External Environment
The external environment includes all elements existing outsidethe boundary of the organization that have the potential to affect the organization.
The environment includes competitors, resources, technology, and economic conditions
that influence the organization .
The organization’s external environment can be further conceptualized as having
two layers: general and task environments. The generalenvironment is the outer layer that is widely dispersed and affects organizations indirectly. It includes social, economic, legal/political, international, natural, andtechnological factors that influence all organizations about equally. Increases inthe inflation rate or the percentage of dual-career couples in the workforce are partof the organization’s general environment. These events do not directly changeday-to-day operations, but they do affect all organizations eventually. The task
environment is closer to the organization and includes the sectors that conductday-to-day transactions with the organization and directly influence its basic operationsand performance. It is generally considered to include competitors, suppliers,customers, and the labor market .
⠀ Daft, R., Lane, P. (2010).Management(9th ed.). Cengage Learning (P. 64-65)