MGHB02H3 Chapter 15: Chapter 15 _ Environment, Strategy, and Technology.pdf
Document Summary
External environment: events and conditions surrounding an organization that influence its activities. E. g. , sars outbreak, the recent economic crisis, and the opec oil embargo of 1973. Open systems: systems that take inputs from the external environment, transform some of them, and send them back into the environment as outputs. It sensitizes us to the need for organizations to cope with the demands of the environment on both the input side and the output side. Some coping may be oriented towards changing the environment. The organization as an open system (exhibit 15. 1) Downturn competition for customers increases, organizations might postpone needed capital improvements, high unemployment. Must be sensitive to changes in customer demands. Successful companies devote considerable energy to monitoring the activities of competitors. Changes in public attitudes find expression in law through the political process, thus, organizations must cope with a series of legal regulations that prescribe fair employment practices, proper competitive activities, product safety, clients" rights, and environmental protectionism.
