forrandom.blogg.se - Two types of environment

Most organizations are limited to influencing their industry. The industry (or competitive environment) consists of multiple organizations that collectively compete with one another by providing similar goods, services, or both.Įvery action that an organization takes, such as raising its prices or launching an advertising campaign, creates some degree of changes in the world around it. The general environment (or macroenvironment) includes overall trends and events in society such as social trends, technological trends, demographics, and economic conditions.

It is useful to break the concept of the environment down into two components. Congress, and many additional conditions and forces. In the case of Subway, for example, the environment contains its customers, its rivals such as McDonald’s and Kentucky Fried Chicken, social trends such as the shift in society toward healthier eating, political entities such as the U.S.

Learn the difference between the general environment and the industry.įor any organization, the environment consists of the set of external conditions and forces that have the potential to influence the organization.

Understand how an organization and its environment affect each other.

Define the environment in the context of business.