Podcast
Questions and Answers
What is the organisation environment composed of?
What is the organisation environment composed of?
Which of the following is an example of a macro environmental factor?
Which of the following is an example of a macro environmental factor?
What is the primary function of understanding the organisation environment?
What is the primary function of understanding the organisation environment?
Which of the following is an example of an internal environmental factor?
Which of the following is an example of an internal environmental factor?
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What is the impact of the organisation environment on an organisation's strategy and goal-setting?
What is the impact of the organisation environment on an organisation's strategy and goal-setting?
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Which of the following is NOT a type of external environmental factor?
Which of the following is NOT a type of external environmental factor?
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What is the primary benefit of understanding the organisation environment?
What is the primary benefit of understanding the organisation environment?
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What is the organisational structure an example of?
What is the organisational structure an example of?
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Study Notes
Organisation Environment
Definition
The organisation environment refers to the external and internal factors that influence an organisation's operations, performance, and decision-making.
Types of Organisation Environment
External Environment
-
Macro Environment: broader societal factors that affect the organisation, such as:
- Economic factors (e.g. recession, inflation)
- Political and legal factors (e.g. government policies, laws)
- Social and cultural factors (e.g. demographics, values)
- Technological factors (e.g. advancements, innovations)
- Environmental factors (e.g. climate change, natural disasters)
-
Micro Environment: specific factors that affect the organisation's immediate operations, such as:
- Suppliers
- Customers
- Competitors
- Market trends
Internal Environment
- Organisational Culture: shared values, beliefs, and norms that shape an organisation's identity and behavior
- Organisational Structure: formal and informal relationships, roles, and responsibilities within the organisation
- Resources: human, financial, and physical resources available to the organisation
Impact of Organisation Environment
- Affects an organisation's:
- Strategy and goal-setting
- Performance and productivity
- Decision-making and problem-solving
- Adaptability and innovation
- Survival and competitiveness
Importance of Understanding Organisation Environment
- Enables organisations to:
- Identify opportunities and threats
- Develop effective strategies and responses
- Adapt to changing circumstances
- Improve performance and competitiveness
Organisation Environment
Definition
- Organisation environment refers to internal and external factors affecting an organisation's operations, performance, and decision-making.
Types of Organisation Environment
External Environment
-
Macro Environment: broader societal factors affecting the organisation, including:
- Economic factors (e.g., recession, inflation)
- Political and legal factors (e.g., government policies, laws)
- Social and cultural factors (e.g., demographics, values)
- Technological factors (e.g., advancements, innovations)
- Environmental factors (e.g., climate change, natural disasters)
-
Micro Environment: specific factors affecting the organisation's immediate operations, including:
- Suppliers
- Customers
- Competitors
- Market trends
Internal Environment
- Organisational Culture: shared values, beliefs, and norms shaping an organisation's identity and behavior
- Organisational Structure: formal and informal relationships, roles, and responsibilities within the organisation
- Resources: human, financial, and physical resources available to the organisation
Impact of Organisation Environment
- Affects an organisation's:
- Strategy and goal-setting
- Performance and productivity
- Decision-making and problem-solving
- Adaptability and innovation
- Survival and competitiveness
Importance of Understanding Organisation Environment
- Enables organisations to:
- Identify opportunities and threats
- Develop effective strategies and responses
- Adapt to changing circumstances
- Improve performance and competitiveness
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Description
Explore the internal and external factors that impact an organisation's operations and decision-making. Learn about the macro and micro environment that influence business performance.
