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In business proximity is defined as the environment in which the organization is operating in.
The environment consists of the macro environment and the Competitive environment. The macro-environment consists of the following factors: legal, political, economical, technical, demographic, social and natural factors. The competitive environment is composed of the following: the firm, its competitors, suppliers, customers, new entrances and substitutes.
A organization, according to Chester I. Barnard (Kretner and Kinickki), is "a system of consciously coordinated activities or forces of two or more persons" Embodied in the term "consciously coordinated" are four factors common to all organizations; coordination of effort, a common goal, division of labor and a hierarchy of authority...
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