Communication in Business in Changing External Environments Essay example

1134 Words Sep 13th, 2011 5 Pages
1. Describe the three basic characteristics of changing external environments

• Environmental change is the rate at which a company’s general and specific environments change. If the environment is stable, this means that the rate of change is slow; if the environment is dynamic, this means that the rate of change is fast.
• Environmental complexity is the number of external factors in the environment that affect organizations. Complex environments have many environmental factors; simple environments have few.
• Resource Scarcity is the degree to which an organization’s external environment has an abundance or scarcity of critical organizational resources.

2. How do the characteristics of changing environments affect
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4. List the components of the general environment.
The general environment consists of economic, technological, sociocultural, and political/legal events and trends that affect all organizations. Because the economy influences basic business decisions, managers often use economic statistics and business confidence indices to predict future economic activity. Changes in technology, which is used to transform inputs into outputs, can be a benefit or a threat to a business. Sociocultural trends, like changing demographic characteristics, affect how companies run their businesses. Similarly, sociocultural changes in behavior, attitudes, and beliefs affect the demand for a business’s products and services. Court decisions and new federal and state laws have imposed much greater political/legal responsibilities on companies.
5. How do the elements of the specific business environment affect businesses? 5. How do the elements of the specific business environment affect businesses? Each organization also has a specific environment that is unique to that firm’s industry and directly affects the way it conducts day-to-day business. The specific environment of any company can be divided in to five sectors:

• Customers influence the products and services a company offers, the prices charged for those offerings, the company’s reputation, and the sales generated by business operations.

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