Managers and organisations are influenced by the environment they interact with

Managers and organisations are influenced by the

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Managers and organisations are influenced by the environment, they interact with it Changing environment creates uncertainty: how well managers can understand or predict the changes and trends in the environment affecting their organisations What are stakeholders? Why do they matter? People or groups that have interest in the business and can influence the action a business takes (internal: employees, owners, board of directors) (external: customers, competitors) The people whose interests are affected by an organisation’s activity How they influence us and how we influence them Task Environment Customers Those who pay to use an organisation’s goods or services Rights specified under consumer law protection (safety, right to be informed, right to choose, right to an acceptable level of quality) Competitors Organisations have to be actively aware of their competitors although a general strategy is to try and do something different to minimise direct competition Suppliers Person, organisation that provides supplies- raw, materials, services, labour or energy Depending on the demand, suppliers hold more power as they are the resource holders Have an ongoing relationship with a buyer or be used for a one-off purchase Distributors Who an organisation gets to distribute its products can affect profitability
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Person or organisation that helps another organisation sell its goods/ services to customers Publishers of magazines: don’t sell directly to retailers: go through a distributer/ wholesaler Internet has a big impact Strategic Allies 2 organisations that join forces to achieve advantages neither can perform as well alone partnerships seem to work when partners are not direct rivals but have common technologies and challenges to work on Employee Organisations Trade unions and associations Trade unions: typically represented hourly paid workers Professional associations tended to work with salaries workers Both have similar purpose in acting to bargain for improved wages & conditions with employers Local Communities Organisations are affected by whether they are viewed positively or negatively Operate with dependencies on people and businesses they employ (in)directly Financial Institutions Banks, finance companies and credit unions Established companies rely heavily on outside financial support for working capital to cover weekly expenditure Government Regulators Agencies that establish ground-rules under which organisations may operate Affect and are affected by activities of your organisation Special Interest Groups (NGO’s) Groups whose members try to influence specific issues Sectional interest groups : promote issues relevant to a particular section of society, most frequently formed around shared economic interest (trade unions) Promotional interest groups : seek support from all members of society, cause of national interest (environmental campaigns) Mass Media
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