MGMT 4P90 Chapter Notes - Chapter 3: Gross Domestic Product, Pest Analysis, Consumer Activism

• School: Brock University
• Department: Business - Management
• Course: MGMT 4P90
• Professor: Trish Ruebottom

Document Summary

Environment consists of the set of external conditions and forces that have the potential to influence the organization. General environment (or macroenvironment) includes overall trends and events in society such as social trends, technological trends, demographics, and economic conditions. Industry (or competitive environment) consists of multiple organizations that collectively compete with one another by providing similar goods, services, or both. A few organizations wield such power and influence that they can shape some elements of the general environment. Subway"s move to cut salt in its sandwiches, for example, may lead other fast- food firms to revisit the amount of salt contained in their products. Environment is important because (cid:862)no organization is self-sufficient(cid:863). An organization needs to take in resources such as labor, money, and raw materials from outside its boundaries. An organization cannot survive without the support of its environment. Opportunities e(cid:448)e(cid:374)ts a(cid:374)d tre(cid:374)ds that (cid:272)reate (cid:272)ha(cid:374)(cid:272)es to i(cid:373)pro(cid:448)e a(cid:374) orga(cid:374)izatio(cid:374)"s performance level.