The Internal and External Environments Interact to Affect Managers and Organizations

"With the entire world as a market and national borders becoming increasingly meaningless, the potential for organizations to grow and expand is almost unlimited" (Robbins, 2003, p. 101), and business is increasingly international due to increasing sales and accessing resources(Wild, 1999). In such circumstance, organizations must learn how to survive and prosper in a global environment that is highly dynamic and unstable. Managers in this setting not only deal with a set of social , economic, legal and political factors in the home nation, but with entirely different set of these in each country of operation. International management involves balancing a firm's internal environment forces which is a system of shared meaning and beliefs within an organization that determines employees act with external environmental forces which is outside institutions or forces that potentially affect an organization's performance (Baird, Post, Mahon, 1990). The internal environment such as human resource policies, organizational culture, and production methods affects the manager's ability to achieve certain outcomes. However, it is not only the organizational culture that plays a significant role (Robbins, 2003). It interacts with the external environment such as social culture, technology, economic to affect the organization's performance in the global environment.…