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General Business Environment: Explore

The document discusses the external and internal environments of organizations and how they impact management. The external environment includes factors like the economic, sociocultural, political-legal, demographic, technological, and ecological situations. It also includes stakeholders, customers, suppliers, pressure groups, investors, and employees. The internal environment comprises a firm's resources, R&D, production, procurement, products, and services. Environmental scanning tools like SWOT analysis and benchmarking help organizations understand these environments and plan accordingly.

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29 views

General Business Environment: Explore

The document discusses the external and internal environments of organizations and how they impact management. The external environment includes factors like the economic, sociocultural, political-legal, demographic, technological, and ecological situations. It also includes stakeholders, customers, suppliers, pressure groups, investors, and employees. The internal environment comprises a firm's resources, R&D, production, procurement, products, and services. Environmental scanning tools like SWOT analysis and benchmarking help organizations understand these environments and plan accordingly.

Uploaded by

Business Administration Department
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FUNDAMENTALS OF MANAGEMENT 1 CHAPTER 2 THE FIRM AND ITS ENVIRONMENT

Explore

Examine
 Environmental Forces
o External Environment
 An inclusive concept that involves all outside factors and influences that impact the operation of a
business that an organization must respond or react to in order to maintain its flow of operations.
 General Business Environment
 Economic Situations
 Factors that influence buying habits of consumers and businesses and therefore
affect the performance of a company. These factors are often beyond a
company’s control, and may be either large-scale (macro) or small-scale (micro).
 Socio-cultural Situations
 Include different generations’ values, beliefs, attitudes and habits, customs and
traditions, habits and lifestyles.
 Political-legal Situations
 This refers to national or local news, international laws, and rules and regulations
that influence organizational management.
 Demographic Situations
 This refers to the human population characteristics that surround a firm or nation
and that greatly affect markets.
 Technological Situations
 This involves the use of varied types of electronic gadgets and advanced
technology that has revolutionized business management.
 World and Ecological Situations
 This is related to increasing numbers of global competitors and markets, as well as
the nature and conditions of the changing natural environment.
 Specific Business Environment
 Stakeholders
 Customers
 Suppliers
 Pressure Groups
 Investors/Owners
 Employees
o Internal Environment
 It is composed of various elements present inside the organization that can affect or can be
affected with, the choices, activities and decisions of the organization.
 Composed of business’ resources, research and development, production, procurement of
supplies, and the products and services it offers.
 Environmental Scanning
o Developing a Competitive Mindset
o Considering Future Business Scenarios
o Business Prediction/Business Forecasting
o SWOT Analysis
o Benchmarking
 A process of measuring the performance of a company's products, services, or processes against
those of another business considered to be the best in the industry, aka “best in class.”

Reference:

https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/pages/economic-
environment.aspx#:~:text=The%20term%20economic%20environment%20refers,small%2Dscale%20(micro).

https://opentextbc.ca/organizationalbehavioropenstax/chapter/the-organizations-external-environment/

https://businessjargons.com/internal-environment.html
FUNDAMENTALS OF MANAGEMENT 1 CHAPTER 2 THE FIRM AND ITS ENVIRONMENT

https://www.shopify.com/encyclopedia/benchmarking#:~:text=Benchmarking%20is%20a%20process%20of,identify
%20internal%20opportunities%20for%20improvement.

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