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    External Environment & Organization Design

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    How does the external environment influence organization design? Using your experience , how does the decision to enter an entirely new market affect the design decisions you as a manager make?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:18 pm ad1c9bdddf
    https://brainmass.com/business/business-management/external-environment-organization-design-272991

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    The external environment is composed of the following forces:
    1. Directly interactive - owners, customers, suppliers, competitors, employees and their unions
    2. Indirectly interactive forces - political and legal, sociocultural, economic, technological, and global influences. These forces will impact the organization more depending on the nature of the business. The interactive nature of an organization depends on its external environment.
    An organization design is used to create decisions and procedures that may affect amendments to the Organizational Structure of the company. The external environment greatly affects the decisions in strategic organization design. The business world is very competitive as shown in the rapid changes in the market such as technologies, new products, business models, and distribution patterns. It is very important for managers and leaders of organizations to understand how these changes go about and learning on the skills involved in organization design is also essential. The development of an effective organization design is unending and continuous because the competitive ...

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    The solution explains how external environment influence organization design.

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