"The distinction between [organisations and their environments] is arbitrary and idiosyncratically related to particular positions and point of view" (Dawson, 1966, p. 107).

All organisations interact with the environment to varying extents. This stems from the concept that an organisation can be characterised as an open system, one that interacts with and reacts to its environment. Thus, an organisation observes its environment, perceives any threats or opportunities and evolves as required. The environment can be classified as everything outside of an organisation or all elements that are not formally defined as belonging to the organisation (Dill, 1962, cited in …

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