Chapter 2: The Environment & Corporate Culture Flashcards
(42 cards)
The external environment can
Potential affect the performance of organisation
The external environment refers to
Institutions
Forces
Outside organisation
The two major layers of the external environment are
Task
General
The general environment represents
Outer layer of the external environment
The general environment is
Widely dispersed
Affects organisation indirectly
The five dimensions of the general environment are
PEST-IN Legal-political Economic Sociocultural Technological International Natural
International dimension is the
Events
Opportunities
In foreign countries
Technological dimension is the
Scientific and technological advancements in
Industry
Society at large
Sociocultural dimension include
Demographic characteristics Norms Custom Values of population In which org. Operates
The economic dimension is the
Overall economic health of
Region
Country
In which organisation functions
Legal-political dimension includes
Local laws
Political stability
changes in governmental policy
Legislation and regulations
Natural dimension refers to
Elements that occur naturally on earth Plants Animals Natural resources Climate
The task environment is
Closer to the organisation
The task environment includes
Sectors that conduct day to day transactions
Directly influence basic operations and performance
The task environment is made up of
Customers
Competitors
Suppliers
Labour market
Customers are
People and organisations who
Acquire goods or services from organisation
Competitors are
Other organisations in the same industry/type of business
That provide good or service
To same set of customers
Suppliers are
People and organisations that provide raw materials
That organisation uses to produce its output
The labour market comprises of
People available for hire by the org
Environmental factors are dynamic and
They cause great uncertainty
Management copes with uncertainty by
Adapting to chafes
Influence
The organisation adapts by
Forecasting
Planning
Predicting
Anticipating changes
Companies influence to
Make it more compatible with ta needs
How does the environment impact planning?
Goals and strategies adopted
Take into consideration
Task and general environment