Which item is not listed as part of the external environment in the material?

Which item is not listed as part of the external environment in the material?

• A. People
• B. Laws
• C. Economy
• D. Climate

Answer: (A)

Understanding internal versus external environments helps explain this. The external environment consists of factors that come from outside the organization and can affect it, such as laws and regulations, economic conditions, and the climate (physical and ecological conditions). People belong to the internal environment—the workforce and internal culture inside the organization. Since the material treats external factors as those outside forces, people aren’t listed as part of the external environment.

Understanding internal versus external environments helps explain this. The external environment consists of factors that come from outside the organization and can affect it, such as laws and regulations, economic conditions, and the climate (physical and ecological conditions). People belong to the internal environment—the workforce and internal culture inside the organization. Since the material treats external factors as those outside forces, people aren’t listed as part of the external environment.