BUS 304 Lecture : Ch.4 - The External Environment
Document Summary
Organizational environment: all elements that exist outside the boundary of the organization and have the potential to affect all or part of the organization: can be understood by analyzing its domain. The domain defines the niche and defines those external sectors the organization will interact with to accomplish its goals. Domain: chosen environmental field of action, the territory an organization is in regards to products, services, and markets served: sectors: what the environment is compiled of. Task environment (type of sector: sectors the organization interacts directly with and have a direct impact on achieving goals, mostly the: General environment (type of sector: sectors that might not have a direct impact on daily operations but indirectly influence. Government (city, state, laws, taxes, political process) Sociocultural (age, values, beliefs, education, religion, work ethic) Economic (recession, unemployment rate, inflation, economics, growth) Technology (techniques of production, science, computers, it, e-commerce) Financial (stock markets, banks, savings and loans, private investors)