In Your Opinion Which General Environmental Force Is Creating the Most Uncertainty for Organizations in 2009?

Topics: Financial crisis, Recession, Economics Pages: 3 (1016 words) Published: September 23, 2012
Most if not all organizations effectiveness is influenced by its external environments. This is where major forces beyond the organization, influence the potential accomplishment of its products or services. However we must be mindful that potentially successful organizations will only succeed to a certain degree, unless their internal environment is compatible with their external environment (Bartol I. 2008, p.76). Environmental assessment effectively prepares organizations to acclimatize to environmental uncertainty, minimizing the undesirable forces. This assessment is vital in developing and understanding the external processes, such as forces in technological, economical, legal-political, sociocultural and international elements (Bartol I, 2008, p.77).. This essay will outline the importance of each element and will indicate which environmental force is generating the most uncertainty in 2009.

External environments comprise of two main segments: the general environment and the task environment. The general environment consists of five major elements or forces: technological, economical, legal-political, sociocultural and international (Bartol I. 2008, p.76).The five forces reflect major external trends and conditions whereby organizations ability to alter them directly in the short term, is relatively limited. These five elements have become more sophisticated as the global economic situation constantly evolves. Ultimately all five forces can have an impact on the success of its products and services and will expand on two of these elements.

Firstly, Economical element plays a major part in organizations structure and planning: including production, distribution and consumption. The economical element is partially controlled by the organizations planning however there are also uncontrollable economic factors such as inflation, interest rates and recessions (Bartol I. 2008, p.79). This is proven by the present financial crisis in the US...
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