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affect the growth, development and existence of a living being or a business organization. Enudu (1999: 98), citing Onuoha (1991:121) defined an environment as a set of conditions and forces which surround and have direct or indirect influence on the organization. Generally speaking, environmental variables that affect business organizations may be classified into internal and external environmental variables.An organization’s survival is dependent upon a series of exchange and the continual interaction with the environment which gives rise to a number of broader responsibilities to society in general. To understand the business organizational environments, we must borrow some concepts from Systems Theory. One of the basic assumptions of systems theory is that business organizations are neither self-Sufficient nor self-constrained. Rather, they exchange resources with and are dependent on the external.Thus, business organizations take inputs such as raw materials, money, machine, labour, method and energy from the external environment, transform them into products or services and then send them back as outputs to the external environment. Koontz et al (1980:89) maintained that the relationship between a business organization and its environment can be examined in three main ways: First, a business organization can be viewed as importing various kinds of inputs such as man, materials, money and machine. These inputs are then transformed to produce outputs such as products and services. Secondly, in the study of the relationships between business organization and its environment is to focus on those publics which the business organization must service. These publics are, Employees, consumers, suppliers, stakeholders, government and the community where the business organization is located. A third approach is to view the business organization as operating in an external environment of opportunities and constraints which some authorities classified as economic, political, legal, technology etc. Thus, all managers whether they operate in a small or medium or large business organization, take into consideration the elements and force of their external environment. It is necessary for us to discuss the various environment of a business.
9 ELEMENTS OF DIRECT AND INDIRECT ACTION ENVIRONMENT OF AN ORGANIZATION Fig. 1 SocialVariablesTechonolgicalVariablesEconomicVariablesPolitical VariablesThe MediaSpecial InterestGroupsShareholders and the Board of DirectorsTHE ORGANIZATIONCompetitorsCustomersSuppliersGovernmentFinancialInstitutionLabourUnionEmployeesSource: Onuoha: Management (1999:121) ELEMENTS OF DIRECT-ACTION ENVIRONMENT Direct-action elements are elements of the environment that directly influence a business organization’s activities. Some people prefer to refer to “direct-action” as the task environment. The direct-action environment is made up of stakeholder. The stakeholders fall into two categories: External and Internal stakeholders. Stakeholders are defined as individual or groups that are directly or indirectly affected by business organization’s pursuit of its objectives.