The internal and external environment of the organization: the definition of the relationship

The activity of any business entity is influenced by the internal and external environment of the organization, through which the actions are determined, as well as the ways of their functioning for a long-term period. All this directly depends on the subject's ability to adapt to certain expectations and specific requirements of the environment.

So, today two subspecies of this concept are known: the internal and external environment of the organization. Internal factors can be attributed to the main elements, as well as the subsystems of the structure of the enterprise itself, capable of ensuring the flow of processes in it. The concept of the external environment of the organization is represented by a combination of subjects, conditions and factors that, even outside its borders, can influence its general behavior.

What is the environment of the enterprise? This is a set of various uncontrolled forces, taking into account which companies should carry out their activities. This term consists of a macro- and microenvironment (external and internal environment of the organization). At the same time, the internal structure is represented by objects that are directly related to both the business entity itself and its various structural elements. It is represented by a combination of technological, labor and economic factors, managed and regulated to a greater extent than the external environment. The internal environment at the enterprise determines the organizational and technical conditions of work, which can be attributed to the results of decisions taken in the management.

The internal and external environment of the organization must be constantly analyzed in order to identify the strong and weak properties of all aspects of its activities. This is necessary for the timely use of additional opportunities and the acquisition by the enterprise of some internal potential. Also, the identification of weaknesses helps to prevent the aggravation of the threat and danger.

The internal and external environment of the organization are in close interconnection. Their indicators are significantly influenced by the economic state of society, which reflects the level of accessibility of money and labor resources, as well as the interest rate on invested capital. We should not forget about the prices of raw materials, materials and services.

There are political factors that are somewhat dependent on the ruling party in the state. Also important role in this issue is the policy of the President and the presence (or absence) of military actions.

A variety of the external environment is the cultural environment, the main elements of which can be attributed to culture, education, religious traditions and moral norms.

The internal and external environment of the organization unites various factors that manifest themselves independently of the activities of the business entity with the provision of significant impact on it. So, external factors can be attributed elements of direct impact, which can have a direct impact on the activities of the organization.