Environment Of Management Essay

Submitted By johnjaiya
Words: 459
Pages: 2
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Management Essentials

Environment of Management

1

The Organizational Environment

Public
Pressure
Groups

Suppliers

THE
ORGANIZATION

Competitors

External
Environment
Global
Environment

Customers

Internal
Environment
1/11/2015

2

Management Essentials

The Organizational Environment
External Environment: forces that can potentially affect an organization’s performance:
1) Specific Environment: external forces that have a direct and immediate impact on the organization
2) General Environment: broad conditions within home country such as economic, socio-cultural, political/legal, demographic, technological, and global conditions that may affect the organization

Global Environment: international forces that may affect the organization. Global perspective on organizations. 3

The Organizational Environment
Specific
Environment:
Public
Pressure
Groups

Suppliers

THE
ORGANIZATION

Competitors

Customers

-Suppliers
-Competitors
-Public
Pressure Groups
-Customers

1/11/2015

4

Management Essentials

Specific Environment
1. Customers: individuals and groups that buy the goods and services an organization produces
(ie: home, business, government)

2. Suppliers: are individuals and organizations which provide organization inputs it needs to produce good and services.
(ie: resources, materials, labor).

5

Management Essentials

Specific Environment
3. Competitors: organizations that produce goods or services that are similar to a particular organization’s goods or services.
(ie: direct and indirect competitors)

4. Public Pressure Groups: special interest groups that influence the actions of organizations. 6

The Organizational Environment

Public
Pressure
Groups

General
Environment:
Suppliers

THE
ORGANIZATION

Competitors

1/11/2015

Customers

-Economic
-Demographic
-Technological
-Socio-Cultural
-Legal-Political

7

Management Essentials

General Environment
1. Economic Conditions: macroeconomic conditions within home country include interest rate changes, unemployment rates, economic growth and other forces that affect the national economy and the general health and well-being of a national organization. 2. Demographic Conditions: trends in the changing nature of the composition and diversity of a population.

3. Technological Conditions: outcomes of changes in technology that managers use to design, produce and distribute goods and services.

8

Management
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