The organisation and the environment in which it operates in are not closed systems because they influence each other. The organisation thus cannot be successful if it is not in step with its environment. The simple fact that the organisation interacts with the environment means that the organisation is is acting in an open system and will be both affected by the environment and also impact on the environment. This means that the organisation draws its inputs such as human, financial and informational resources but to mention a few from the environment and distributes its products and services back to environment. This therefore leads us to the conclusion that the external environment definately ifluences the conduct of the organisation's business.
The organisation is influenced by an number of factors in the external environment namely, economic,socio-cultural forces, political forces, ecologicalforces, labour unions, competitors and customers.
Firstly the socio-cultural environment is concerned with the society's attitudes and cultural values.
When the organisation conducts its business it will need to do so in a way that respects and bears in mind the fact that the soci-cultural environment is characterised by different people and therefore it has to conduct it business in a way that respects and accomdates this environment. Failure to do so can result in bad publicity, losses and even the folding up of the business due to public pressure.
The organisation due to new trends in the socio-cultural environment are creating a different type of consumer and thus a need for different products, different services and consequently different strategies for its conduct. In a nutshell, the organisation has to conduct its business in a way that is adaptable to socio-cultural changes and environments.
The technological environment also has a bearing on the conduct of the organisation. Technological changes affects many aspects...