Internal & External Environment Flashcards
Internal influences on a business
- Competitors
- Managers
- Customers
- Corporate Culture
External influences on a business
- Social
- Economic
- Technological
- Ecological
- Political
External: Cultural/Social
People or groups in our society and the way they interact and behave towards each other
E.g
- Ageing Australian Population
- Multicultural society/ Equal Opportunity
- Increased working hours of some sections of the workforce
- Increase in awareness of and concern for health and fitness
- Casualisation of the workforce (uniforms)
External: Technological Factors
Major developments in technology and advanced communications technologies
E.g
- Dramatic effect on the way an organisation operates internally
- Aims to improve productivity
- Brings changes to work practices - can create anxiety for staff
Internal: Corporate Culture
Describes the shared values and beliefs of the people in the organisation.
E.g
- Management Styles
- Attitude by Staff to Management and vice versa
- How staff interact
- Budget (allow money for lunch/special occasions)
- Customer relations
- Dress Codes
Real Corporate Culture
- Look at the management culture of the organisation
- Attitudes of management to staff (vice versa)
- Relations among staff (interactions)
- Customer relaitons
- Style of dress and language used
Corporate Culture
Used to describe the shared values and beliefs of the people in an organisation which substantially influences members’ behaviour.
- Corporate Culture can be difficult to change because it’s largely based on people’s values and beliefs
- Linked to ethical behaviour
Corporate Culture developed by:
- Management recognising and rewarding
- Management providing an example of the culture in action
- Management communicating the desired culture by written codes of ethics or distributing in a magazine.
- Ethical recruiting and selection policies
- Training
Ethics
Are the moral standards and principles that guide people’s decisions and actions. Integrity is often used to describe this personal quality.
- Business ethics depend on an organisation’s culture or corporate culture
Advantages of an ethical socially responsible organisation (or manager)
- The organisation’s product
- Creation of employment
- Creation of export revenue
- Development and transfer of new technology
- Outcomes in the natural environment
- Income distribution otucomes
Social Responsibility
The idea that businesses should balance profit-making activities with activities that benefit society; involves developing businesses with a positive relationship to the society in which they operate.
Corporate Social Responsibility
A corporation’s initiatives to assess and take responsibility for the company’s effects on environment and social wellbeing.
- Abbreviated as “CSR”
Business Ethics
The basic concepts and fundamental principles of decent human conduct and for the natural environment.
External Impacts: Political and Legal
Activities and decisions of the three level of government.
- Healthy & Safety, Human Rights, Fair Competition, Anti-discrimination, Building regulations etc…
How do laws and regulations affect business (or manager)?
Staff are able to follow the regulations of Health and Safety, less accidents, compare products and sales.
