Oragnisational context

The term organisational context refers to the organisations environment. There are 3 layers of environment, internal, competitive and external. Some of the aspects of the internal environment are the organisations structure, objectives and culture. To measure the competitive or micro environment there are some tools. Porters 5 forces helps us analyse the micro environment.

This tools helps us analyse the competition and the industry as a whole. All the 5 forces determine the profitability of an industry. To measure the external environment a tool called PESTLE is used. It stands for political, economical, sociocultural, technological, legal and environmental factors. This tool is used because organisations are influenced by external factors and to survive and grown the organisations must respond to any changes in the external environment. PESTLE allows organisations to look at the most influential external environmental factors and this allows businesses to predict what the future of their industry will be so they can plan accordingly. Here is an example of a PESTLE analysis