logo

Direct and Indirect External Environment of the Firm

Knowledge Center

PEST Analysis
Knowledge Center

Translatemore

Forum
6
E Saruchera
Finance & Admin Manager, Malawi

Direct and Indirect External Environment of the Firm

What is needed to survive in dynamic environment.
The world is fast changing and as such if organisations are to survive there is need to adapt to the external environment. Organisational leaders have to closely monitor developments in the business environment in which they are operating. Key considerations when looking at the (external) environment is to separate them into two, being: direct and the indirect environment:
- The DIRECT ENVIRONMENT relates to those elements of the external environment which have a direct impact on the organisation. The direct environment includes the competition, buyers, suppliers and interest groups like employee unions and pressure groups. Managers of organisations must pay attention to developments in the direct environment and adjust accordingly.
- The INDIRECT ENVIRONMENT includes political, inflation, economic variables that may impact the organisation too, but in a more ambiguous, unintended way.
Failure to adapt to the environment threatens existence of the organisation. Managers of organisations need to keep an eye on both 2 categories of the external environment, and implement strategies that allow the organisation to survive and benefit.

 

More on PEST Analysis:
Summary
Discussion Topics
topic PEST Analysis for a Country
topic External Environment of a Service Company
topic PEST Analysis is Complementary to SWOT Analysis
🔥 PEST Analysis: a Mandatory Component of Strategic Planning and Marketing!
topic Market and System Risk in PEST Analysis
topic Extension of PESTEL + C (=Competitors) Analysis
topic Advanced form of PEST: PESTELEM Analysis
topic Actions in Unfavorable External Environment?
👀Direct and Indirect External Environment of the Firm
topic How to Conduct a PEST Analysis? Main Steps and Tips
topic The SPELIT Power Matrix
topic Improved PESTLE Analysis: SATERPLIDE Analysis
topic PEST Analysis on Retail
topic Other Marketing Environment Tools
topic History of PEST - Origins and Author
topic Interaction Between an Organization and Its Energy Environment?
topic Environmental Factors in PESTLE
Special Interest Group

SIG Leader

Do you know a lot about PEST Analysis? Become our SIG Leader



top

More on PEST Analysis:
Summary
Discussion Topics
topic PEST Analysis for a Country
topic External Environment of a Service Company
topic PEST Analysis is Complementary to SWOT Analysis
🔥 PEST Analysis: a Mandatory Component of Strategic Planning and Marketing!
topic Market and System Risk in PEST Analysis
topic Extension of PESTEL + C (=Competitors) Analysis
topic Advanced form of PEST: PESTELEM Analysis
topic Actions in Unfavorable External Environment?
👀Direct and Indirect External Environment of the Firm
topic How to Conduct a PEST Analysis? Main Steps and Tips
topic The SPELIT Power Matrix
topic Improved PESTLE Analysis: SATERPLIDE Analysis
topic PEST Analysis on Retail
topic Other Marketing Environment Tools
topic History of PEST - Origins and Author
topic Interaction Between an Organization and Its Energy Environment?
topic Environmental Factors in PESTLE
Special Interest Group

SIG Leader

Do you know a lot about PEST Analysis? Become our SIG Leader

Knowledge Center

PEST Analysis
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2023 12manage - The Executive Fast Track. V16.3 - Last updated: 1-10-2023. All names of their owners.




12manage is looking for BA/MBA students. More info.