System boundaries define the limits of a system, distinguishing what is inside the system from the external environment. They are crucial for understanding interactions, inputs, and outputs, and for determining the scope of analysis and control within a system.

System Boundaries

System boundaries

limits of a system

The external environment encompasses all external factors and forces that can impact an organization’s performance and decision-making. Understanding and adapting to these factors is crucial for strategic planning and maintaining competitive advantage.

external environment

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