Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is an example of an external influence?

1. Customer feedback

2. Technological advancements

3. Employee performance

4. Internal business strategy

The correct answer is: Technological advancements

Technological advancements represent an external influence because they originate from factors outside the organization and can significantly impact how a company operates and competes in the market. For instance, new technologies can change the way businesses manage their supply chains, improve efficiencies, or alter consumer behaviors. Organizations must adapt to these advancements to remain competitive, thus making them a significant external factor. In contrast, customer feedback is more about understanding consumer preferences and is internal in its consideration of how a company can better serve its market. Employee performance pertains to the internal dynamics of an organization and focuses on the effectiveness of its workforce. Lastly, internal business strategy clearly reflects an organization's approach to achieving its goals and objectives, utilizing its resources and capabilities. These elements, while critical to a company’s operation, do not fall under the category of external influences as they originate from within the organization itself.