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Ms. Celeste Ann Mascarenhas has nailed it. will second her opinion.
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Thank you for the invitation. An interesting question and a relevant answer too.
Organisational Environmental factors:
Organizational autonomy, centralization and formalization, market roles, and type/importance of goals) and three out of the five analyzed external factors ... significant impact on the performance/effectiveness (sales growth and achievement.
The interactions of business with the non-commercial environment are under increasing scrutiny. This free course, Environmental factors and organisations, looks at the relationships between business and social and ecological environments, often referred to under the umbrella term of Corporate Social Responsibility.
There are six main external factors that influence the marketing strategy of a business or organization. Some organizations may perform a SLEPT (social, legal, economical, political, and technological) analysis to obtain information on major external influences on their business
An organizational environment is composed of forces or institutions surrounding an organization that affect performance, operations, and resources. Learn more about the definition, importance, and process of organizational environments.
The Internal Environment. An organization's internal environment is composed of the elements within the organization, including current employees, management, and especially corporate culture, which defines employee behaviour. Although some elements affect the organization as a whole, others affect only the manager.
In computer software, an operating environment or integrated applications environment is the environment in which users run application software. ... An operating environment is usually not a full operating system, but is a form of middleware that rests between the OS and the application.
Basic Bolt Company sells bolts to large manufacturing companies as components to make large machines and engines. They face a relatively static environment with few changing environmental forces. Currently, there are no new competitors in their market, few new technologies being discovered, and little to no activity from outside groups that might influence the organization.
Opposite from this, Terrific Technologies is an internet marketing startup that faces a dynamic environment with rapidly changing regulations from the government, new competitors constantly entering the market, and constantly shifting consumer preferences.
These two companies have very different organizational environments. Organizational environments are composed of forces or institutions surrounding an organization that affect performance, operations, and resources. It includes all of the elements that exist outside of the organization's boundaries and have the potential to affect a portion or all of the organization. Examples include government regulatory agencies, competitors, customers, suppliers, and pressure from the public.
To manage the organization effectively, managers need to properly understand the environment. Scholars have divided environmental factors into two parts: internal and external environments.
Internal EnvironmentAn organization's internal environment consists of the entities, conditions, events, and factors within the organization that influence choices and activities. It exposes the strengths and weaknesses found within the organization. Factors that are frequently considered part of the internal environment include the employee behavior, the organization's culture, mission statement, and leadership styles.
The internal environment of Basic Bolt Company is very different from Terrific Technologies. Basic Bolt Company's leadership is results- and deadline-driven, distant, detached, and generally unconcerned about their employees' welfare or morale. Their employees are not especially dedicated to the company and are happy to leave if the opportunity arises.
Terrific Technologies' leadership style is extremely hands-on using a high degree of creativity, ingenuity, and imagination in solving organizational problems. Their managers are concerned about employee morale and welfare and go above and beyond what is necessary to make their employees feel valued and important. Their employees are very loyal to the company and are typically happy with their jobs.
External EnvironmentAn organization's external environment consists of the entities, conditions, events, and factors surrounding the organization that influence choices and activities and determine its opportunities and threats. It is also called an operating environment. Examples of factors affecting an organization's external environment include customers, public opinion, economic conditions, government regulations, and competition.
The external environment of the Basic Bolt Company and Terrific Technologies will be different as well, but a few external factors will potentially affect both companies. Basic Bolt Company's customers will have very different wants and needs compared to Terrific Technologies' clientele, but both will want a superior product or service at the lowest possible price. Both companies will face governmental regulations, but they will likely be subject to different laws and legislation. The condition of the economy will also affect both companies.
In a bad economy, even a well-run business may not be able to survive. If customers lose their jobs or take jobs that can barely support them, they'll spend less on sports, recreation, gifts, luxury goods and new cars. High interest rates on credit cards can discourage customers from spending. You can't control the economy, but understanding it can help you spot threats and opportunities.
Unless you're a one-person show, your employees are a major part of your company's internal environment. Your employees have to be good at their jobs, whether it's writing code or selling products to strangers. Managers have to be good at handling lower-level employees and overseeing other parts of the internal environment. Even if everyone's capable and talented, internal politics and conflicts can wreck a good company.
Unless your company is unique, you'll have to deal with competition. When you start your company, you fight against established, more experienced businesses in the same industry. After you establish yourself, you'll eventually have to face newer firms that try to slice away your customers. Competition can make or break you – look at how many brick-and-mortar bookstores crashed and burned competing with Amazon.
Even in a great economy, lack of money can determine whether your company survives or dies. When your cash resources are too limited, it affects the number of people you can hire, the quality of your equipment, and the amount of advertising you can buy. If you're flush with cash, you have a lot more flexibility to grow and expand your business or endure an economic downturn.
Changes in government policy can have a huge effect on your business. The tobacco industry is a classic example. Since the 1950s, cigarette companies have been required to place warning labels on their products, and they lost the right to advertise on television. Smokers have fewer and fewer places they can smoke legally. The percentage of Americans who smoke has dropped by more than half, with a corresponding effect on industry revenues.
Your internal culture consists of the values, attitudes and priorities that your employees live by. A cutthroat culture where every employee competes with one another creates a different environment from a company that emphasizes collaboration and teamwork. Typically, company culture flows from the top down. Your staff will infer your values based on the type of people you hire, fire and promote. Let them see the values you want your culture to embody.
Next to your employees, your customers and suppliers may be the most important people you deal with. Suppliers have a huge impact on your costs. The clout of any given supplier depends on scarcity: If you can't buy anywhere else, your negotiating room is limited. The power of your customers depends on how fierce the competition for their dollars is, how good your products are, and whether your advertising makes customers want to buy from you, among other things.
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