The _____ of a firm refers to the forces,institutions and people (i.e. ,the rest of the world)outside its boundary.
A) microenvironment
B) organizational climate
C) organizational organogram
D) external environment

Question

Quizplus · Accepted Answer

The external environment of a firm includes all the factors and elements that are beyond the control of the organization but can significantly affect its operations, performance, and sustainability, such as competitors, suppliers, customers, technology, laws and regulations, social and cultural trends, economic conditions, political forces, and natural resources. The microenvironment, on the other hand, refers to the immediate or direct factors that influence the company's ability to serve its customers well, such as employees, shareholders, distributors, retailers, and partners. The organizational climate and organogram are internal factors that describe the culture, structure, and hierarchy of the firm.

The _____ of a Firm Refers to the Forces,institutions and People