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Environments and Organizations

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Discuss the following topic:

Environments shape organizations. In turn, organizations also shape the environments in which they interact. Organizations, in part, also choose which environments they enter and exit, choose which coalitions are most desirable, and determine the contexts in which they function. Explain how organizations relate strategically to their environments.

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This solution discusses how organizations relate to environments.

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First subheading: Environments shape organizations.

Our environment shapes every aspect of an organization. In our environment (the community), employees are hired and fired for specific organizations. These same employees, along with other community members, purchase the products that are produced. An organization is affected by the environment that the organization is located. A firm can only be successful if the environment is prosperous. "Environmental interchange is continuous. A firm sends its product out to customers, and the customers return revenues to the firms when they buy its product. Employees are hired from the environment, and federal laws impose certain constraints on how the firm can treat them. In fact, this relationship is so complex and so critical it is well to note various sectors of the environment with which this interaction takes place".

Technology can play a large role in the success of an organization. If an organization is in an environment that does not have technological capabilities, it will be impossible for the organization to conduct business on other environments outside their immediate outreach. "In the United States, a business firm can count on a larger number of ...

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