General Environment
As Exhibit 2.3 shows, two kinds of external environments influence organizations: the general environment and the specific environment. The general environment consists of the economy and the technological,sociocultural,and political/legal trends that indirectly affect all organizations. Changes in any sector of the general environment eventually affect most organizations. For example, when the Federal Reserve lowers its prime lending rate, most businesses benefit because banks and credit card companies lower the interest rates they charge for loans. Consumers,who can then borrow money more cheaply, might borrow more to buy homes, car, refrigerators, and large-screen TV