Chapter 2 Notes - I. The organization's environments A. The...

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I. The organization’s environments A. The general environment (external) Economy - Overall health and vitality of the economic system in which the organization operates - Growth, inflation, interest rates and unemployment important Technology - Methods available for converting resources into products or services - In service and manufacturing sector Political-legal climate - Government regulation of business and the relationship between business and government - Three Basic Reasons 1. legal system defines what an organization can and cannot do 2. sentiment in government influences business activity 3. Political stability has ramifications for planning, nobody wants to start new business in unstable country B. The task environment (external) Competitors - Other organizations that compete with a particular organization for resources Customers - People who pay money to acquire a organization’s products or services Suppliers - Provide resources for other organizations Regulators - A body that has the potential to control, legislate or otherwise influence the organization’s policies and practices 1. Regulatory agencies – created by the government to regulate business activities: EPA, SEC, FDA 2. Interest groups: organized by its members to attempt to influence organizations; MADD, NRA Strategic partners (allies) - Organization working together with on e or more other organizations in a join venture or similar arrangement C. The internal environment: conditions and forces within an organization Owner: Whoever can claim property rights to an organization Board of directors: governing body elected by the stockholders and charged with overseeing the general management of the firm to
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ensure that it is being run in a way that best serves the stockholders’ interests Employees Physical environment II. The ethical and social environment of management A. Individual ethics in organizations
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This note was uploaded on 03/27/2008 for the course BUSINESS 06J:048 taught by Professor Christensen-salanski during the Fall '08 term at University of Iowa.

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Chapter 2 Notes - I. The organization's environments A. The...

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