Introduction to Management - the External Environment
The External Environment
The external organizational environment includes all elements existing outside the boundary of the organization that have the potential to affect the organization.
This environment includes competitors, resources, technology, and economic conditions that influence the organization.
The organization external environments are having 2 layers:
• General environment: The outer layer that is widely dispersed and affects organization indirectly. It includes social, demographic, and economic factors that influence all organizations about equally. • Task environment: the layer that influences the organization’s performance and operations directly. It generally includes competitors, suppliers and customers. The organization also has an internal environment, which includes the elements within the organization boundaries. The internal environment is composed of current employees, management, and especially corporate culture, which define employee behavior and how the organization will adapt to external environment.
General Environment
• International The international dimension of the external environment represents events originating in foreign countries as well as opportunities for American companies in other countries. The international environment provides new competitors, customers, and suppliers and etc.
The global environment represents an ever changing and uneven playing field compared with the domestic environment. Changes in the international domain can abruptly turn the domestic environment upside down.
Managers who are used to thinking only about the domestic environment must learn new rules to cope with goods, services, and ideas circulating around the globe.
• Technological The technological dimension includes scientific and technological advancements in a specific industry as well as in society at large. In recent year, this
The external organizational environment includes all elements existing outside the boundary of the organization that have the potential to affect the organization.
This environment includes competitors, resources, technology, and economic conditions that influence the organization.
The organization external environments are having 2 layers:
• General environment: The outer layer that is widely dispersed and affects organization indirectly. It includes social, demographic, and economic factors that influence all organizations about equally. • Task environment: the layer that influences the organization’s performance and operations directly. It generally includes competitors, suppliers and customers. The organization also has an internal environment, which includes the elements within the organization boundaries. The internal environment is composed of current employees, management, and especially corporate culture, which define employee behavior and how the organization will adapt to external environment.
General Environment
• International The international dimension of the external environment represents events originating in foreign countries as well as opportunities for American companies in other countries. The international environment provides new competitors, customers, and suppliers and etc.
The global environment represents an ever changing and uneven playing field compared with the domestic environment. Changes in the international domain can abruptly turn the domestic environment upside down.
Managers who are used to thinking only about the domestic environment must learn new rules to cope with goods, services, and ideas circulating around the globe.
• Technological The technological dimension includes scientific and technological advancements in a specific industry as well as in society at large. In recent year, this