Question

Explain why you think that it is important for an organisation to understand its external environment. Using examples, explain what are the external elements that the company needs to analyze.

Elaborate more please and provide insightful analysis

Answer 1

Explain why you think that it is important for an organization to understand its external environment.

Ans. - The external environment is a very important thing for an organization to grow.

There are many external factors like -

1> Competitor's business strategy - The competitors always try to take a good place in the market by giving best customer service, employee's promotion, making a different type of products etc. So in every time the manager/CEO of an organization must follow their competitor's plans and take steps to do better from them.

2> Advanced technology - Every organization should be aware of technology changes. Every time the new technology has launched and the managers' have to be updated for more business growth.

3> Employee strength - Every CEO/Managers have to keep a close eye on every employee performance. They have to try by paying a high salary to most eligible employees. As that employees are always looking for a better chance and if they get that chances form the present organization then they will never chance the organization. The managers also have to try to attend different college/university training programs to get best suitable candidates. These candidates will help to make a good employee strength for an organization.

These are all external elements that the company needs to analyze.