Answer to Question #122848 in Management for Allan

Question

Citing examples where appropriate, discuss how the external environment influences the
operations of an organization.

Answer 1

The external environment plays a crucial role in shaping the daily operations of an organization. To keep the business ahead of competition, managers must always adjust their strategies to reflect the external environment in which their business operate. Further, the organization must react to external environmental factors like government interventions,the economy, technological changes, and competition by undertaking environmental scanning to keep up its flow of operations.