Question : Which of the following is a component of the external environment in the context of planning?
Option 1: Organizational structure
Option 2: Company policies
Option 3: Government regulations
Option 4: Employee morale
Correct Answer: Government regulations
Solution : The correct answer is (c) Government regulations
The external environment refers to the factors and conditions outside an organization that can impact its operations and decision-making processes. It includes various elements that are beyond the control of the organization. Government regulations are one such component of the external environment.
Government regulations encompass laws, policies, and rules established by governmental bodies that organizations must comply with. These regulations can cover a wide range of areas such as industry-specific regulations, labor laws, environmental regulations, taxation policies, trade policies, and more. They can have a significant impact on an organization's planning processes, as they influence the legal and regulatory framework within which the organization operates.
