Contextual Surroundings Concept
Contextual surroundings refers to a group of elements external to the organization but that have influence over its activity and its performance and should, for that, be taken into consideration when the organization aims setting and when strategy adoptions and action policies. Contextual surroundings integrate a great number of variables, and the same may be integrated in four distinct contexts:
- Economic context: reflects the economical situation and determines the exchange of goods and services, money and information in society.
- Social-Cultural context: reflects society’s values, customs and traditions and influences the exchanges and the work systems.
- Political-Legal context: represents the political situation and legal principles and conditions the allocation of power and provides the society’s legal framework.
- Technologic context: reflects society’s technical progress and conditions the innovations at the products processes levels.