MGMT 325 Lecture Notes - Lecture 2: Domestic Partnership In The United States, Federal Aviation Administration
4 Apr 2016
School
Department
Course
Professor
Document Summary
Organizations that are affected by, and that affect, their environment. Inputs: goods and services organizations take in and use to create products or services. Outputs: the products and services organizations create. External environment: all relevant forces outside a firm"s boundaries, such as competitors, customers, the government, and the economy. Competitive environment: the immediate environment surrounding a firm; includes suppliers, customers, rivals, and the like. Macroenvironment: the general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations. The economic environment dramatically affects managers" ability to function effectively and influences their strategic choices. Interest and inflation rates affect the availability and cost of capital, growth opportunities, prices, costs, and consumer demand for products. In publicly held companies, managers may feel required to meet wall street"s earnings expectations. Managers may focus on short-term results at the expense of long-term success. Some managers may be tempted to engage in unethical or unlawful behavior that misleads investors.
