Organizational Context II Flashcards
Describe ‘External Environment’
Complex, Volatile, Interactive
Worthington&Britton: External Inputs into Business Organizations?
Land & Premises,
Materials,
Labour,
Technology
Worthington&Britton: Outputs of Business Organizations into Consumption?
Goods,
Services,
Ideas,
Information
What does PESTLE stand for?
Political Economic Social Technological Legal Environment
What are the Two Levels of the External Environment?
General Environment (PESTLE) & Immediate (Competitive) Environment
External Environment > What is the General Environment?
PESTLE
External Environment > What factors are in the Immediate Environment which will affect performance and decision making?
Suppliers, Competitiors, Labour Market, Customers, Financial Instituitions, Regulators
Give example for PES (Political, Economic, Social) in PESTLE
P= Democratic, Labour Laws, Trade Regulations E= Inflation, National Debt, Recession S= Population, Social Class
Give example for TLE (Technological, Legal, Environment) in PESTLE
T= IT Development, Patent Protection L= Health & Safety Laws, Advertising Laws E= Stakeholders, Weather, Energy & Waste Disposal Cost
Immediate (Competitive) Environment -> What is meant by Direct Competitors?
Satisfying the customers needs directly (Dell rival HP)
Immediate (Competitive) Environment -> What is meant by Indirect Competitors?
Satisfying customers underlying needs with alternative product (Overseas Holiday rivals Spa due to Relaxation Needs)
What is Organizational Agility?
Responding to dynamic nature of environment,
Organizations ability to perceive & respond to changes
What is Performance Management?
Multidimensional Concept that can refer to:
- Efficiency,
- Effectiveness,
- Customer Satisfaction,
- Strategic Performance,
- Financial Performance
- …
What is the purpose of Performance Management?
To determine if a business plan is achieved
