Which factor is considered uncontrollable and can affect an organization's strategic decisions?

CIPS Managing Ethical Procurement and Supply Test is designed to enhance your understanding of ethical practices in procurement. Study with comprehensive questions and explanations. Prepare effectively for your exam!

The factor that is considered uncontrollable and can significantly affect an organization's strategic decisions is macro-environmental factors. These factors include broader economic, political, social, technological, environmental, and legal influences that are typically outside the direct control of an organization. For instance, changes in government policies, economic downturns, technological advancements, or shifts in societal values can dramatically alter market conditions and affect strategic planning.

Organizations must constantly monitor and assess these macro-environmental factors because they can lead to opportunities or threats that necessitate strategic adjustments. While organizations can address employee turnover, modify sales performance strategies, or respond to market trends, macro-environmental forces can challenge their operations in fundamental ways that require a more reactive and adaptable approach.

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