Second, conditions created by forces in the general environment can produce an overall climate that the organization must consider. For example, food maker H.J. Heinz did well when inflation allowed it to pass along costs without hurting profits, but when inflation slowed, so did real sales growth. At the same time, Heinz found that a new emphasis on healthy life-styles was changing the food-buying habits of many people. To cope, Heinz cut its costs by 2 percent but diverted the cost savings to build new sales momentum through more efficient product development and promotion for items such as Weight Watchers foods. Finally, forces in the general environment sometimes become more direct over time, influencing the task environment. http://www.blurtit.com [continues]
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