ABSTRACT
An organisation’s environment consists of parties or stakeholders like buyers, suppliers, competitors and financiers. This chapter examines the influence that stakeholders and environmental factors have on organisations. It discusses the influence of the following stakeholders: An important aspect of these parties is the extent to which their position is dominant. Environmental influence generates circumstances which organisations must take into careful account. Many organisations find themselves confronted by extremely unstable circumstances which have to be dealt with appropriately and effectively – possibly in the form of significant changes to the products and or services offered, or a revision of pricing strategy to change the pricing position within the market. A clean living environment and a healthy climate are important elements of a healthy economy. Important stimuli for technological innovation come from competition, and the demand for more environmentally friendly goods and services of a higher quality, with a lower cost price, which can be delivered faster and more conveniently.
