The External Environment

The external environment affecting the organization may be divided into two major categories-the general environment and the task environment. The general environment consists of those factors that may am have an immediate direct effect on operations but nevertheless influences the activities of the firm. These include such factors as technology, sociocultural  and political factors, general economic conditions and so on. The task environment, on the other hand, consists of those factors that directly affect and are affected by the organization’s operations. These factors include suppliers. customers, competition regulators and so on. Let us now understand the impact of all these factor in brief.