External Environment (Mega or General Environment)

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">External environment refers to the major factors and forces outside the organization that have the potential to significantly affect the performance of an organization&period; External environment is divided into two parts i&period;e&period; mega environment or general environment and <a href&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;management&sol;principles-of-management&sol;632&sol;external-environment-specific-or-task-environment&period;html" target&equals;"&lowbar;blank" rel&equals;"noopener">specific or task environment<&sol;a>&period;&&num;160&semi; External environment can significantly influence the effectiveness of an organization to large extent&period; The explanation of mega or general environment is given below&period; <&sol;p>&NewLine;<p align&equals;"justify">&&num;160&semi;<&sol;p>&NewLine;<h3>General Environment<&sol;h3>&NewLine;<p align&equals;"justify">&NewLine;General environment or mega environment is an important segment of external environment&period; The reason it is called mega environment is that it only refers to the broad trends and conditions in the societies within which an organization operates&period; The major elements of general environment are&colon; legal-political&comma; economic&comma; technological&comma; international and socio cultural&period; Since such elements are beyond the ability of a single organization to affect or alter them therefore they cannot be influenced in the short run&period;&&num;160&semi; The elements of general environment are explained below&period; <&sol;p>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p> <strong>•&&num;160&semi;&&num;160&semi;&&num;160&semi; Technological Element<&sol;strong><&sol;p>&NewLine;<p align&equals;"justify">&NewLine;It refers to the current state of knowledge about the production of goods and services&period; Technological environment can positively or negatively impact the overall success of an organization&period; Different industries such as automobile&comma; telecommunication&comma; computer etc&period; are greatly affected by frequent changes in technology&period; Therefore in order to remain competitive&comma; organizations must stay abreast of current technological developments&period; <&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p> <strong>•&&num;160&semi;&&num;160&semi;&&num;160&semi; Economic Element<&sol;strong><&sol;p>&NewLine;<p align&equals;"justify">&NewLine;Prevailing economic conditions have great impact on the management practices in an organization&period; Different economic factors such as inflation&comma; interest rates&comma; changes in per capita income&comma; stock market fluctuations etc affect the profitability and success of an organization&period; For example if the per capita income of people decreases&comma; it will decrease their purchasing power which will ultimately lower the demand for goods and services&period; Due to lower demand&comma; prices fall and the profit of an organization shrink&period; <&sol;p>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p> <strong>•&&num;160&semi;&&num;160&semi;&&num;160&semi; Legal-Political Element<&sol;strong>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;