Lecture 4: External Environment

Question 1

Def.: Domain

Answer 1

= chosen environment in which the organization operates in
= chosen environmental field of action

Question 2

Def.: Sector

Answer 2

= all sectors, that are affected or affect the domain
= subdivisions that contain similar elements

1. Industry sector
2. Raw Materials Sector
3. Human Resources Sector
4. Financial Resources Sector
5. Market Sector
6. Technology Sector
7. Economic Conditions Sector
8. Government Sector
9. Sociocultural Sector
10. International Sector

Question 3

Task environment

Answer 3

= Includes sectors with which the organization interacts directly and that have a direct impact on the organization’s ability to achieve goals

= It typically includes
- The industry
- Raw materials sector
- Market sector
- Human resource sector
- International sector

Question 4

General Environment

Answer 4

= It includes sectors that might not have direct impact on the daily operations of a firm but will (more or less) indirectly influence it

• Government sector
• Sociocultural sector
• Economic conditions
• Technology sector
• Financial resources

Question 5

International Context

Answer 5

= All organizations face domestic and global uncertainty
= The increasing interconnections represent both opportunities and threats for organizations
= Organizations are becoming extremely complex and competitive