Dynamic Environment Analysis

Organizations exist in a dynamic environmental, consisting both specific and general environmental forces. Describe what is meant by the specific and general environments within which organizations operate. Provide ONE (1) example of each type of environment (specific and general) and the challenges it presents to managers.

Most organizations operate in a dynamic environment nowadays with frequent unpredictable events which have an impact on it. Dynamic environment includes all elements outside the organization that can potentially affect all or part of the organization. The external environment significantly influences the performance of small firms. Business environment is constantly changing in different ways; hence, managers need to

The appropriate management actions and approaches depend on the situation. Managers with a contingency view use a flexible approach, draw on a variety of theories and experiences, and evaluate many options as they solve problems. Contingency management recognizes that there is no one best way to manage. In the contingency perspective, managers are faced with the task of determining which management approach is likely to be most effective in a given situation. Contingency thinking avoids the classical “one best way” arguments and recognizes the need to understand situational differences and respond properly to them. It does not apply certain management principles to any situation. Contingency theory is a recognition of the great importance of individual manager performance in any given situation. The contingency approach is highly reliant on the experience and judgment of the manager in a given organizational

3 stages which is Input stage which requires resources like money, materials and skill labors. It will undergoes the conversion stage which uses the technology to add values to the resources. Final stage is output stage where goods deliver to the