This essay discusses whether or not a company should be aware of changes in external environment. It explores different aspects of external environment and its effect on organization.
The importance of external environment Nowadays, companies are immersed in a constantly changing environment. Not only can the internal environment exert a vital influence on an organization, but also the external business environment. The external environment is composed of all the related departments, the economic system, the social system and many others, which is not merely the natural environment (Ian Brooks et al., 2004:4). This essay discusses whether or not a company should be aware of changes in external environment. It explores different aspects of external environment and its effect on organization. The external environment can be a contributing factor in many respects. Considering its complexity, a PEST analysis (stand for political, economic, social,