chapter  3
38 Pages

Assessing the Environment

The globalization of markets and interdependence of economies have continued to increase over the years. This has resulted in increased competition, revolutionized technologies, rapid changes in organizational structure, diversity of the workforce, new demands, and changes in market and economic conditions. These developments also add to the complexity of the organizational environment. The environment of an organization, or of any system, includes all of the circumstances or influences that surround and/or affect it. The environment is segregated into two components, the internal and the external, and refers to all variables that affect the strategy of an organization.1