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Chapter 3 The External Environment, (All external factors that can affect…
Chapter 3
The External Environment
THE EXTERNAL ENVIRONMENT
The external organizational environment
general environments
Distance: Closer to the organization.
Interaction: Conducts day-to-day transactions.
Impact: DIRECTLY influences basic operations and performance
task environments
Distance: Further away from the daily core.
Interaction: Broad societal, global, or economic shifts.
Impact: INDIRECTLY affects the organization
Customers -The ultimate decision -marks
:red_flag:
Definition :explode:
People or organizations
Acquire goods or services
Recipients of organizational output
Important :<3:
Generate revenue
Determine organizational success
Influence business performance
Market Changes :silhouettes:
Changing customer needs
Increasing demand for new products
ORGANIZATIONAL RESPONSE :pencil2:
Adapt to customer needs
Improve products and services
Innovate to remain competitive
Example: :star:
Shopee improves delivery speed to meet customers’ demand for faster shipping.
(All external factors that can affect the organization)
Sectors close to the organization that directly affect its daily operations and performance.
2 Layers of the Outside World
affects the organization indirectly