Merchargy is a firm that supplies garments to apparel stores. merchargy discovered that one of its customers, apricoress, a large apparel store, had been selling the products sourced from merchargy at exorbitant rates. as this was a violation of their trade contract, merchargy filed a suit against apricoress on the grounds of fraud and won the case. apricoress incurred huge losses because of the compensation it had to pay merchargy. in the context of the general environment, this scenario best illustrates the effect of the on organizations.

In the context of the general environment, this scenario best illustrates the effect of the "legal component" on organizations.

The general environment is the bigger environment inside which the errand condition is implanted. It incorporates political and legitimate powers, macroeconomic powers, statistic powers, sociocultural powers, innovative powers, and global powers. Components in the general condition affect the association through the medium of the task environment.  

The general environment helps shape the errand condition, in this way deciding the greatness of the openings and dangers facing the association. The general condition is less simple to shape than the errand condition, however it is no less critical.