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Unformatted text preview: Chapter 3 • The External Environment o Organizational Environment All elements outside of organization w/ potential to affect organization Competitors, resources, economic conditions, etc. o External Environment’s 2 layers (Page 73 Chart) General environment • Outer layer that’s widely dispersed and affects organizations indirectly • Social, demographic, economic factors • Don’t change everyday Task Environment • All sectors that conduct day-day transactions w/ organization Internal Environment • Within organization’s boundaries • Employees, management, corporate culture, etc o General Environment 1 International Dimension • Events originating in foreign companies • Opportunities for US companies in foreign countries • Provides new competitors, customers, shapes trends, etc • Most dramatic change in recent years o Shift of power from China to India Technological Dimension • Scientific and technological advancements • Recent years this has expanded massively • Nanotechnology o Manipulating matter at tiniest scale Sociocultural Dimension • Demographic characteristics and values of population o Geographical distribution, age, education levels, etc. Economic Dimension • Health of country/region that organization operates in o Consumer purchasing power, interest, unemployment rates Legal-Political Dimension • Gov regulations at local, state, federal levels • Political activities designed to influence company behavior o US encourages capitalism and t ries not to overregulate...
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This note was uploaded on 04/19/2008 for the course BUS 251 taught by Professor Nakhai during the Spring '08 term at Millersville.
- Spring '08