BU398 Chapter Notes - Chapter 4: Competitive Intelligence, Business Intelligence, High Tech
Document Summary
Organizational environment: defined as all elements that exist outside the boundary of the organization that have the potential to affect all or part of the organization. The environment of an organization can be understood by analyzing its domain within external sectors. Domain: is the chosen field of action. It is the territory an organization stakes out for itself for its products, services, and markets served. Sectors: subdivisions of the external environment that contain similar elements. Ten sectors can be analyzed for every organization: industry, raw materials, human resources, financial resources, market, technology, economic conditions, government, sociocultural, and international. General environment: the general environment includes those sectors that might not have a direct impact on the daily operations of a firm but will indirectly influence it, includes: the government, sociocultural, technology, financial resources, and the economy. Environment influences organizations in two essential ways: (1) the need for information about the environment and (2) the need for resources from the environment.
