How do organizations respond to influence of External Environment?

How do organizations respond to influence of External Environment?

The environment of an organization consists of it surrounding anything that affects its operation favorably or unfavorably. The external environment includes the areas of General, Industry, and Competitor environment. Opportunity is a general environment condition that is exploited helps a company achieve strategic competitiveness. The general environment is the broader social dimensions that influence an industry and the firms within it.

If an organization wants to be successful then it must first consider the environment in which it operates. And then the organization must align its strategy with that environment.

However, the environment covers a lot of territories – essentially everything outside the organization’s control. To be practical, an organization must focus its attention on the parts of the environment that will most affect its business. External environment may influence the availability of critical resources, i.e. suitable employees or interested customers.

To be successful, an organization must systematically analyze the factors of the external environment. And then, it will take poppers steps, actions, and strategy to take advantages of the external environment. It will also take proper steps, actions, and strategy to face the threats of the external environment. A company faces a lot of opportunities and threats to which it must respond, and this response helps determine its financial returns.