Managers Need to Understand All of the Environments - Essay Example

Why must managers understand all of the environments in order to think and act strategically; and what factors can impede this understanding? Managers must understand the entire environment in which their business operates. This is because numerous changes happen in both internal and external business environment (Tyndall, Gene, John and Taggart, pp 12). Therefore, by understanding the entire environment, managers can be able to make proactive decisions to prevent exposing their business against environmental risk as well as take opportunities environments present (Hiriyappa, pp12-20).

In above connection, managers should understand factors outside their business environment (external factors) such as political/legal factors, technological, social/cultural factors to mention just but a few (Nieuwenhuizen, Rossouw and Badenhorst, pp-7-15). This is because those factors may help in determining measures that can be taken to increase their business efficiency and productivity. Managers tend to over concentrating on day to day problems and overlook on other factors that affect their business, this may also act as an impediment for understanding the entire business environment (Stokes, David and Nicholas pp140-141).

Additionally, the inability of managers to learn fast and consistently monitor changes that are taking place may act as an impediment towards understanding the whole business environment (Stokes, David and Nicholas p140).