Organization and Management (ABM 001)

Teachers’ Guide Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

LESSON TITLE: Various Forces / Elements of the Firm’s 1.

Environment Materials:
SAS

Lesson Objectives: Reference:

At the end of this day, I should be able to: pp. 53 - 57, Business Organization
and Management, Medina, R.
1. Identify Components of the Environment
pp. 41- 49, Fundamentals of
2. Define Business Environment Management, Rodriguez, R.,
Echanis, E.

1.

“After finishing this module, write some tips on what helped you learn on your Learning Tracker in Thinking
About Learning”

Introduction:
Welcome my dearest future managers! When asked “What is Environment?” in fifth grade. I replied,
“Everything we depend on.” Since then, my perception of the environment hasn’t changed much. In the same
line of thought let us understand what is meant by the business environment and the importance of the
business environment.

A. LESSON PREVIEW/REVIEW

Let the student interact and have ideas about the following :

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 Organization and Management (ABM 001)
Teachers’ Guide Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

1. What makes Enchanted Kingdom very attractive for recreational

activities ?

2. Describe how activities are designed to entertain the visitors?

Activity 1: What I Know Chart,

I guess you are now ready to list the things you have know about management. Try answering the
questions below by writing your ideas under the first column What I Know. It’s okay if you write key
words or phrases that you think are related to the questions. Go on!

What I Know Questions: What I Learned (Activity 4)

1. What are the macro economic factors,
environmental factors that affect a demographic forces,
firm technological factors,
natural and physical forces,
political and legal forces,
and social and cultural
forces.
2.What are the various forces In General Environment,
elements of the firm’s environment the elements included are
Technological, Natural,
International, Legal-Political,
Economics and Social
cultural. On the other hand,
the
Task Environment included
Customer, Competitors,

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 Organization and Management (ABM 001)
Teachers’ Guide Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Suppliers and Labour

Market
3 What are the elements of Economics
economic environment environment refers
all economics surroundings
that influence organization
activities. Explanation:
Important elements of
economic development
are Economic systems, Eco
nomic policies, Economic co
nditions and
Regional economic groups.
Feb

B.MAIN LESSON

Content Notes

Understanding the Nature of Organizational Environment

The Environment of a firm can be defined as the sum of all the elements and forces present in its
immediate and remote surroundings which have a potential impact on its ability to achieve its objectives.
This is composed of INTERNAL ENVIRONMENT , which is consist of conditions and
forces within the organization. EXTERNAL ENVIRONMENT, which is everything outside of an organization
boundaries that might affect it. Where it is also influenced accordingly with :

Internal Environment

This refers to factors existing within a marketing firm. They are also called as controllable factors, because the
company has control over these factors :

a) it can alter or modify factors as its personnel, physical facilities, organization and function means, such as
marketing mix, to suit the environment.

There are many internal factors that influence the marketing function, they are :

Top Management : The organizational structure, Board of Director, professionalization of

management..etc
Finance and Accounting: Accounting refers to measure of revenue and costs to help the marketing and
to know how well it is achieving its objectives.
Research and Development : Research and Development refers to designing the product safe and

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 Organization and Management (ABM 001)
Teachers’ Guide Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

attractive. They are technological capabilities, determine a company ability to

innovate and compete.
Manufacturing : It is responsible for producing the desired quality and quantity of products.
Purchasing : Purchasing refers to procurement of goods and services from some external agencies.

Company Image and Brand Equity : The image of the company refers in raising finance, forming joint
ventures or other alliances soliciting marketing intermediaries, entering
purchase or sales contract, launching new products and services

External Environment

External factors are beyond the control of a firm, its success depends to a large extent on its adaptability to the
environment.

The external marketing environment consists of :

a) Macro environment, and

b) Micro environment

a) Micro environment: The environmental factors that are in its proximity. The factors influence the company’s
non-capacity to produce and serve the market.The factors are :

1.Competitor – an organization that competes with other organizations for resources.

2.Customer – whoever pays money to acquire an organization’s products or services.

be classified as :

a.Ultimate customers: These customers may be individual and householders.

b.Industrial customers: These customers are organization which buy goods and services for
producing other goods and services for the purpose of other earning profits
or fulfilling other objectives.

c.Resellers: They are the intermediaries who purchase goods with a view to resell them at a
profit. They can be wholesalers, retailers, distributors, etc.

d.Government and other non-profit customers: These customers purchase goods and services
to those for whom they are produced, for their consumption in most of the
cases.

e.International customers: These customers are individual and organizations of other countries
who buy goods and services either for consumption or for industrial use.

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 Organization and Management (ABM 001)
Teachers’ Guide Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Such buyers may be consumers, producers, resellers, and governments.

3.Supplier – an organization that provides resources for other organizations.

4.Market Intermediaries – use for promoting, sellimmg, distributing the goods and services to the
ultimate consumers
5.Strategic partners – An organization working together with one or more other organization ina
joint or similar arrangement
6. Regulator – A unit that has the potential to control, legislate, or otherwise influence the
organization’s policies and practices.

Macro Environment:

Macro environment factors act external to the company and are quite uncontrollable. These factors do not
affect the marketing ability of the concern directly but indirectly the influence marketing decisions of the
company.

