Friday, March 19, 2010

TYPES OF ENVIRONMENT-INTERNAL AND EXTERNAL

Every organization needs to be perceived as operating in an environment. Organizations are neither self-sufficient not self-contained. Rather they exchange resources with and dependent upon external environment. External environment can be defined as all the forces and conditions outside the organization that are relevant to its operation and influence the organization. Organizations take inputs(raw materials, money, labor and energy) from the external environment, transform them into products or services, and send back as output to the external environment. The other environment is internal which can be defined as all the forces and conditions within the organization that influences its behavior. Thus, environment can be broadly classified into (1) Internal environment, and (2) External environment.

(1) Internal Environment

Each business organization has an internal environment, which includes all the elements within the organization's boundaries. Strictly speaking they are part of the organization itself. The major components of the internal environment are :

a. Employees
b. Shareholders and Board of Directors
c. Culture

(2) External Environment

According to James Stoner, External environment can be defined as all elements outside an organization that are relevant to its operation. This environmental context becomes more clear if the external environment is further divided into two distinct segments:(1) general environment and (2) task environment.

(a) General Environment

The general environment consists of interrelated forces that can be categorized into four elements:

1. Economic Environment
2. Socio-Culture Environment
3. Political Legal Environment
4. Technological Environment

(b) Task Environment

The task environment puts indirect pressures on business management through the institutional processes of following elements:

1. Customers
2. Suppliers
3. Competitors
4. Financial Institution
5. Government
6. Media

26 comments:

  1. Perfect ideas . They all clears my all ideas , i love this article . Thanks for these great ideas.:-!

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  2. Perfect ideas . They all clears my all ideas , i love this article . Thanks for these great ideas.:-!

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  3. thats shallow atleast you could have said general and industrial enviroments

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  4. Organizational environment denotes internal and external environmental factors influencing organizational activates and decision making. Organization or more specifically business organization and it’s activates are always being affected by the environment. In an organization, every action of management body is influenced by the environment.

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  5. good but something has wrong because culture is not a internal factor

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  6. This is a very nice article.. I love this

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  7. Thank you for sharing, You made my day sir .

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  8. It was such a wonderful article.Management Processis the process of setting goals planning ,controlling and organizing the activities.

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  9. Nice articles.
    I am also business blogger . i have also some articles about Business Environment please visit once.

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  10. Components of the business environment are classified into the following major categories.

    Internal Environment
    External Environment
    for more
    https://businessmantalk.com/components-of-business-environment/

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  11. Nice articles.
    I am also business study blogger . i have also some articles about Component of Business Environment please visit once and give me some feedback. Thank You.
    Component of business environment

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  12. Thank you for providing such a nice article about the MEP services. I've note some important points from your blog. I'm going to share it with my friends. Thank you and keep it up.

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  13. Thanks alot,it's highly interesting to meet with a such good explanation pertaining Environment of an organization...big up may Almighty Lord God bless you more 👍👍

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  14. This is very nice and amazing.
    Thank you so much

    ReplyDelete