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Analyzing Company’s External Environment

Analyzing Company’s External Environment

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Published by kimsr

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Published by: kimsr on Nov 23, 2009
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05/11/2014

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Analyzing Company’sExternal EnvironmentModule-
3
 
2
 Terms and Concepts
Environmental uncertainty:
The
degree of complexitydegree of complexity
plus the
degree of changedegree of change
existing inan organization’s external environment.
Environmental scanning:The monitoring, evaluating, and disseminating of informationfrom the external and internal environments to key peoplewithin the corporation to avoid strategic surprise and ensurethe long-term health of the firm.Industry defined:A group of firms producing a similar product or service, suchas soft drinks or financial services.
 
3
 The External Environment
Societal environment (Macro)Societal environment (
 
Macro):
General forces that do not directly touch onthe short-run activities but often influence itslong-run decisions
.
Task environment (Industry)Task environment (
 
Industry):
Those elements or groups that directly affect the corporation and, in turn, are affected by it.The task environment is the industry withinwhich that firm operates
.

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