Thus, military agencies do interact with their environments, and much said of business firms also applies to them. There are, however, some basic differences. A military agency is much more involved with the political sector than a business firm. In the final analysis, both types of organizations must rely on the favorable response of individual citizens, but the business firm secures its support essentially from the marketplace, while the military agency
is more dependent upon making its appeal through the political process. The economic sector also influences military agencies, for like business firms, they must also deal with problems of inflation. In addition, both must draw funds from the economic environment. While a business firm receives its funds directly from sales and revenue, a military service receives its funds through the appropriations process. In either case, the amount received is very much predicated on conditions within the economic and political sectors.