MGHB02H3 Study Guide - Final Guide: Mass Production, Vertical Integration, Expert System
Document Summary
External environment events and conditions surrounding an organization that influence its activities. The general economy organizations that survive through selling products or services often suffer from an economic downturn and profit from an upturn. When a downturn occurs, competition for remaining customers increases and organizations might postpone needed capital improvements. Customers all organizations have potential customers for their products and services. Successful firms are highly sensitive to customer reactions. Suppliers organizations are dependent on the environment for supplies, which include labour, raw materials, equipment and component parts. Competitors environmental competitors vie for resources that include both customers and suppliers. Social/political factors organizations cannot ignore the social and political events that occur around them. Technology environment contains a variety of technologies that are useful for achieving organizational goals; interest groups parties or organizations other than direct competitors that have some vested interest in how an organization is managed.
