The Firm and Its Environment

Factors or elements outside the organization which may affect either positively or negatively the performance of the organization

seeking for and sorting through data about the environment

general business environment pertaining to inflation, rate of interest, people spending habits

general business environment which includes gender, age, education level, number of family members, geographic origin

business environment which is composed of its resources, research and development, production, procurement of supplies and the products and service it offers

parties who are likely to be affected by the activities of the organization

Adating to environmental uncertainties must start with developing a________

known as business forecasting

other term for general environment

process of measuring or comparing own’s product or services and practices with those of the recognized industry leaders in order to identify areas of improvement