An organization's task environment is the collection of factors that affects its ability to achieve goals. Common factors in the task environment include competitors, customers, suppliers and distributors. By identifying potential factors that could impede success, the organization has the ability to adapt.
The number and quality of competitors of an organization impact an organization's task environment. If an organization has many strong competitors, it must produce excellent quality. The demand from customers affects the revenue and profit achieved by a business. Suppliers affect the level of quality and prices paid for products. Distributors help a company get its goods to buyers.