A sound understanding of the environment in which an organisation operates is a valuable asset in management. In order to make effective decisions, it is important for managers to be aware of the factors that influence the environment and the benefits which can be achieved from using the nature of the environment to good effect. Without such knowledge, it is easy to misjudge the consequence of any actions taken

The first section of this module discusses the nature of the external environment, itself. It demonstrates how an environmental analysis can be undertaken and discusses the need to be prepared for crises which may arise from an unexpected reaction to a decision or simply from factors unrelated to the organisations activities

The second section follows on from the earlier discussion by explaining the concept and importance of marketing and the use of marketing analysis. It the describes the development of an appropriate marketing mix for the products and services provided by an organisation

The third section considers the value of data and information to any organisation. The nature of different types of data is discussed, along with details of primary and secondary sources of information. The need for high quality information is a key point stressed throughout the section

The fourth section deals with the delicate subject of ethics within business environments. This is an area of much discussion within the media and relates to the operating principles of an organisation. In recent years, the value of an ethical business approach has grown considerably and organisations are now expected to follow national (and even international) ethical guidelines. Unethical practices are identified, along with their likely consequences

The fifth section continues the discussion of ethical practice by examining the need for environmental awareness.  The impact of business on the environment is discussed in detail and examples are provided of environmental issues that have had negative effects of organisations’ profitability and sustainability. The concepts of conservations and environmental damage are identified as ones that impact on the reputation of an organisation

The module concludes by describing the nature of an organisation’s culture on its activities and its management. In addition, it indicates the need for an understanding of the national and religious culture associated with the countries within which operations occur in order to gain local acceptance and win support when operating globally