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External Environment in an Organization

Describe the external environment in an organization. Please provide references.

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The external environment in an organization can be discussed as the environment which is not in control of the firm and management. All these factors affect the performances of the business organizations in a direct and indirect manner. The external environment can be divided into two different environments such as industry specific and general. The industry specific environment comprises competitors, customers, suppliers, substitutes of the products and services, etc.

As the company cannot take control over competitor's activities, strategies and performance, it directly increases pressure on the company's operations and plans to achieve a leading position and defeat competitors (Wheelen & Hunger, 2010). A high number of competitors creates more pressure on the company to influence its profitability level. Apart from this, customers and suppliers both have bargaining ...

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External environment in an organization is describe.