Businesses do not operate in a vacuum. They operate in a dynamic, complex and competitive environment. So, the success and failure of many companies depends on several factors and the possibility to analyze them according the information level. The importance and the priorities of factors analysis vary from one situation to another due to the specific nature of the product and service, company and industry. Therefore, the organizational processes have to be based and adapted to the external environment. The main purpose of this paper is to critically examine and rank the effects of external environment factors on organizational performance in an industry. The data are collected through a structured questionnaire. The questionnaire includes sections which assess the impact of changes and developments in the external environment. The survey is conducted mainly in Vlora city and randomly in Himara and Orikum. Following the purpose of the study, it has been involved all the construction companies that do business in the city of Vlora and in their construction projects portfolios are involved: infrastructure, residential buildings (living apartments and villas), industrial constructions and other buildings such as hospitals, universities, government buildings, etc. To analyze the data collected through the questionnaires, we used the statistical test such as mean, median, standard deviation as well as specific weights to rank the evaluation effect of each external factor.This paper reports findings on the relationship between the external factors and the organizational performance. The study found significant positive and negative effects of external factors on performance as well as classifying them in the factors that facilitate or create barriers to business.

Studies have proven that organizations in order to be vital, economically valuable and profitable in the market have to adapt to the external environment. The success and the failure of many companies depend on the factors which affect their activities. Without taking into account the impact of environmental factors, it is not possible to formulate a good strategy or to conduct profitable business. This environment refers to the factors that are outside the influence and control of the organization. It should be an important part of the decision making process and developing process of competitive strategies. The intensive changes of business conditions are an important fact that the organization does not operate in a vacuum. It operates as an open system, located in a certain field and connected directly with the influence of factors that compose this environment. This paper serves to provide a picture of the external environment as a tool of refining and focusing for the industry in which each company operates.

The relationship between competition and challenges for sustainable growth in the country, industry or a firm is an argument and a basic element for the development of policies, strategies and adaptation to strategic changes. The purpose of this paper is to review the existing frameworks for analysing and understanding competitiveness and especially their application within an industry. In order that, this initiative to study and measure the attractiveness of the industry, to develop and find the proper implementation, it is necessary to build the field and infrastructure through which it will be possible to understand and measure indicators such as attractiveness, rivalry among firms, competitive position in the industry and the strategic choices. Based on this review, it is given the way in which each industry can be studied and, above all, to test the extent of application of the model and the theory of Porter in the Albanian business environment.

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