MGHB02H3 Lecture Notes - Computer-Aided Design, Vertical Integration, Advanced Manufacturing
Document Summary
External factor events and conditions surrounding an organization that influence activities. Open systems (how organization described) systems that take inputs from the external environment, transform some of them back and send them back into the environment a output. Input include capital output service and product. Some input are transformed (raw material) and some assist in the transformation ( skilled craftspeople) Transformation processes may include physical ( manufacturing or surgery), intellectual ( teaching or programming) or emotional ( psychotherapy) E. g. take insurance information and transform it into insurance premiums. The value of the open systems concept is that it sensitizes us to the need for organizations to cope wit the demands of the environment on both the input and output side. Some coping involves adaptation to environmental demand and other on changing the environment. During downturn, increase competition for remaining customers. Some thrive under poor economy e. g. law firms that deal with unemployment.
