There are many ways to analyze where your company or organization stands plus there are also ways where you can compare yourself with your competitors and find out your success rate or standing. However one of the ways is to compare your organization’s relationship with the external environment. This has been done many times in the past by some of the most successful organizations around the globe and they have achieved drastic results by following the recommendations. The three components of firm’s relationship with the external environment are strategy, organization and relationship. The major aspect of these three components is the fact that they provide better results if studied together rather than analyzing each one in isolation. It is essential for any organization to keep these components bounded by a relationship and they should remain balanced, if the balance or relationship is shifted then the organization faces problems and loss in revenue. These three components have inter-related variables that must have a balance regardless of the change in the three component’s bonding. The relationship triangle present in between these three components is generally known as the Environment strategy organization nexus. It is very important to study the depth of these relationships and the triangle. To make sure that the balance remains intact organization have gone into depths of the triangle and are trying to find new and better ways to maintain the balance. The strategy simply focuses on the fact that any organization should first study the environment then create a business strategy and then shape the organization.
The modern day environment is very important in determining the success of a firm. Organizations in the present time focus on multiple factors while progressing ahead. The most important thing to be noticed here is that the organizations have turned towards customer oriented production. This is one effect of the environment on the organization’s internal structure and strategy. There are basically two types of environment, first on is the internal environment of the organization and the second is the external environment. The current successful organizations that are operating around the globe have given immense importance to these two There are basically two types of environment, first on is the internal environment of the organization and the second is the external environment environments while making a business strategy. Therefore it is important for any firm who tends to step into an international market or plans to expand to focus its internal and external environment.
If a company starts to operate in a foreign country it is very important to understand the external environment before even planning to operate there (Meyer & Scott, 1991). There might be a demand of your product in the foreign country but that’s not enough, you have to properly plan that how will you market out your product to the customers and for that it is very essential to understand your customer preferences and the culture that prevails in the foreign country. Making advertisement in the foreign country also requires very special ability, and usually in these cases organization uses the local talent to come up with new and innovative ideas. Identifying your competitors in a foreign country is very important and is part of the understanding of the external environment. Another very important aspect is the market condition of a country, it is very important to understand the pros and cons of starting production somewhere this also comes under the understanding of the external environment.
Meyer J. W. & Scott W. R. (1991) Organizational Environments: Ritual and Rationality.Sage Publications, Inc.