BUS 485 Topic 2 DQ 2

Describe the elements of an organization’s external environment. Why is it important to understand the external environment?

Customers, Government, Economy, Competition, and Public Opinion are all components of an organizations external enviornment. These five points each have something to do with factors to a company typicaly somewhat outside an organizations immediate controll, for example the economy can affect purchase decisons of a client or the organizaiton its self and thusly affect its profitability, or governmernt regulations can come in to change the aspects of that organizations business. As such it is essential to know and understand each of these five points and know how they may affect your company and how your company interacts with these as well. You can influence the customers aspect somewhat by offering competitive and quality service and products for example, this also in turn might affect your public opinion of which you have some control.