Internal & External Environment Flashcards
(16 cards)
Internal influences on a business
- Competitors
- Managers
- Customers
- Corporate Culture
External influences on a business
- Social
- Economic
- Technological
- Ecological
- Political
External: Cultural/Social
People or groups in our society and the way they interact and behave towards each other
E.g
- Ageing Australian Population
- Multicultural society/ Equal Opportunity
- Increased working hours of some sections of the workforce
- Increase in awareness of and concern for health and fitness
- Casualisation of the workforce (uniforms)
External: Technological Factors
Major developments in technology and advanced communications technologies
E.g
- Dramatic effect on the way an organisation operates internally
- Aims to improve productivity
- Brings changes to work practices - can create anxiety for staff
Internal: Corporate Culture
Describes the shared values and beliefs of the people in the organisation.
E.g
- Management Styles
- Attitude by Staff to Management and vice versa
- How staff interact
- Budget (allow money for lunch/special occasions)
- Customer relations
- Dress Codes
Real Corporate Culture
- Look at the management culture of the organisation
- Attitudes of management to staff (vice versa)
- Relations among staff (interactions)
- Customer relaitons
- Style of dress and language used
Corporate Culture
Used to describe the shared values and beliefs of the people in an organisation which substantially influences members’ behaviour.
- Corporate Culture can be difficult to change because it’s largely based on people’s values and beliefs
- Linked to ethical behaviour
Corporate Culture developed by:
- Management recognising and rewarding
- Management providing an example of the culture in action
- Management communicating the desired culture by written codes of ethics or distributing in a magazine.
- Ethical recruiting and selection policies
- Training
Ethics
Are the moral standards and principles that guide people’s decisions and actions. Integrity is often used to describe this personal quality.
- Business ethics depend on an organisation’s culture or corporate culture
Advantages of an ethical socially responsible organisation (or manager)
- The organisation’s product
- Creation of employment
- Creation of export revenue
- Development and transfer of new technology
- Outcomes in the natural environment
- Income distribution otucomes
Social Responsibility
The idea that businesses should balance profit-making activities with activities that benefit society; involves developing businesses with a positive relationship to the society in which they operate.
Corporate Social Responsibility
A corporation’s initiatives to assess and take responsibility for the company’s effects on environment and social wellbeing.
- Abbreviated as “CSR”
Business Ethics
The basic concepts and fundamental principles of decent human conduct and for the natural environment.
External Impacts: Political and Legal
Activities and decisions of the three level of government.
- Healthy & Safety, Human Rights, Fair Competition, Anti-discrimination, Building regulations etc…
How do laws and regulations affect business (or manager)?
Staff are able to follow the regulations of Health and Safety, less accidents, compare products and sales.
External Impacts: Ecological Factors
Improving environmental management. Trying to minimise or eliminate ecological or natural environment issues such as:
Water shortage, Greenhouse emissions, Pollution, Recycling waste
- Meeting society’s expectations
