What does the specific environment of an organization include?

The specific environment of an organization encompasses external factors that directly impact its operations and performance. This includes elements such as suppliers, customers, competitors, and regulatory agencies. An organization’s specific environment influences how it responds to market trends, customer demands, and competitive pressures, making it critical for operational strategy and decision-making.

While internal mechanisms and policies, as well as economic resources and capabilities, are important components of how an organization functions, they fall under the broader category of the general environment. The specific environment is more concentrated on factors that are actively influencing the organization from the outside, rather than internal structures or resources. Understanding the specific environment is essential for effective management, as it helps leaders anticipate changes and adapt strategies to thrive in their market.