Business

3 Pages 707 Words

To be able to acknowledge the difference between the Internal and External environment of a business, we must first understand the meaning of the two worlds. The two environments allow a business to flourish by focusing on the strong points of their surrounding and their limitations set by the management, board of directors, or even the government’s influence. The Internal Environment consists of conditions and forces which are within the organization. The External Environment is everything outside an organization’s boundaries that might affect the organization.

When looking into a business through the lens of an external environment, the first two facts which will stand out are the two areas which include the General Environment and the Task Environment. The General Environment is known for its set of dimensions in an organization involving its surroundings which create the overall context of the company. These dimensions consists mainly of economical, technological, Sociocultural, international and political legal. The economical dimension relates to the vitality and health of the economic system in which the organization operates. Not too far behind is followed by the technological dimension, which involves the methods available for converting resources into products or services. When a company has established itself well in the beginning phase, involvement of customs, mores, values, and demographic characteristics of the society in which the organization function become a stronger issue. This is referred to the sociocultural dimension. Followed by which involves the extent to which an organization is involved in or effected by business in other countries called the international dimension. The factor which ties all these aspects in the General Environment is the Political Legal dimension. This is more of the heavy involvement of the government’s regulations towards a business and also the relationship between the business ...