Escolar Documentos
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Cultura Documentos
Nature and scope of the business environment External Internal Organizational environmental interactions Organizational response to environment Assignment
Specific task Environment Clients Customers Owners Share holders Competitors Suppliers Regulators Market forces
Clients Board of Directors Employees Processes Culture Climate Labor Task Environment Political-Legal Business Environment International
Regulators
ECONOMIC Law interest rates. Low Unemployment Low inflation. Strong dollar. Recession In Midwest and Southwest
COMPETITORS Compaq, DEC, TI, AT&T New entrants. Shift: Isolated Products to Integrated IS, Rapid expansion SUPPLIERS Subcontractors provide components for machines. Microprocessors from Taiwan. Printer from Japan Share / Bondholders
CUSTOMERS Declining growth rate Businesses, Universities Schools, Want lower prices Target computer layperson Loyal like IBM service
IBM
HUMAN RESOURCE Treat employees well No layoff policy potential Unions College graduates
LE Ste GAL / Pri ps to r POL I v Pro acy l egula TICA a t cou tectio ws. P e soft L w ntr nist o ie s leg tentia are in Ne w t islatio l anti form t a ax law n in o rust s tion uit th e s r
S0CIOCULTURAL Computer use in schools at all levels. Inexperienced computer laypeople Computer piracy and fraud New computer applications. Home and family use, computer games
NAL s Hire ine NATIO 130 countrie mach INTER ucts in s. Buy of trie od Sell pr in host coun liers 40% ls pp nationa m foreign su ales s ro parts f from foreign es revenu
Unionization
Contingency analysis
Political Environment
Type of political system
Federal / Local
Regulatory control Trade unions act Laws for consumer protection Laws of managerial remuneration Taxation Other standards Judiciary system Administrative system
Technological Environment
Technology, business development and growth of economy closely inter related New medicines, biotech field, cosmetics, auto telecom, computers, fiber optics, xerography Effect of new technology on old business Technological gaps
Economic Environment
Economic health
GNP personal income disposable personal income personal consumption patterns & expenditures retail sales
Savings
Personal Business
Price, wages & productivity Inflation rate , consumer price index Output / hour / business sector State & local expenditure Defense expenditure Business / Investment Climate (assign grade = A+, A, B, C)
Investment
New equipment Inventory
SIMPLE COMPLEX
few elements & little segmentation more elements, high degree of segmentation
Complex
Simple
H O M O G E N E I T Y
Moderate uncertainty
Most uncertainty
Least uncertainty
Moderate uncertainty
The Organization
Labor force
Consumers
Summary
Business environment means surroundings, conditions, situations & trends General environment is created by political, economic, social & technological factors Business has internal as well as external environment Business environment is complex phenomenon,organizations should adapt to it Business environment is the foundation of corporate planning Environment-objectives-strategies-structure-system
The Firm
creditors suppliers finance Production Marketing
consumers
shareholders
Assignment
In what ways are the major dimensions in the external environment changing in todays world? Illustrate. How can you face these challenges? Create an organizational-environmental chart for your favorite company. Prepare a country report for any country of your choice including the different environments.