The Environment of an Organization

Topics: Barack Obama, Jeffrey R. Immelt, Global warming Pages: 2 (711 words) Published: June 25, 2013
The environment of an organization refers to the forces that can make a business impact, forces made up of opportunities and threats. Organizations do not exist in isolation – they work within the overall environment. These environmental factors can be divided in to two main parts: internal environment and external environment. Further, these broad categories can then be subdivided into smaller subcategories. The impact of three subcategories will be discussed: political-legal forces, informational resources, and financial resources. The Wall street Journal article dated September 6, 2011, “Immelt and GE, 10 Years In,” illustrates these factors with concrete examples. The article focuses on how GE, under the guidance of its present CEO Jeff Immelt, is trying to meet the challenges of the market in an ever-changing world of business, in the midst of economic turmoil and political unrest. Political-Legal forces can have profound consequences for the success of an organization. The political situations or the “system” of a country can determine the organizations future. Better policies can promote long-term stability, and lead to a good business environment for any organization. “Mr. Immelt spends a significant amount of time on external activities. Most notably, he chairs President Barack Obama's jobs council. The position has generated domestic criticism—GE has expanded overseas while cutting back jobs in the U.S.—but carries weight with Mr. Immelt's international customers.” Although this could be good for GE’s bottom line, this could have a potentially negative effect on GE’s standing in the US. Some could ask if he is supposed to be creating jobs for the US on one hand, or giving them away to foreign countries on the other. Informational resources enable an organization to know what is changing and how it is changing, thereby making adaption to the change possible. According to the article, “GE has sworn off major acquisitions and instead is...
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