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The Management Environment (components of external environment…
The Management Environment
external environment
factors
EX: Economic Component
interest rates
employment/ unemployment rates
inflation
disposable income levels
stock market fluctuations
business cycle stage
situations
forces
events outside the environment
components of external environment
political/ legal
demographics
baby bust(1978-1994)
baby bommers(1946-1964)
GenZ
in certain age can constrain decision
economic
growing income gap(economic inequality)
the sharing economy
put underutilized assets to good use
EX: snap goods
sociocultural
technological
global
why is External Environment important?
all theses components constrain managers' decision
managers fall to adapt to the "changing world"
performance are influenced by factors over which managers have little control
economy
customers
competitor's action
government
ways the external environment constrains managers
the environmental uncertainty
its impact on job and employment
various stakeholder relationship
the external environment affect(constrain) managers
technology
affect
inputs
labor
raw materials
outputs
goods
services
electronic replace human labor
online banking
social networks
more efficient and effective
changes how managers interact with employees
telecommuting
anywhere, anytime
flexible work arrangements
environment uncertainty
the degree of change
stable
predictable
similar
dynamic
unpredictable
continually changing
sophiscated
environment complexity
stakeholders
shareholders
can lead to desirable organizational outcomes
environmental changes
innovations
improve predictability
communities
unions
suppliers
employees
media
government
trade and industry associations
competitors
social and political action groups
customers
organizational culture
descriptive
shared
perceived
how does culture affect what managers do?
EX:Apache Corp(oil drilling business)
culture values
quick decision making
risk taking
constrains what they can do and cannot do and how they manage
managers and appropriated andexpected behaviors
EX: ready-aim fire
culture values
take actions
study and analyze before committing
managerial decisions affected by culture
leading
controlling
organizing
planning
different management
omnipotent view of management
managers directly response to an organizations's failure or success
symbolic vies of management
constrained by external environment