BU398 Chapter Notes - Chapter 4: Vertica, Interlocking Directorate, Time Horizon
Document Summary
Organizational environment: all elements that exist outside the boundary of the organization that have the potential to affect all or part of the organization. Includes sectors with which the organization interacts directly and that have a direct impact on the organization"s ability to achieve its goals. Task environment includes: industry, raw materials and market sectors and human resources / international sectors. Includes sectors that do not have a direct impact on the daily operations of a firm but will indirectly influence it. Includes: the government, socio cultural, technology and financial resources sectors and the economic. The growing importance of the international sector means that the environment for all organizations is becoming extremely complex and extremely competitive. Advertising agencies aren"t the only organizations having difficulty adapting to massive shifts in the environment. 2 dimensions the environment influences organizations: the need for information about the environment, the need for resources from the environment.
