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: The internal environment of an organization consists of the conditions and forces that exist within the organization. Internal environment {sometimes called micro-environment) portrays an organization’s ‘in-house’ situations. An organization has full control over these situations. Unlike the external environment, firms can directly control the internal environment. Internal environment includes various internal factors of the organization such as resources, owners/shareholders, a board of directors, employees and trade union, goodwill, and corporate culture. These factors are detailed out below. External Environment of Organization