These are the macro environmental factors that affect the company’s marketing decisions :

1.Economic – the overall health and vitality of the economic system in which the
organization operates.
2.Technological – The methods available for converting resources into product and services.
3.Socio-Cultural – The customs, mores, values, and demographic characteristics of the society in
which the organization functions.
4.Political –Legal - The government regulation of business and the relationship between business
and government.
5.International – The extent to which an organization is involved in or affected by business in
other countries.

Activity 3: Skill-building Activities

Let the students answer for collaboration into grouping

with the following guide questions:

Case:

“If you happen to be a pilot of

flight PR 456 bound to a destination,

How will you travel if the weather forecast issues a coming tropical
depression in 12 hours ahead of the flight departure.”

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 Organization and Management (ABM 001)
Teachers’ Guide Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

1. Create a checklist how will the Pilot manage to consider the safe travel of the aircraft with the passengers on
board towards its point of arrival.

Activity 4: What I Know Chart,

In activity No. 1 You answer what you know about the topic. Now, that you have a clearer understanding of
today’s concept, time to complete the chart by answering the last column of this activity This time write what
you have learned.

What I Know Questions: What I Learned (Activity 4)

1. What are the macro economic factors,
environmental factors that affect a demographic forces,
firm technological factors,
natural and physical forces,
political and legal forces,
and social and cultural
forces.
2.What are the various forces In General Environment,
elements of the firm’s environment the elements included are
Technological, Natural,
International, Legal-Political,
Economics and Social
cultural. On the other hand,
the
Task Environment included
Customer, Competitors,
Suppliers and Labour
Market
3 What are the elements of Economics
economic environment environment refers
all economics surroundings
that influence organization
activities. Explanation:
Important elements of
economic development
are Economic systems, Eco
nomic policies, Economic co
nditions and

This document is the property of PHINMA EDUCATION

 Organization and Management (ABM 001)
Teachers’ Guide Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

Regional economic groups.

Feb

Activity 5: Check for Understanding

Instruction: Encircle the letter of the best answer to each question.

1. Can be defined as the sum of all the elements and forces present in its immediate and remote
surroundings which have a potential impact on its ability to achieve its objectives.
a. Environment of a Firm c. Internal Environment
b. Business Firm d. External Environment
2. It consist of conditions and forces within the organization
a. External Environment c. General Environment
b. Internal Environment d. Task Environment
3. It is everything outside of an organizations’ boundaries that might affect it.
a. Internal Environment c. General Environment
b. External Environment d. Task Environment
4. It is the factor that influence the company’s non- capacity to produce and serve the market.
a. Macro Environment c. Internal Environment
b. Micro Environment d. Task Environment
5. It is use for promoting, selling and distributing the goods and services to the final consumer.
a. Suppliers c. Competitors
b. Market Intermediaries d. public

C. LESSON WRAP-UP

Activity 6: Thinking about Learning

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 Organization and Management (ABM 001)
Teachers’ Guide Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

You have reached the end of this lesson! Congratulations and thank you for working hard to learn this lesson.
As you end this lesson, put a check mark beside the learning target if you have learned it very well.

Self- Evaluation on Achieving the Learning Target

I can identify components of the environment. _________

I can define business environment ________

FAQs
1.What Kind Of External Factors Influence The Process Of Business Enterprises?
The external factors are by and large, beyond the control of a company. The external or environmental factors
such as the economic factors, socio-cultural factors, government and legal factors, demographic factors, geo-
physical factors, etc., influence the process of business enterprises.
2. What Do You Understand By Free Market Economy?

The free market economy is not planned, controlled or regulated by the government. The government satisfies
community or collective wants, but does not compete with private firms; nor does it tell the people where to
work or what to produce.
The completely free market economy, however, is an abstract system rather than a real one

KEY TO CORRECTIONS
{*Teacher lists answers to activities #3 (+) and #5
** Activity no. 5

TEACHER-LED ACTIVITIES
{These are standard instructions for teachers.}
A. If this session happens to be a face-to-face, in-classroom learning session:
1) Collect completed work in the SAS.
2) Allocate your contact time with students to individual or small group mentoring, monitoring, and
student consultations.
3) You may administer summative assessments (quizzes, demonstrations, graded recitation,
presentations, performance tasks) during face-to-face sessions.
4) You may also explore supplementary activities that foster collaboration, provided that social
distancing is observed.
5) You may provide supplementary content via videos, etc.

It is important to remember that students who cannot make it to face-to-face, in-classroom sessions for
health and safety reasons, should not be given lower grades for missing in-class activities and should
be given alternative summative tests.

This document is the property of PHINMA EDUCATION

 Organization and Management (ABM 001)
Teachers’ Guide Module #4

Name: _________________________________________________________________ Class number: _______

Section: ____________ Schedule: ________________________________________ Date: ________________

B. If this session happens to be an at-home learning session for the students:

1) Check and grade collected SAS and other input from students.
2) Schedule phone calls/virtual calls/virtual chats to individual students or small groups of students to
monitor work, provide guidance, answer questions, and check understanding.

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