What are the various environmental factors that a manager should consider in an organization?

Environment is a collectivity of all factors within the control of individual business and beyond the control of individual business. Environment includes all the conditions, circumstances, and influences surrounding the total organization or any of its part. The environment may be

  • External and
  • Internal

EXTERNAL ENVIRONMENT

It greatly influences the working of every business. Its major components are:

  • Economic- capital, labor, suppliers, consumers and customers
  • Technological
  • Social
  • Political
  • Ethical

INTERNAL ENVIRONMENT

It is considered with the day to day work of the various departments of an organization. They may be

  • Financial aspects
  • HR policies and procedures
  • Production activities
  • Marketing and selling activities
  • Information system
2
Susmita Sah
Jan 13, 2022
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