It is no secret that the external environment is one of the essential components in forming the well-being and prosperity of almost any company. It is a multifaceted and complex concept, covering a wide range of various internal elements of organizations. As practice shows, the external environment concerns private and public institutions such as universities. This paper will analyze which external elements directly affect universities most intensely and how these processes influence educational institutions’ systems.
External Environment Impact
Political and Economic Environment
In fact, politics, economics, and universities directly influence each other. The state establishes and finances academies, recruits staff, dismisses and expels unwanted educators and students, and uses the research base. In turn, higher education institutions, with the support of the authorities, become independent economic entities. The financial situation, as well as politics, has an impact on the educational sphere, which is in particular need of cost optimization and a balanced budget. Funding limitations or redistribution leads to a reduced quality of educational services since the content is reduced (Bardi & Filho, 2019). Thus, the state’s financial burden can be shifted to tutors, students, and their families: universities reduce costs, lay off personnel, and learners are not interested in expensive education.
Social and Cultural Environment
Any changes in society can radically transform the essence of university education. Therefore, poor quality of education, which does not bring unique benefits to graduates, may decrease the demand for services since people will treat higher education with a certain degree of skepticism. This issue must be considered comprehensively since it is connected with cultural aspects (Bardi & Filho, 2019). The vast majority of citizens expect universities not only to provide education but also to ensure opportunities for high-paying jobs and social mobility. Many people may imagine that higher education is the key to success in one region. In others, people prefer to achieve career heights with the help of talents, but not diplomas.
A university is influenced by various aspects of the external environment. This effect cannot be quantified unequivocally because, on the one hand, the organization has complications, but, on the other, development vectors. However, universities need to carefully analyze the external environment to maintain the effectiveness and relevance of their activities. At the same time, organizations need to develop in order to keep up with social trends constantly.
Bardi, U., and Filho, W. L. (Eds.). (2019) Sustainability on university campuses: Learning, skills building and best practices. New York: Springer International Publishing.