The external environment is everything outside the walls of the organization. It is the wider society wherein the organization's employees come from and continuously interact with. It is a broader culture that is comprised of assumptions, values, norms, and behaviors. It is an erratic economy in which the organization has found an opportunity to do business and will continuously seek for opportunities to gain or maintain competitive advantage, competencies, resources, and strategies. It is a …showed first 75 words of 372 total…

…showed last 75 words of 372 total…their needs and wants may or may not be satisfied. This prevents conflict in the sense that employees will not end up being disgruntled if their expectations are too high or working below standard because their expectations are too low. Knowing the external environment also allows the organization and its employees to be flexible and to easily adapt to the changing structures and processes of not only the business itself but within themselves as well.