The paper “ General and Specific External Environment That Impact an Organization” is a fascinating variant of the assignment on management. These are the components that exist outside the organization, but they have a significant influence on the organization’ s growth and survival. These components are economic, legal, political, socio-cultural, and, technical forces. 2. Assess the impact components of the general external environment on the organizationThese components determine the environment the organization operates in. Economic components are those factors that determine the economic performance that affects a company director and has long term effects on a company for example inflation in the country of operation or the great recession. Political components refer to the extent a given government can affect the operations of any organization.
Some governments may impose strict taxes or trade tariffs which may affect the ultimate price of the product. Social factors help an organization understand the vital environmental determinants like cultural trends and demographics. Technical components pertain to the technology used in organizations that influence innovations and thus may affect the operations of the organization. The technical awareness of the company is paramount if it has to survive. Legal components affect the business environment in countries of operation.
Thus for organizations to survive the external environment they have to adhere to consumer laws and safety standards3. Specific external environment which impacts on an organizationThese are the components which fall under a general external environment which are more specific in natureCompetitorsCustomersLabor environmentOwnersSuppliers and partnersRegulators4. Assess the Impact of specific external environment on an organizationThough these components have an indirect impact on the organization’ s wellbeing but are fundamental if an organization has to survive. Assessing the impact of these components gives an organization insight on the factors that give opportunities to the organization while acting as threats to an organization