MGHB02H3 Chapter 15: Chapter 15 - Environment, Strategy and Technology
11 Dec 2011
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External environment - events and conditions surrounding an organization that influence its activities i. e. opec oil embargo, 911 terrorist attack, sars outbreak, recession. The general economy when an economic downturn occurs competition for reaming customers increase, org might postpone needed capital improvements. Customers successful firms are highly sensitive to customer reactions, org change in response to customer demands. Suppliers supply shortages can cause severe difficulties, now companies work closely with suppliers on the basis of quality and reliable delivery. Competitors successful org devote considerable energy to monitoring the activities of competitors, org in hypercompetitive environments become flexible to respond quickly to changes. Social/political factors changes in public attitudes toward ethnic diversity, proper age for retirement or proper role of big business affects them. Technology refers to the ways of doing things. Interest groups parties or organizations other than direct competitors that have some vested interest in how an organization is managed.
