The External Environment and Organizational Culture

Topics: Environment, Natural environment, Environmentalism Pages: 4 (846 words) Published: July 24, 2013
The External Environment and Organizational Culture
Chapter 2

I. Systems Theory of the Organization
a. Figure

b. Open systems – organizations that are affected by and that affect their environment c. Inputs – goods and services organizations take in and use to create products or services i. Raw materials, services, equipment, capital, information d. Outputs – products and services organizations create ii. Products, services

e. External environment – all relevant forces outside a firm’s boundaries such as competitors, customers, the government, and the economy iii. Competitive environment – immediate environment surrounding a firm 1. Suppliers, customers, rivals etc

iv. Macroenvironment – general environment
2. Governments, economic conditions, fundamental factors that generally affect all organizations II. The Macroenvironment
f. Figure

g. Laws and regulations
v. Regulators
h. Economy
vi. Unemployment, fluctuation of stock market, increased competition from domestic and foreign firms i. Technology
vii. Technological advances create new products, advanced production techniques, and better ways of managing and communicating j. Demographics
viii. Refers to measures of various characteristics of the people who make up groups or other social units ix. Work groups, organizations, countries, markets and societies can be described statistically by referring to demographic measures such as members’ age, gender, family size, income, education, occupation etc k. Social Issues and Natural Environment

x. Example: Gender and religion issues, Environmental issues III. The Competitive Environment
l. Competitors
xi. Small domestic firms, strong regional competitors, big new domestic companies, overseas firms, newer...
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