Discuss the influence of the external environment on the conduct of the organisation's business.

The organisation and the environment in which it operates in are not closed systems because they influence each other. The organisation thus cannot be successful if it is not in step with its environment. The simple fact that the organisation interacts with the environment means that the organisation is is acting in an open system and will be both affected by the environment and also impact on the environment. This means that the organisation draws …

…an organisation will be able to survive and shield itself. A good example locally is that of the commercial banks who were not sticking to their core businesses and engaging in unprudent policies. In conclusion the environment in a nutshell can shield itself effectively by carrying out constant environmental analysis. By scanning, monitoring , forecasting and assesing constantly the organisation is able to anticipate changes in the environment before they occur and act upon them accordingly.