Some of these external factors are economic, demographic and environmental. The economic environment includes interest rates, incomes, and stock markets. Recessions really affect that external factor that changes how people spend and what businesses need to do to continue operating. Demographics are related to population trends. These trends could study the characteristics of ages such as baby boomers, post-millennials and millennials. These populations have a major influence on how businesses are managed to stay on top of their goals. There are policy challenges that could change laws and how certain things should be handled. It is important for managers to stay up to date with new regulations that are coming that could change the way they work. There is a sociocultural component linked to values, beliefs and traditions. Seeing the differences in what customers think can change the way managers manage their employees. There is also technology that has affected every business. Staying up to date with the latest technology can help keep in touch with all employees. Finally there is a global component which has to do with the world