The internal and external environments interact to affect managers and organizations

Essay by raddieUniversity, Master'sB, July 2005

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"With the entire world as a market and national borders becoming increasingly meaningless, the potential for organizations to grow and expand is almost unlimited" (Robbins, 2003, p. 101), and business is increasingly international due to increasing sales and accessing resources(Wild, 1999). In such circumstance, organizations must learn how to survive and prosper in a global environment that is highly dynamic and unstable. Managers in this setting not only deal with a set of social , economic, legal and political factors in the home nation, but with entirely different set of these in each country of operation. International management involves balancing a firm's internal environment forces which is a system of shared meaning and beliefs within an organization that determines employees act with external environmental forces which is outside institutions or forces that potentially affect an organization's performance (Baird, Post, Mahon, 1990). The internal environment such as human resource policies, organizational culture, and production methods affects the manager's ability to achieve certain outcomes.

However, it is not only the organizational culture that plays a significant role (Robbins, 2003). It interacts with the external environment such as social culture, technology, economic to affect the organization's performance in the global environment. The focus on this essay is on the interaction between some of the factors in internal and external environment in the global environment and its impact on organizations and managers.

All organizations, even monopolies, have one or more competitors. In the global environment, the competitors which are one factor of the specific environment are even more and stronger. Managers cannot ignore the competition. They must monitor and prepare to respond, such as change the price, services, and develop new products (Robbins, 2003). Mercedes-Benz always is thought as serious, not youthful and extremely expensive in the U.S. market at the beginning. Research among...