UNDERSTANDING STRATEGIC MANAGEMENT CHAPTER 2: The General Environment The external environment facing the organization consists of both: a. A general environment‚ often referred to as the macro-environment because changes that occur here will have an effect that transcends firms and specific industries. b. A competitive environment‚ consists of the industry and markets in which an organization competes. In order to scan and monitor their environment‚ firms require tools of analysis that will
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Analyzing the General Environment Select three categories to analyze‚ from the list of the major forces that comprise the macro/general environment. Macro environment are external factors that have a direct impact on the organizations strategy and decision making. Those factors are uncontrollable. For example‚ some of those factors are: change in interest rates‚ change in cultural tastes‚ government regulations‚ social condition‚ technological changes‚ and natural forces. Those factors are usually
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The forces within the general environment‚ including politico legal‚ economic‚ technological‚ socio cultural and international forces‚ have a broad general impact on the organization. Although these forces do not always have a direct influence on the organization’s daily activities‚ they are important for several reasons. First‚ forces in the general environment can evolve into significant trends with far-reaching effects. A good example is the increasing interest in protecting natural resources
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MGC1020 Assignment #1 Which is more difficult to gauge accurately: the general environment or the task environment? Why is it important for a manager to make a clear assessment of these environments? The general environment and task environment are the two components that make up an organisations external environment. The external environment of an organisation includes influential elements that both directly and indirectly shape and impact its future‚ and as of late‚ has developed into
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Questions for review 1. Identify and discuss each major dimension of the general environment and the task environment. Both the general environment and the task environment are a part of the external environment. The general environment consists of; Economic Dimension‚ Technological Dimension‚ and the Political-Legal Dimension. The Economic Dimension discusses how healthy the economy is that the organization is in. It includes factors like unemployment rates and inflation. The Technological
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|Hsbc Bank (China) | |The Analysis of the General Environment of the HSBC in China (Mainland) | |Media Management | |
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any market there will be outside factors that will impact the success or failure of a product. These forces are a combination of the suppliers‚ competitors‚ publics as well as demographics‚ economic‚ cultural and technological forces to name a few. Companies must be able to find a balance between all these forces to be able to successfully sell their intended product. Marketing Environment Forces When it comes down to a company who is selling a product to a customer it depends on the relationships
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EXTERNAL General Environment Analysis The general environment is composed of dimensions in the broader society that influence an industry and the firms within it. For Nike is extremely valuable to analyze general environment factors that affect that affect us because through that we be able to find solutions to those problems. General environment is described as all the conditions outside the organization and the industry that form a background context for the managerial decision making. This
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Political Environment Launching a New Structure to Help Fulfill the Toyota Global Vision In April 2013‚ Toyota optimized its organizational structure in an effort to better fulfill the Toyota Global Vision by manufacturing ever-better cars. Together with the four newly established units encompassing our automotive operations‚ the TNGA Planning Division will be responsible for driving medium- to long-term technology-based product strategies under TNGA‚ while the Product and Business Planning Division
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The five forces – general assumption The threat of the entry of new competitors Profitable markets that yield high returns will attract new firms. This results in many new entrants‚ which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents‚ the abnormal profit rate will fall towards zero (perfect competition). * The existence of barriers to entry (patents‚ rights‚ etc.) The most attractive segment is one in which entry
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