Business and its Environment part 2 Flashcards
These do not affect organization directly instead they affect the technological economic social cultural political legal and international variables
Indirect action elements
Patronage is very vital to the existence of the business firm the manager must continuously strive to keep old customers and attract new ones
Customers
This directly influenced the organization this include the consumers competitors labor unions suppliers financial institutions and government agencies they are often referred to as stakeholders of the organization
Direct action element
Where there is only a single producer or seller
Monopoly
When there are only a few producers or sellers of similar products
Oligopoly
When there are many producers or sellers of similar products
Pure competition
Business firms achieve their objectives through a combination of activities first and foremost is the transformation of production imports like raw materials energy services equipment and labor into usable products and services.
Suppliers
The target market share can be successfully achieved through careful analysis of
in determining the appropriate market strategy the manager will have to consider not only the target consumers but also the
Competitors
Pepsi and coke
Direct competitors
Pepsi and nescafe
Indirect competitors
In many ways business organizations are affected by change in government policies
Government agencies
The services of managers and employees are indispensable requirement of business operations
Labor supply
Business firms are concerned with maintaining and expanding their operation in either case the company will need funds
Financial institutions
What are the 6 direct action components
Customers
suppliers
competitors
labor supply
financial institution
government agencies
Has become widely recognized as an important ingredient in the success of the business firms and monitors who does not consider the ___ in his strategy faces the risk of losing out to competitors.
Technological variables
These consist of laws and regulations promulgated and implemented at the local national and international levels
Political legal variables
Business organization can only flourish if they consider societies customs and values in the planning and implementation of their activities
socio cultural variables
This concern will touch the health of the economy in terms of inflation income levels gross domestic product employment and job outlook
Economic variables
These elements include changes occurring in various parts of the world which may affect business organizations in various ways and degrees
International variables
when significant number of environmental processes that are active business are changing
Dynamic
Few forces in the environment are changing to affect the business
static
This refers to a number of different factors in the environment such as information capital material people and other organizations
Complexity
These are the factors in the external environment change from time to time. For instance incoming levels and the number of qualified teachers may increase or decrease after a few years
Rate of change in this factors
Appreciate that is non-routine and changing. characterized by decentralized authority fewer rules and procedures less precise division of Labor wider spans of control more personal means of coordination
Organic design
