Refined 007 - internal/external environments Flashcards
(23 cards)
What are the five dimensions of the General Environment?
Economic, Socio-cultural, Political-legal, Technological, Natural.
Example: A retailer adjusting pricing due to inflation (economic); or adapting to green regulations (natural).
What do economic conditions include?
Inflation, interest rates, GDP, income levels, and unemployment.
Example: High unemployment may reduce consumer spending on luxury goods.
What are socio-cultural conditions?
Values, education trends, demographics, and human rights norms.
Example: An ageing population increases demand for aged care services.
Define political-legal conditions.
Laws, regulations, and government philosophy.
Example: New tax laws affecting small business operations.
What are technological conditions?
Advancements in tools, systems, and scientific developments.
Example: AI improving customer service chatbots.
What is meant by natural environment conditions?
Environmental concerns and nature’s state (e.g. climate, resources).
Example: Carbon offset requirements for airlines.
What are the four dimensions of the Task Environment?
Competitors, Suppliers, Customers, Labour Market.
Example: A business sourcing cocoa (supplier) and competing with other ethical brands.
What is the role of competitors?
Organisations offering similar products or services.
Example: Qantas vs Virgin in the Australian airline market.
What role do suppliers play?
They provide inputs and raw materials for production.
Example: A café sourcing beans from fair-trade roasters.
Who are customers in this context?
Buyers of the goods or services.
Example: University students paying for education.
What is the labour market?
People available for hire with the required skills.
Example: A shortage of software engineers increases hiring costs.
What is a boundary-spanning role?
Employees connecting the organisation to its environment.
Example: Sales reps gathering customer feedback to improve products.
What is forecasting?
Using data or expert input to predict future trends.
Example: Predicting tourism growth post-COVID.
What is an inter-organisational partnership?
Two or more firms working together to reduce uncertainty.
Example: Ford and GM co-developing a transmission.
How can firms influence the external environment?
Through advertising, PR, lobbying, and trade associations.
Example: A mining firm lobbying for policy change on emissions.
What is corporate culture?
Shared values, beliefs, and norms guiding behaviour.
Example: Google’s culture of innovation and openness.
What’s the difference between visible and invisible culture?
Visible: stories, symbols, rituals. Invisible: values, beliefs.
Example: Company uniforms (visible) vs ‘we always put the customer first’ (invisible).
Why must culture align with the external environment?
To support strategy and adapt to external demands.
Example: A sustainability-focused brand fostering eco-conscious culture.
What are the four types of corporate culture?
Adaptability, Achievement, Involvement, Consistency.
Example: Lush (Adaptability); InBev (Achievement); Squarespace (Involvement); Pacific Edge (Consistency).
What defines Adaptability Culture?
External focus + Flexibility = Innovation and responsiveness.
Example: Tech startups iterating rapidly based on user feedback.
What is an Achievement Culture?
External focus + Stability = Performance-driven culture.
Example: Sales organisations with strict KPIs.
What is an Involvement Culture?
Internal focus + Flexibility = Employee empowerment.
Example: Small businesses promoting collaboration.
What does Consistency Culture value?
Internal focus + Stability = Order and efficiency.
Example: Traditional banks with clear rules and protocols.
