X
Welcome to the world's #1 website about management.
Why register?
- Discover 1000s of knowledge centers.
- Learn from colleagues and experts.
- By signing up you get full access to all knowledge centers and discussion forums, including PEST Analysis.
Log in
|
Direct and Indirect External Environment of the Firm
E Saruchera, Finance & Admin Manager, Malawi, Member
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 environme...
|
|
|
