Management Chapter 4 External Environment & Organizational Culture
The general and macro environment
Economic conditions
The overall health of the economy
Economic growth, job outlook,
Demographics (statistics, GDP etc..)
Disposable income (how much a household has available for spending
and saving after tax)
Offshoring/re-shoring (outsourcing jobs to foreign locations)
Legal political conditions
Patents & Intellectual property
Laws and regulations per country differ, what business forms, political
trends?
Internet censorship - deliberate blockage of public access to information
posted
Future laws, so who is running the country now and who will be running
the country, will laws change? how will this effect me
Sociocultural conditions
Look at demographics relation to education, health/nutrition values,
birthrates, equal pay etc..
Generational cohorts -- people born within a few years of one another and
who experience somewhat similar life events during their formative years
(gen. x, boomers, millennial etc..)
Technological conditions
IT systems/infrastructure, internet access
Advertising method (social media, FB, twitter, Instagram etc..)
Technological hypes
Work-life balance could become a problem as technology is everywhere
now a days
Natural environment conditions
“green” values
recycling infrastructure
oil-spills, hurricanes, nuclear plant failure
The specific or task environment
Actual organizations, groups, and persons with whom an organization
interacts and conducts business
Stakeholders and value creation
Stakeholder is anyone who is affected by the operations of an
organization (competitor, owner, customer, distributor, future
generations etc…)
Organization tries to create value
The general and macro environment
Economic conditions
The overall health of the economy
Economic growth, job outlook,
Demographics (statistics, GDP etc..)
Disposable income (how much a household has available for spending
and saving after tax)
Offshoring/re-shoring (outsourcing jobs to foreign locations)
Legal political conditions
Patents & Intellectual property
Laws and regulations per country differ, what business forms, political
trends?
Internet censorship - deliberate blockage of public access to information
posted
Future laws, so who is running the country now and who will be running
the country, will laws change? how will this effect me
Sociocultural conditions
Look at demographics relation to education, health/nutrition values,
birthrates, equal pay etc..
Generational cohorts -- people born within a few years of one another and
who experience somewhat similar life events during their formative years
(gen. x, boomers, millennial etc..)
Technological conditions
IT systems/infrastructure, internet access
Advertising method (social media, FB, twitter, Instagram etc..)
Technological hypes
Work-life balance could become a problem as technology is everywhere
now a days
Natural environment conditions
“green” values
recycling infrastructure
oil-spills, hurricanes, nuclear plant failure
The specific or task environment
Actual organizations, groups, and persons with whom an organization
interacts and conducts business
Stakeholders and value creation
Stakeholder is anyone who is affected by the operations of an
organization (competitor, owner, customer, distributor, future
generations etc…)
Organization tries to create value
