Business people do not manage their businesses focusing only on internal business undertakings. The external environment creates threats and opportunities for all businesses. Therefore as a result of the systems approach, business people should give utmost attention to the events occurring in the external environment. The business person’s art of coping with events occurring in the surroundings will probably influence success or failure in the private enterprise system.
Most of the managers have the tendency to focus on the internal activities and underestimate the effect of the external environment. That is because they have the power to change anything they want within their organizations. But they do not have the power to change events occurring in the external environment. The environment is not stable and predictable. Many things are rapidly changing. So the successful managers and business people should learn about the external environment and should adapt their organizations or influence the environment if they see that they can.
