What is the Importance of external and internal environments?

Answer 1

Thee are two types of driving forces (environments) that affect the way an organization operates in either a positive or negative way. Internal driving forces and external driving forces. Internal driving forces are those types of things, events, situations, that occur within an organization and effect it in either a positive or negative way. Typically, the internal forces are things that occur within the organization and are by-and-large under the control of the organization. Example, does the organization have up to date technology that has the capacity to hold power programs that can help the organization. Or, are they working with an old antiquated legacy system that is slow, crashes frequently, etc. This effects the organizations day-to-day operations. It's something that in internal and under the control of the organization. Even the culture of the organization effects the way it operates. In other words, are the employees happy, do they come into work energized, or do they come to work dragging themselves in because it's Monday and doing cartwheels out the door because it's Friday. This effects the way the organization operates in either a positive or negative way. Once again it is an internal event and under the control of the organization.

External driving forces (environment) are those things, situations, events, that occur outside of the organization and effect it in either a positive or negative way. Example, the overall economy. This occurs outside the organization and by-and-large out of the control of the organization. In other words, are people spending money, or stashing it away because of financial concerns. This effects the organization. Another example could be changing Demographics. Another, even weather. Weather can effect organizations such as farmers, ski resorts, catastrophes such as flooding, earthquakes etc. can effect all organizations. This occurs outside of the organization, and beyond the control of the organization. Still, it could effect it in either a negative or positive way. Another important external driving force would be competition. What is the competition doing, to gain more of the market share. It's occurring outside of the organization, out f the control of the organization, can effect it in either a positive or negative way. This is why informational resources are critical to the success, stability, and survivability of organizations. Thus, the importance of internal and external environments of any organization and how they are handled determines the organizations stability and very survivability.