Management - The Business Environment of Organizations

Management - The Business Environment of Organizations -...

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Unformatted text preview: Management: The Business Environment of Organizations To lead an organization efficiently we must know where our company is situated, what are the outside influences and the inside ones. Outer environment (macro environment) There are some factors in the lives of organizations that affect them, but they dont have any control over them (much like in our own life). We can define three major areas, but these are just the large groups, they just give a general outline. Political-legal environment: The effects of this are quite visible. Just think of the effect of changing taxes, or raising interest rates. If the legal system, pushed by politics lowers he acceptable emission rates, companies may have to invest in new equipment or close down. Technological state (R+D): Technology can bring millions to one company and take millions from another. Organizations on the frontier usually experience a boom, with many following, but some rivals may go bankrupt. A good manager has to be aware of change and embrace technology to gain an edge on competition.manager has to be aware of change and embrace technology to gain an edge on competition....
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This note was uploaded on 04/19/2011 for the course MBA 550 taught by Professor Schneider,d during the Spring '11 term at AIB College of Business.

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Management - The Business Environment of Organizations -...

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