Tuesday, October 8, 2013

MacroEnvironment - Elements of General Environment and of Specific Environment

Describe the primary elements of the general environment and of the specific environment.

The general environment consists of all the background conditions in the external environment of an organization. The primary elements of the general environment include the following:
       Economic conditions –– health of the economy in terms of inflation, income levels, gross domestic product, unemployment, and job outlook.
       Sociocultural conditions –– norms, customs, and values on such matters as human rights; trends in education and related social institutions; as well as demographic patterns in society.
       Legal-political conditions –– prevailing philosophy and objectives of the political party or parties running the government, as well as laws and government regulations.
       Technological conditions –– development and availability of technology, including scientific advancements.
       Natural environment conditions –– nature and conditions of the natural environment, including levels public concern expressed through environmentalism.
        The specific environment (or task environment) consists of the actual organizations, groups, and persons with whom an organization interacts and conducts business. The primary elements of the specific environment are the organization’s important stakeholders, which include the following:
       Customers ––consumer or client groups, individuals, and organizations that purchase the organization’s goods and/or use its services.
       Suppliers ––providers of the human, information, and financial resources and raw materials needed for the organization’s operations.
       Competitors –– organizations that offer the same or similar goods and services to the same consumer or client groups.
       Regulators –– government agencies and representatives, at the local, state, and national levels, that enforce laws and regulations affecting the organization’s operations.
       Investors/owners  individuals, groups, and other organizations/institutions that hold an equity interest in the business.

Source: Management, 11th Edition - John R. Schermerhorn


  1. Organizational environment denotes internal and external environmental factors influencing organizational activates and decision making. Organizations' every action of management body is influenced by the environment.

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