External analysis for Ameresco Inc. (AMRC) Research Paper

External analysis for Ameresco Inc. (AMRC) - Research Paper Example heless, increased participation in the energy services industry has yielded increased competition between companies in the industry amid challenges presented by the external environment. The external environment has significant influence on the performance of companies through economic, technological, political-legal, and sociocultural factors. To sufficiently understand the influences of the external environment it is important to concentrate on a specific player in the industry such as Ameresco Inc. which is one of the largest energy services companies in North America. Although the economy cannot be controlled by an organization, it has great influence on the growth and development of a particular organization. This can be attributed to the impacts of economic growth, inflation, economic stability, and unemployment policies on the success of an organization (Dragnic, 2014). Ameresco’s location in North America gives it an advantage of relatively little negative influence of the economy. For example, its location in the USA is favorable to its success due the constant economic stability and growth presenting an opportunity for success. Additionally, inflation rates are relatively low thereby increasing its chances of success. However, areas with high unemployment rates offer relatively cheap labor hence increasing profit margins and vice versa. As such, the cost of labor incurred b Ameresco is relatively high although the changing times may present costs reductions based on labor importation trends. Technology plays a critical role in the de velopment of the energy savings industry. Technological advancements mainly focus on improving efficiency of energy consumption while maintaining low costs and conserving the environment. As such, the recent technological advancements pose a great opportunity for Ameresco’s success. Moreover, the political aspect heavily affects the performance of a particular industry depending on either favorable or unfavorable