The Specific Environment
The specific environment: The part of the external environment that is directly relevant to the
achievement of an organizations goals. It includes those external forces that have a direct and
immediate impact on manager’s decisions and actions. The main specific environments
include customers, suppliers, competitors, and public pressure groups.
• Public pressure group: Groups that attempt to influence the actions of organizations.
Social Cultural conditions: managers must adapt their practices to the changing expectations
of the societies in which they operate. As societal values, customs, and tastes change,
mangers must also change.
How Organizations go Global
One way managers use to get into a global market without investing a lot of money is called
Global sourcing: Also called global outsourcing, refers to the purchasing of materials or labour
from around the world, wherever it is cheapest. The goal of this strategy is to take advantage
of lower costs in order to be more competitive.
• Importing and exporting: An organization can go global by exporting its products to
other countries, by making products at home and selling them abroad, or through importing
which consists of selling products at home that are produced abroad.
o Exporting: An approach to going global that involves making products at home
and selling them abroad.
o Importing: An approach to going global that involves acquiring products made
abroad and selling them at home.
• Licensing & franchising: some businesses use franchising or licensing in the early
stages of doing international business. Both licensing and franchising involve one organization
giving another the right to use its brand name, technology, or product specifications in return
for a lump sum payment or fee usually based on sales. o Licensing: An approach to going global primarily used by manufacturing
organizations to make or sell another company’s products where one m