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University of Ottawa
ADM ADM 1300
The organizational environment - oct 14

The organizational environment - oct 14 - T he... 

The organizational environment Why Analyze? -Organizations do not operate in a vacuum; they operate in an open system -organizations operate in a pluralistic environment -these are largely uncontrollable factors ; external forces The general environment -The economic environment (interest rates, unemployment rates, trade balances, dollar strength, market demand (economic and behavioural)) -Gross income minus taxes = disposable income minus essentials = discretionary income (lots of people don’t have anything left) -The political/legal environment - The social environment (philosophies, attitudes, and values, Changing demographics, increasing urbanization, education) -The technological environment 

Unformatted text preview: -The ethical environment ( pressure groups, values; morals)-The international environment (increasing globalization (trade) , foreign direct investment, expansion of transnational companies) Task environment-forces from suppliers, distributors, customers, and competeters 1) suppliers: provide organization with inputs 2) competitors: other organizations that produce similar goods 3) distributors: organizations that help others to sell goods-some distributors like wal mart have strong barganining power- they can threaten not to carry your good 4) customers: People who buy the goods So what does the manager have to do? scan and monitor...


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