Orgman Lesson 3 Flashcards
Economic Instability
problem
Impact
Fluctuations in the economy such as inflation, supply chain costs, etc
Can lead to reduced in demands, operational costs, challenges in finance
technological changes
problems
impacts
rapid advancements in technology require businesses to stay up-to-date with new tools
result inefficiencies, reduced competitiveness
Competition
problem
Impact
Pressure business to maintain or lower prices
erodes margins, reduced market share
regulatory and compliance issues
problems
impact
must navigate complex regulatory environments and comply with various laws and regulations
non-compliance can lead to legal penalties, fines, and damage to the company’s reputation
Human resource challenges
problem
impact
attracting, retaining and managing talent is a significant challenge. issues include high turnover rates, skill shortages, and employee engagement
HR can affect productivity, increase requirement, and training costs. Impact overall organizational performance
Encompasses all external and internal factors that affect its operations, strategies, and performance
Environment of the firm
Direct impact on business operations
ex: Employees, board of directors, and managers
Internal environment
Indirect but significant influence on operations of the business. factors that cannot be controlled by the firm
external environment
what is micro environment
- operating environment
- consists of the customer, suppliers, regulatory, agencies and competitor
- direct relevance to the business operations but are uncontrollable to a certain extent
what is macro environment
- General Environment
- Consist of economic, political, social, legal, and technical environment
- beyond the control of the firm but are important determinants of success
The actual monitoring and evaluation of information from external and internal environment of the business organization
Environmental scanning
what are the three modes of environmental scanning
AD HOC
REGULAR
CONTINUOUS
Not often done applicable only during a crisis situation. Determine whether a problem is either internal or external
AD HOC
Usually done at least once a year or at regular interval
Regular
continuous collection of data on a broad range of environmental factor
continuous
SWOT defenition
strengths
weaknesses
opportunities
threats
PEST defenition
political
economic
social
technological
what is strength
Company’s attributes that give a competitive edge over others
Good performance and a positive reputation in the business scene
Market leader, good brand image, quality and products and services, good reputation
what is weaknesses
attribute that needs to change or improve
lack of access to technology
what is opportunities
event that can give a positive impact to the company
what is threats
external factors which may negatively impact the company
SWOT ANALYSIS
Harmful
W T
SWOT ANALYSIS
Helpful
S O
SWOT analysis
internal origin
S W
