Chapter 3, Problem 2UTC

Summary Introduction

To determine:

The difference between the task environment and the general environment.

Introduction:

Task environment and general environment

An organization’s external environment can be divided into two categories which are the task environment and the general environment.

Task environment is the set of forces that affect an organization’s ability to obtain inputs and dispose of its output. The actions of suppliers, distributors, customers, and competitors five result to the forces in the task environment, and they have a significant impact on decision making. It sometimes includes techniques of production, suppliers, raw materials and market sectors. Some organizations will also have human resources and the international sector as part of this environment. The forces actually lies outside the business but operates within the environment.

General environment is the wide ranging economic, social cultural, technological, demographic, political and legal, and global forces that affect the organization and its task environment. It is the larger environment within which task environment is embedded and it also helps shape the task environment.