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