COMMERCE 1BA3 Final: 13-Environment-Strategy-and-Technology-Pt.-1
10 Mar 2017
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Document Summary
Events and conditions surrounding an organization that influence its activities. Organizations can be described as open systems that take inputs from the external environment, transform some of them, and send them back into the environment as outputs. The dependency of organizations on environmental inputs, such as capital, raw materials, and human resources. Organizations vary in how resource dependent they are (high to low) The degree of resource dependency is a function of environmental uncertainty. The strategy of formally taking control of sources of organizational supply and distribution. When they occur in the same industry, they can reduce the uncertainty prompted by competition. When they occur across different industries, the goal is often to reduce resource dependence. A condition that exists when the external environment is vague, difficult to diagnose and unpredictable. The process by which top executives seek to cope with the constraints and opportunities that an organization"s environment poses.
