Posted in Marketing and Strategy Terms, Total Reads: 20238
Definition: Task Environment
Task Environment of an organization is the environment which directly affects the organization from attaining business goals. In brief, Task Environment is the set of conditions originating from suppliers, distributors, customers, stock markets and competitors which directly affects the organization from achieving its goals.
Task environment helps in identifying the environmental factors responsible for the success of the company. Factors responsible for Task Environment are
Competitors generally look for higher margins and for this they provide unique features to its products, thus try to create differentiation.
E.g.: Adidas, Nike, Puma all shoe manufacturers produce shoes catering for different segments in different styles and charge premium accordingly.
Organizations also compete for customers as well as for wholesalers, retailers etc. Customers decide the fate of any company and hence companies try their level best to lure them.
Suppliers have high bargaining power if the raw materials being supplied are rare or if there are less number of suppliers in the market. So it’s important to hold on the suppliers and maintain good relationship with them. Acting intelligently, companies often maintain more number of suppliers to reduce risk of deserting by anyone.
E.g.: Kriti Nutrients Ltd. in India is supplier of lecithin to Nestle (for baby foods)
Distributors who become intermediary between retailers and wholesalers or between manufacturer and wholesaler play a vital role in a task environment.