BU398 Chapter 4: Ch04 The External Environment
Document Summary
Organizational environment is all elements that exist outside the boundary of the organization and have potential to affect all or part of the organization. An organization"s domain is an organization"s chosen environmental field of activity. Sectors with which the organization interacts directly and that have a direct effect on the organization"s ability to achieve its goals. Typically includes the industry, raw materials, and market sectors (and sometimes hr and international sectors) Includes those sectors that may not directly affect the daily operations of a firm but will indirectly influence it. Often includes the government, sociocultural, economic conditions, technology, and financial. For example: in the sociocultural sector, shifting demographics play a significant role. In the us, hispanics have passed african americans as the nation"s largest minority group, and their numbers are growing so fast that hispanics are becoming a driving force in us politics, economics, and culture.
