goals. There are political challenges that could change the laws and how certain things should be handled. It is important that managers always stay up to date on new regulations that are arriving and which could change the way they work. There is a sociocultural component that has to do with values, beliefs and traditions. Seeing the differences in what customers believe can change how managers manage their people. There is also technology that has influenced every business. Staying up to date with the latest technology can help you stay connected with all your employees. Finally there is a global component that has to do with the world