Day: February 16, 2022

It is important for managers to understand the external environment for five main reasons, as discussed below: 1. To understand how competition affects their business Managers must be aware of, and understand, the competition in their business sector. This is Read More …

Understanding the environmental context of a business is of immense significance. Successful business persons would be those who may be ready to adapt to its environment. Companies that fail to adapt to their environment are unlikely to survive in the Read More …

Organizational environment denotes environmental factors influencing organizational activities. By the word “environment” we understand the surrounding or conditions in which a particular activity is carried on. And we know that organization is a social entity that has a hierarchical structure Read More …

How does the environment influence an organization? As we have seen from our open systems model, organizations need resources from the environment, their products or services have to be desired by the environment, and they need information from the environment Read More …

Why are organizations affected by their environments? In order to answer this question, let’s look at two very different organizations: Basic Bolt Company and Terrific Technologies. Basic Bolt Company sells bolts to large manufacturing companies as components to make large Read More …