Title: Internal and External Environment Factors that Influences Organizational Decision Making
Headings: Internal and External Environment Factors that Influences Organizational Decision Making
Internal and External Environment Factors that Influences Organizational Decision Making
Types of Organizational Environment
Internal Environment of Organization
Owners and Shareholders
Board of Directors
Employees
Organizational Culture
Resources of the Organization
Organization’s image/goodwill
External Environment of Organization – Factors Outside of Organization’s Scope
General Environment of Organization – Common Factors that All company in the Economy Faces
Elements of the General External Environment
Political Legal Factors
Economic Factors
Socio-Cultural Factors
Technological Factors
Legal Factors
Environmental / Natural Factors
Demographic Factors
International Factors
Industry/Task Environment of Organization – Industry Factors that are Vital for Business Functions
Elements of the industry or task environment
Suppliers
Customers & Buyers
Competitors & New Entrants.
Regulators
Substitute Products
Strategic Partners
Influence of Internal and Environment on Business
Conclusion

Content: Organization’s image/goodwill. The internal environment consists mainly of the organization’s owners, the board of directors, employees and culture. Owners and Shareholders
Owners are people who invested in the company and have property rights and claims on the organization. Owners can be an individual or group of persons who started the company; or who bought a share of the company in the share market. They have the right to change the company’s policy at any time. Owners of an organization may be an individual in the case of sole proprietorship business, partners in a partnership firm, shareholders or stockholders in a limited company or members in a cooperative society. In public enterprises, the government of the country is the owner. Whoever the owners, they are an integral part of the organization’s internal environment. Owners play an important role in influencing the affairs of the business.