An Organization’s Environment
(a) Competitors, industry size and
(g) Recession, unemployment rate, competitiveness, related issues inflation rate, rate of investment,
(j)
(a)
(b) Suppliers, economics, growth
International
Industry manufacturers, real
(h) City, state, federal laws
Sector
Sector estate, services and regulations, taxes,
(i)
(b)
(c) Labor market, services, court system,
Sociocultural
DOMAIN
Raw Materials
Sector
employment agencies, political processes
Sector
universities, training
(i) Age, values, beliefs, schools, employees education, religion,
(c)
(h) in other companies, work ethic, consumer
Human
Government
Resources
unionization and green
Sector
ORGANIZATION
Sector
(d) Stock markets, movements banks, savings and
(j) Competition from
(g)
(d) loans, private and acquisition by
Economic
Financial
Conditions
Resources investors foreign firms,
Sector
Sector
(e) Customers, clients, entry into overseas
(e)
(f)
Market
potential users of products markets, foreign
Technology
Sector
Sector
and services customs, regulations,
(f) Techniques of production, science, exchange rates computers, information technology
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© 2004
4-2
Chapter Four
The External Environment
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© 2004
Differences in Goals and
Orientations Among Organizational
Departments
Organizational Departments
Differentiate to Meet Needs of
Sub-environments
President
Characteristic
Sales
Division
Scientific
Sub-environment
Manufacturing
Sub-environment
Market
Sub-environment
Labor
Professional associations Raw Suppliers materials Production equipment Customers
Advertising
Competitors agencies
Distribution
system
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© 2004
4-3
Environmental Uncertainty and
Organizational Integrators
Industry:
Plastics
Foods
Container
Environmental
Uncertainty
High
Moderate
Low
Departmental