The specific environment:
The part of the external environment that is directly relevant to the
achievement of an organization’s goals.
An organization exists to meet the needs of customerswho use its output. Customers represent potential uncertainty to anorganization.
Managers seek to ensure a steady flow of needed input
(supplies) at the lowest price possible. An organization’s supplies
being limited or delayed in delivery can const
decisions and actions.
profit and nonprofit
have one ormore competitors.
Public Pressure Groups: Managers must recognize the special-interest groups that attempt to influence the actions of organizations.
The general environment:
Broad external conditions that may affect the organization.
Interest rates inflation, changes in disposableincome, stock market fluctuations, and the stage of the generalbusiness cycle are some of the economic factors that can affect management practices.
Federal, provincial, and localgovernments influence what organizations can and cannot do. Somefederal legislation has significant implications.
Manager must adapt their practices tothe changing expectations of the societies in which they operate. Associetal values, customs, and tastes change, mangers also must change.
Encompass trends in the physicalcharacteristics of a population such as gender, age, level of education,geographic location, income, family composition, and so forth.Changes in these characteristics may constrain how mangers plan,organize, lead and control.
In terms of the general environment, themost rapid changes have occurred in technology. The whole area of technology is radically changing the fundamental ways that organizations are structured and the way that managers manage.