Lesson 3 Org&man

Industries
ENVIRONMENTAL FORCES,
ENVIRONMENTAL SCANNING
AND BUSINESS
ENVIRONMENT
DEFINITION OF TERMS
• Environmental scanning – seeking for and sorting
Our Company
through data about the environment
• Inflation – a period of above normal general price
increases, as reflected in the consumer and
wholesale price indexes
• Inflation rate – rate reflected during a period of
above normal general price increases
• Interest rates – the total amount that a borrower
must pay annually to the lender and above the total
amount borrowed
• Changing options – the consumers change in
preference of goods and services offered
• Gross National Product (GNP) – total domestic and
foreign output claimed by the residents of a country
• Gross Domestic Product (GDP) – total final output of
goods and services produced by the country’s
economy, within the country’s territory
Environmental Forces
and Environmental
Scanning
Business environment refers to the factors or
elements affecting a business organization.
External Business Environment Internal Business Environment
includes the factors and elements outside the
organization which may affect its performance, refers to the factors or elements
either positively or negatively while the Internal within the organization which
Business Environment refers to the factors or
elements within the organization which may also
may also affect its performance,
affect its performance, either positively or either positively or negatively.
negatively.
COMPONENTS OF THE EXTERNAL
BUSINESS ENVIRONMENT
Systematic monitoring of the major external forces
influencing organizations is necessary to improve the
management of companies.
GENERAL BUSINESS
ENVIRONMENT
• Economic
• Sociocultural
• Politico-legal
• Demographic
• Technological
• World and Ecological
situations
Types of Scrum Meeting
Factors of Politico-
Sociocultural Demographic World and
Economic situations legal
situations Ecological
situations situations
situations
Inflation Customer’s national or gender, age, related to the

Rates of interest increasing number of
changing education level,
Changing options in local laws, global competitors and
values and income, number
stock markets international of family markets, as well as the
People’s spending preferences
habit laws, and members, nature and conditions
rules and geographic of the changing natural
regulations origin, environment
Rules of Scrum Management
Stakeholders
are parties likely to be affected by
the activities of the organization,
while customers are those who
patronize the organization’s
products and services. Increasing
customer sophistication makes it
necessary for managers of
organizations make crucial decisions
regarding the development of
products with higher value and the
improvement of their services to
meet their patrons’ increasing
demands
Suppliers
• those who ensure the
organization’s
continuous flow of
needed and reasonably
priced inputs or
materials required for
producing their goods
and rendering their
services. Inputs
mentioned also include
financial and labor
supply.
Pressure groups
• are special-interest groups that
try to exert influence on the
organization’s decisions or
actions. For instance, pressure
from the Food and Drug
Administration on some
department stores and drug
stores led them to stop selling
beauty products containing lead
and to stop ordering or importing
such products from their
suppliers.
investors or owners
• provide the company with
the financial support it
needs. The company, of
course, cannot exist
without them; thus, they
greatly influence
organizational
management.
Employees
• comprised of those
who work for
another or for an
employer in
exchange of
salaries/wages or
other considerations.
Employees execute
the company’s
stability
Components of the Business Environment
The organization’s internal
environment must also be
subjected to internal analyses.
Internal strengths and
weaknesses, opportunities,
and threats (SWOT) with
regards to its resources
(financial, physical,
mechanical, technological, and
human resources), research
and development endeavors,
production of goods,
procurement of supplies
(materials, inputs, and
finance), and products and
services must all be
considered prior to
organizational planning.
Components of Environmental
Scanning : Developing a Competitive
Mindset, Considering Future Business
Scenarios, Business Prediction,
SWOT Analysis, and Benchmarking
COMPETITIVE MINDSET
Considering Future Business Scenarios
https://www.bankmycell.com/blog/how-many-iphones-have-been-sold/
BUSINESS PREDICTION
BENCHMARKING
The Local and International
Business Environment of the
Firm
• Understanding the local and international business environment of the firm
requires managers of organizations to sharpen their cultural intelligence.
• Cultural intelligence is an individual’s ability to favorably receive and adjust to
an unfamiliar way of doing things. This will enable them to develop their ability
to accept and adapt to different cultures, both local and international, that
may affect the organization to which they belong
• Anthropologist Edward T. Hall, as cited y Schermerhorn (2008), noted that the
way people approach and deal with time varies across cultures. Monochromic
cultures refer to cultures wherein people tend to do one thing at a time; also,
these cultures emphasize punctuality and sticking to set rules
Five Cultural Dimension
by Geert Hofstede
Power Distance - the degree to which a society

accepts or rejects the unequal distribution of power
among people in organizations and the institutions
of society.
Uncertainty Avoidance – the degree to which
society is uncomfortable with risk, change, and
situational uncertainty. Managers in the US are risk
takers. Filipinos are seguristas that are afraid of
taking risks within business endeavors in the
market.
by Geert Hofstede
Individualism-Collectivism – the degree to which a

society emphasizes individual accomplishments
versus collective accomplishments. Individualistic
cultures like those of the US and Australia are
characterized as “I” and “me” cultures where
employees prefer to work alone without help from
others. Mexico, Thailand, and the Philippines exhibit
collectivism or preference for group or team work.
Masculinity-Femininity – the degree to which a
society values assertiveness and feelings of material
success versus concern for relationships.
by Geert Hofstede
Time Orientation – the degree to which a society

emphasizes short-term thinking versus greater
concern for the future or long-term thinking. The
Americans, who are risk-takers, prefer short-term
thinking. On the other hand, Filipinos and the
Japanese, who are not risk-takers, are long-term
thinkers.
PEST Analysis
• PEST Analysis is a strategic framework used
to evaluate the external environment for a
business by breaking down opportunities
and threats into Political, Economic, Social,
and Technological factors. PEST analysis can
be an effective framework to use in
Corporate Strategy Planning, useful in
identifying the pros and cons of a Business
Strategy.
Political Factors
When looking at political factors, you are
looking at how government policy and actions
may affect the economy, as well as the specific
industry the business operates in. These include
the following:
➢ Tax Policy
➢ Labor Law
➢ Environmental law
➢ Trade Restrictions
➢ Tariffs
Economic Factors
Economic Factors take into account the various
aspects of the economy, and how the outlook
on each area could impact your business. These
economic indicators are usually measured and
reported by Central Banks and other
Government Agencies.
➢ Economic Growth rates
➢ Interest Rates
➢ Exchange Rates
➢ Inflation
Technological Factors are linked to innovation in the
industry, as well as innovation within the overall
economy. Not being up to date on the latest trends of
a particular industry can be extremely harmful to
operations. Technological Factors include the
following:
➢ Research & Development Activity
➢ Automation
➢ Technological Incentives
➢ The rate of change in technology
Arowwai
Industries
Thank You
For Your Attention
Visit Our Website

www.reallygreatsite.com

Lesson 3 Org&man

Uploaded by

Copyright:

Available Formats

Lesson 3 Org&man

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lesson 3 Org&man

Uploaded by

Copyright:

Available Formats

Industries

Inflation Customer’s national or gender, age, related to the

Power Distance - the degree to which a society

Individualism-Collectivism – the degree to which a

Time Orientation – the degree to which a society

Visit Our Website

You might also like