Environment - improved and updated. An example of an...

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Environment The environment is the world in which the organization operates, and includes conditions that  influence the organization such as economic, social-cultural, legal-political, technological, and  natural environment conditions. Environments are often described as either stable or dynamic. In a  stable environment,  the customers' desires are well understood and probably  will remain consistent for a relatively long time. Examples of organizations that face  relatively stable environments include manufacturers of staple items such as detergent,  cleaning supplies, and paper products.  In a  dynamic environment,  the customers' desires are continuously changing—the  opposite of a stable environment. This condition is often thought of as turbulent. In addition,  the technology that a company uses while in this environment may need to be continuously 
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Unformatted text preview: improved and updated. An example of an industry functioning in a dynamic environment is electronics. Technology changes create competitive pressures for all electronics industries, because as technology changes, so do the desires of consumers. In general, organizations that operate in stable external environments find mechanistic structures to be advantageous. This system provides a level of efficiency that enhances the long-term performances of organizations that enjoy relatively stable operating environments. In contrast, organizations that operate in volatile and frequently changing environments are more likely to find that an organic structure provides the greatest benefits. This structure allows the organization to respond to environment change more proactively....
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This note was uploaded on 11/18/2011 for the course MGMT 4375 taught by Professor Eixmann during the Fall '11 term at Texas State.

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