Scribd
Upload
54 views13 pages

Global Environment

This document discusses the external environment and its impact on organizations. It covers political issues, technological advances, and environmental issues. It also examines cultural dimensions, globalization perspectives, and provides a summary. The external environment has direct and indirect impacts and is shaped by political, economic, social, technological, and environmental factors on a global scale.

Uploaded by

Surendra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
54 views13 pages

Global Environment

This document discusses the external environment and its impact on organizations. It covers political issues, technological advances, and environmental issues. It also examines cultural dimensions, globalization perspectives, and provides a summary. The external environment has direct and indirect impacts and is shaped by political, economic, social, technological, and environmental factors on a global scale.

Uploaded by

Surendra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 13

1

Lecture 2
Global Environment
2
Agenda

Political Issues

Technological Advances

Environmental Issues

Cultural Issues
3
The External Environment

Environment has an immediate


and first hand impact. E.g. new
Direct Impact
Competitor.

Environment has a secondary/distant


In-direct Impact Impact effect. E.g. change in interest
rates, legal requirements
External Dimensions 4

Political and Legal

Regulatory parameters
Political parties create/influence laws Technological dimensions
Tax policies, trade regulations, Scientific processes used in changing
and minimum wage legislation inputs (resources, labour, money)
to outputs (goods and services).
External technological changes.

Economic dimension Social Dimensions


worldwide financial conditions. Education, customer preferences, family units,
Interest rates, inflation, Environmental concerns, healthy living, immigration
unemployment rates,
gross national product.
5
Impact of Growing Economies
(China and India)

New economies will control total production…


eroding military and political power of rich countries

Increase in the demand for natural resources.

Threat of relocation may be used to drive down


remuneration

Rising investment in new economies could lead to a


global shortage of savings, causing world interest
rates to rise.
N America
Europe
Integration of economies (EU)
C & E Europe 6
Strong economy
Transitional economies (Albania, Bulgaria) Stable govt.
Expansion into C * Eastern Europe Successful economies (Czech. Poland) Market driven

Africa
Large natural resources (Oil) S. America
Diverse population High inflation
Weak govts Political instability
High corruption Emerging economies
Brazil, Argentina,
Chile
E Asia
Japan – strong govt intervention
China – High growth rate political
and economical instability
India- Technology leader
7
Environmental Issues

Deforestation Ozone depletion


Divest/Clear forest and trees Release of chlorofluorocarbons (CFCs)
Increase in carbon levels in the atmosphere Hazardous ultraviolet light from sun can cause cancer
Health – respiratory dysfunctions Destroys trees and animals
Unbalanced ecosystems- droughts, floods, Raise the temperature of sea
hurricanes

Global warming
Mercury poisoning Green houses gases that trap the heat
Mercury vapour inhaled into the body caused by burning fossil fuels, land filled waste sites, etc.
light bulbs, batteries, dental fillings Rivers and lakes will dry up
Kidney damage, insomnia, coma, death Crops dying from lack of rain
Rise in sea levels
• Wearable computers 8
• Screens that fit on the back of your hands
or your sunglasses
• Microphones as permanent earplugs
• Permanent connections

How you shop


• e-smells
Lifestyle • e-mirrors
changes • e-shop assistants

How you live


• Lighting to match your mood
• Energy management systems
• Water control – moisture detectors
• Home security – sensors in blinds, garage doors
Dimensions of National Cultures
(Hofstede)

Individuality vs Collectivism
Power Distance Dimension
Uncertainty Avoidance Dimension
Masculinity / Femininity Dimension
10
Globalisation Tutorial

Use you will be provided with different


perspectives held by pro- and anti-
globalisation groups and individuals. You
are required to summarise the key findings
of each group.

You will be required to present your findings


to the rest of your class.
11
Globalisation

 Pro-globalisation arguments
 Free trade eliminates poverty
 Enhance prosperity and development
 Helps environment by imposing standards and trade
restrictions
 Improves human rights by reducing child labour and gender
inequalities
12
Globalisation

 Anti-globalisation arguments
 Hinders local development
 Accumulation of power by rich countries
 Undermines government in human rights
 Increases poverty and inequality
 Detrimental to environmental sustainability
 Poor access to medicine – restricted by market driven policies
13
Summary

 External Environment important for all


organisations
 Political – World economy relies on
economical and political integration
 Technological – every changing and
unpredictable
 Environmental issues high on international
agenda

You might also like