Organisations in global environment Essay Example | Topics and Well Written Essays - 1500 words

Organisations in global environment - Essay Example External environment is made up of the outside institutions and forces that have a real or potential interest or effect on the ability of the organization to attain its objectives. These institutions include political, competitive, technological and legal (Kalmi & Klinedinst, 2006). The environmental factors have been divided by researchers as specific and general environment. The difference between the two is the level of directness of effects. The specific environment comprises of suppliers, customers, competitors, distributors, government and union. The general environment is composed of some forces like technological, economic, political, environmental, cultural and international. All the above mentioned forces can lead to uncertainty in an organization. They affect the complexities, richness and dynamism of an organization’s environment. The complexity of an environment is the complicated relationship between the forces that the organization can manage. The dynamism of an environment is the changing speed of forces that affect an organization. The environmental riches are the amount of resources that are in support of an organization. The three forces exist together, are mutual and their linking level build uncertainty for the organizations. The transformation into the 21st century is seen as a big change. The world is with no clear borders, where everything is almost prepared in anyplace. With the interference of the national boundaries, it is approximated that the world trade will increase by as much as 1600 percent in 40 years and speed of innovation and the increased level of goods are beyond any imagination. For instance, Sony launching three new products every hour and Disney is making a new product after every 5 minutes. Today there is a period of information or instant exchanges. With media exploration,