Element 1 of the Drivers of Change model:  The External Environments


Element 1: External Environment: 

Dr. Westbrook explains that the external environment element includes all external issues, and includes competitors, customers, suppliers, regulators, local community, and possibly others. 

However, for some people it seems that splitting the external environment into two parts, international and domestic, helps to stress today's international environment. In the Westbrook Stevens Model, the two parts of the external environment address the following: 

Element 1a: External Environment, International: In today's world, the "world" is important. Many of the same sub-elements as the domestic environment can be found internationally, and could be viewed as those people, systems, and conditions surrounding the organization on the international level. 

Element 1b: External Environment, Domestic: The domestic external environment of an organization can be viewed as those people, systems, and conditions surrounding the organization on the national, state, county, city and community level. It consists of any external issue that is not international in scope and is not a "part of" or "internal to" the organization. The external environment's sub-elements can be viewed at the macro level as well as the micro level and would include all of the Westbrook Model sub-elements and possibly also include the following: 

  1. Weather, Climate and Natural Disaster - the elements of nature have a great deal to do with some company operations. Agriculture and construction are two industries highly affected. 
  2. Economy and Politics - Politics in Russia are different from politics in the U.S. requiring different management systems.
  3. Non-Business Related Stakeholders/People, Customs, and Systems
  4. The Community
  5. Demographics
  6. Values and Religious Issues
  7. Habits and Larger Cultural Issues
  8. Employees' Family and Friends
  9. Sports, Hunting, and Farm Seasons
  10. Other Groups and Issues

These yellow boxes are not placed under the headings of International or Domestic for strategic reasons.  They just better fit on the slide this way.  The point of the slide is this...each of the subheadings can related to either Domestic or International issues. 

External and Internal Environmental Link Found by Machelle TenBroeck Janet L. Crabtree TNU 2008 - Bartol-Martin, Management, McGraw-Hill Companies 2008, http://ollie.dcccd.edu/mgmt1374/book_contents/1overview/business_environment/bus_envior.htm