Environment Definition: The organisational environment is technically anything which is external to an organisation and can affect it in anyway, causing the organisation to react to this change. Fro example if a competitor lowers their prices, then an organisation in the same market may have to react by also lowering its prices, or saying that they have a better quality product which could help brand image and in turn sales, more than selling for cheaper.

As stated above, the environment an organisation is in can be anything which affects it externally, therefore we can build up an environment around an organisation by determining what that organisation does, how it does it, what it needs to do it and many more things like this. Over the years organisations have had to worry about their environment more and more, mainly due to the expansion of international borders.

Originally a company, say in Greece, would have only had to worry about competitors in their own countries, after they joined the European Union then this business boundary would have expanded to the whole of Europe, and in turn American as they gain more global appeal. Although this has made concentrating on the environment even more vital, it had also created lots more opportunities, many of which don’t really fit into this section, but some will, such as more opportunity to join up with companies of the same nature in different countries, which will help take on the global market without having to spend as much money on market research etc.

Key Learning Points

  1. Define the Organisational Domain?
  2. Define what culture means within the organisation environment?
  3. What is uncertainty in a business?
  4. What are the four main resources?