ADM 2336 Chapter Notes - Chapter 15: Vertical Integration, Joanne Woodward, Communization
Document Summary
Chapter 15: the external environment of organizations. The external environment consists of events and conditions surrounding an organization that influence its activities. The external environment has a tremendous influence on organizations and profoundly shapes organizational behaviour: organizations as open systems. Open systems are systems that take inputs from the external environment, transform some of these inputs, and send them back into the external environment as outputs. This concept is important because it sensitizes us to the need for organizations to cope with demands of the environment on both the input and the output side: components of the external environment. It is useful to divide the external environment into a manageable number of components. The general economy affects organizations as they profit from an upturn or suffer from a downturn. All organizations have potential customers for their products and services. Successful firms are highly sensitive to customer relations.
