Environmental Aspects

Running head: Environmental Aspects

Environmental Aspects

Bruce McCormack

University of Phoenix

ENVIRONMETAL ASPECTS

A businesses’ external environment can be defined as all the factors outside an organization that are taken into consideration by the organization in its decision-making (Duncan, 1972). The external environment is made up of three components: the remote environment, the industry environment, and the operating environment. In order to gain competitive advantage, an organization needs to study its external environment and make use of the opportunities there. To sustain a competitive advantage, the organization must respond to the information gathered through its study of the external environment by altering its strategies and plans as the need arises. The organization will study any number of factors of its external environment, which can include the state of the economy, government interaction, the legal landscape, or its suppliers and service providers.

Environmental scanning is the acquisition and use of information about events, trends, and relationships in the organization’s external environment and is used to plan the future course of action. An organization hopes to improve its position in the future by understanding the forces of change and developing effective responses through environmental scanning. Environmental scanning is the main source of information that an organization uses to adapt to its changing external environment.

Detroit Diesel Remanufacturing Corporation (DDRC) has five engine remanufacturing plants located in the United States and Mexico. These plants take in diesel truck and off-road diesel engines, disassemble them to their core, and through high intensity heating and cleaning processes, remove the oil and