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CHÁPTER 3: EXTERNAL ENVIRONMENT, consumers, Technological:Drone delivery…
CHÁPTER 3: EXTERNAL ENVIRONMENT
TECHNOLOGICAL
scientific
technological advances
Technology drives competition and helps innovative companies gain market share >< Companies that fail to adapt may decline or become obsolete.
SOCIACUTURAL DIMENSION
population characteristics
norms
customs
value
These factors shape future workforce and consumers -> Understanding them helps organizations achieve long-term success
General Environment
Technological
AI & Automation
Digital Transformation
Innovation
Natural
Climate Change
Natural Resources
Sustainability
Soclocultural
Values and Beliefs
Lifestyle
Economic ( Market)
Inflation
Economic growth
Interest rates
Economic ( Financial)
Icome levels
Employment
Purchasing power
Lega/Political
Law and regulations
Government policies
Political stability
International
Globalization
International trade
Global competition
ECONOMIC
Characteristics
Represents the general economic health
Operating in a complex global environment
creates enormous uncertainty for managers.
General economic health
Consumer purchasing power
the unemployment rate
interest rates
Recent trends
Frequency of mergers and acquisitions
small business sector vitality
THE LEGAL-POLITICAL LENS
Government mandates and organized efforts define the
business landscape
.
Federal
State
Local
The International Lens
New Customers
Access to international markets and buyers.
New Supplies
Access to materials and resources from abroad.
New competitions
Foreign companies enter domestic markets.
Global Trends
Influences social, technological, and economic trends.
THE NATURAL LENS
Influence on managers comes through secondary proxy pressure.
The natural dimension includes all elements that occur naturally on
Earth, including plants, animals, rocks, and resources such as air, water,
and climate.
Protection of the natural environment is emerging as a critical policy focus around the world
✓Governments are increasingly under pressure to explain their performance on
pollution control and natural resource management.
✓The natural dimension has no voice of its own. Influence on managers to meet
needs in the natural environment may come from other sectors.
The Domino Effect: A Living Ecosystem
A shift in just one dimension rarely stays isolated—it triggers a cascade of changes across the entire business ecosystem.
consumers
Policy forcus
Pollution control
Resource managment
Technological:Drone delivery is invented.
Economic:Delivery costs drop rapidly
Legal-Political:<br>Airspace rules are heavily rewritten.
The technological dimension of the general environment
Organized effort designed to influence and shape company behavior
The legal–political dimension includes government regulations at the
local, state, and federal levels, as well as political activities designed
to influence company behavior.