The conditions within which the business operates, the sum total of all the factors which can influence the behaviors of the business and how it develops. Do you know The conditions that can influence the behaviors of a business exist both inside and outside the organization.
These conditions include whatever that goes on inside and outside the organization. These behaviors of the business include whatever the people inside and outside the organization think and do.
The Business Environment has gone from local to global. Why should managers be concerned with understanding and managing the organizational environment? Organizations do not exist in a vacuum Do you know? Management may be viewed as a process that integrates the individuals, the organization, and the organizational environment.
Management as an Integrating Activity Individuals – Organization – Environment Environment (Forces) Organization (Design ) Individuals / Groups (Behavior) Conflicts in Needs & Demands Opportunities & Risks o the Organization Forces that influence behaviors in the Organizational Environment The elements of the world is constantly changing The external organizational environment includes all outside elements that affect the organization General environment: Affects organizations indirectly Task environment: Organizational ecosystem: Sectors that conduct transactions with the organization Formed by the interaction among a community of organizations in the environment Internal environment: Elements within the organization boundaries What elements / forces in the “internal environment” of the organization do you wink can and will influence the behaviors of the people in the organization and how the organization develops ?
Internal Environment Ownership Size / People / Technology Forces Products / Services Organizational Structure Organizational Culture Strategy the “task environment” of the organization do you inside and outside the organization and how the organization develops? Task Environment Workers Customers Suppliers Distributors Competitors Business Partners the “external environment” organization and how the organization develops? General Environment Political Economic Sociological Technological Demographic Cultural Environmental Legal Organizational Ecosystem includes organizations In all sectors of the task and general environments that provide the resource and information transactions, flows, and linkages necessary for an organization to survive.
Globalization influences all other aspects of the external environment New competitors, customers, suppliers Changes in social, technological, and economic trends All organizations must compete and think globally Economic power has shifted to China and India The global environment is complex and ever-changing Massive advancements in a specific industry and society Advances drive competition and help innovative companies gain market share Demographic characteristics, norms, customs, and values Connected Generation or Generation C has woven technology into every aspect of life U. S. Population is aging Growing diversity has implications for business Economic health of the country/region Extended globally with uncertainty Consumer purchasing power Unemployment rate interest rates Government regulation; state, local, and federal Political activities Government agencies and regulation Managers must recognize the power of pressure groups.