Philip Selznick states that “an organization is adaptive—adapting to influence upon it from an external environment,” and Chester I. Barnard, writing in The Functions of the Executive, notes that “the very survival of an organization depends on a proper environment equilibrium.” Figure 1 is a graphic example of this delicate balance. Note that the arrows depict a continual interchange between the organization and its environment. For example, if the organization is a business firm, it must advertise and sell its product to customers who are in the broader environment. If the firm cannot sell its product, it will not survive.