Organizational environments and cultures - Making sense of hanging environments
6 important questions on Organizational environments and cultures - Making sense of hanging environments
What are the characteristics of the economic influence?
2. Domestic economic indicators include national income, purchasing power, income distribution, inflation, and employment
3. International economic indicators include economic growth, exchange rates, interest rates, and labor costs in other countries.
4. Influences basic business decisions: Managers scan the environment by business confidence indices
What are the characteristics of social influence
2. Cultural characteristics such as changes in general behavior, attitudes, and beliefs: They affect the demand for a business's products.
What are the characteristics of the technological influence?
2. Technological changes creates opportunity, but also risks. (disruptive innovation).
3. Must be used effectively to improve products or decrease costs.
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What are the characteristics of environmental influence?
2. The environment is now seen as a major point of attention, with a focus on cleaning up, innovating, and sustainability.
What are the characteristics of the legal influence?
2. Managers must be aware of the laws, regulations, and potential lawsuits that could affect their businesses.
What are the general political trends?
2. Movements to left/right
3. Changes in political ideologies
4. Political stability in a certain country
5. Movement towards political integration (EU), or isolationism (Brexit) can have a significant impact on organizations.
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