External Environment (Specific or Task Environment)

•    Competitors

Competitors refer to those organizations that either offer or have a potential to offer rival products or services. It means that not only the existing rivals are threat to the success of organization but the potential newcomers could be disastrous too.  Competitors in term of better pricing, new products, quality services etc represent an environmental force that managers must monitor along with the competitive scene for potential newcomers.

•    Pressure Groups

Pressure groups refer to the special-interest groups that attempt to influence the actions of organizations. Such groups have the potential to influence the success of organization therefore managers have to be careful in their decisions and actions. Examples of pressure groups are: MADD (mother against drunk driving) which has pressurized the bar and restaurant industries. Similarly PETA’s (People for the Ethical Treatment of Animals) has pressurized food restaurants over their handling of animals during the slaughter process. The power of pressure groups changes with the change in social and political attitudes. Therefore organizations have to continuously monitor the major shifts in the society.