COMMERCE 1AA3 Chapter Notes - Chapter 15: Corporate Social Responsibility, Word Processor, Meddle
22 Apr 2015
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External environment- events and conditions surrounding an organization that influence its activities. Examples- oil prices go down, cost of transportation increases, global recession. Open systems- systems that take inputs form the external environment, transform some of them and send them back into the environment as outputs. Inputs include capital, energy, materials, information, technology and people. Inputs are transformed (i. e. raw materials to finished products), while other inputs (i. e. skilled crafts people) assist in the transformation process. The transformation process may be physical (manufacturing or surgery), intellectual (teaching or programming) or even emotional (psychotherapy) The general economy- organizations that survive through selling products or services often suffered from an economic downturn and profit from an upturn. When a downturn occurs, competition for remaining customers and increases and organizations might postpone needed capital improvements. Customers- all organizations have potential customers for their products and services.
