The External Environment
• When we use the term external environment here, it means more than an
organization’s clients or customers; the external environment includes all relevant
forces outside the organization’s boundaries.
• These factors are uncontrollable.
• Companies large and small are buffeted or batterd by recession, government interference, competitors’ actions, and other factors.
• Manager must stay abreast of external developments and react effectively.
• External environment: all relevant forces outside a firm’s boundaries, such as competitors, customers,
the government, and the economy.
• Competitive environment: The immediate environment surrounding a firm; includes suppliers, customers, rivals, and the like.
• Macroenvironment: The general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations.
The External Environment• When we use the term external environment here, it means more than anorganization’s clients or customers; the external environment includes all relevantforces outside the organization’s boundaries.• These factors are uncontrollable.• Companies large and small are buffeted or batterd by recession, government interference, competitors’ actions, and other factors.• Manager must stay abreast of external developments and react effectively.• External environment: all relevant forces outside a firm’s boundaries, such as competitors, customers,the government, and the economy.• Competitive environment: The immediate environment surrounding a firm; includes suppliers, customers, rivals, and the like.• Macroenvironment: The general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations.
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