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The Organizational Environment

The Organizational Environment - WhyAnalyze October9,2008 ;...

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The Organizational Environment October 9, 2008 Why Analyze? Organizations do not operate in a vacuum; they operate in an OPEN SYSTEM Organizations operate in a PLURALISTIC ENVIRONMENT These are largely UNCONTROLLABLE FACTORS; external forces The General Environment The Economic Environment Interest rates; Unemployment rates; Trade balances; Dollar strength Market demand (Economic and Behavioural) The Political/ Legal Environment The Social Environment Philosophies, attitudes, and values Changing demographics Increasing urbanization Education The Technological Environment (6 weeks to get your product out) The Ethical Environment Pressure groups Values; morals The International Environment
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Increasing globalization – trade Foreign direct investment Expansion of transnational companies Task Environment Task Environment: forces from suppliers, distributors, customers, and competitors.
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