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Questions and Answers
What is the organisation environment composed of?
Which of the following is an example of a macro environmental factor?
What is the primary function of understanding the organisation environment?
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?
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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?
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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.
