10Sep 2018 by admin

Factors of the Task Environment that Affect an Organization – Essay

Accounting
Task environment consists of those industry factors which are external to the firm but have a direct and specific impact upon the organization and are in turn affected by the organization’s operations.These factors are shown in the following diagram.These factors are explained in more detail as follows. 1. Competition: ADVERTISEMENTS: Competition is the basic element of a free enterprise system. The interests of both the organization and the customers are better served when choices in the market are available. Competition encourages progress and product-developments. It forces organizations to be more innovative and productive. For example, in 1955, Harley- Davidson held nearly 70% of the U.S. motorcycle market, but by 1983, this share had been reduced to only 3.7%.This steep decline can be attributed to aggressive competition by Japanese companies such…
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