General Environment

Economic forces

-‐ Affect the general health and wellbeing of the world ‐ Includes interest rates, inflation, unemployment and economic growth ‐ Low levels of unemployment = more money to spend in businesses - ‐ Worsening economic conditions = lay offs, cutting of resources

Global forces

-‐ Outcomes of changes in international relationships, changes in nation's economic, political and legal systems and changes in technology. ‐ Falling trade barriers - Created big opportunities for organisations in one country to sell goods and services other countries.

Technological forces

‐ Combination of skills and equipment that managers use in the design, production and distribution of goods and services ‐ Can make products outdated (e.g. typewriters) forcing managers to find new ways to satisfy customer needs

General Environment - Definition

‐ Includes the wide‐ranging economic, technological, socio-cultural, demographic, political and global forces that affect the organisation and its task environment.

Political and legal forces

‐ Outcomes of changes in laws and regulations - Eg. Deregulation of industries, privatisation of organisations

Demographic forces

‐ Outcomes of changes in or changing attitudes towards the characteristics of a population, such as age, ethnic origin, race, sexual orientation and social class. ‐ Ageing population & fewer children - how to source the people needed in the workplace in the coming decades ‐ Organisation need to fine ways to motivate and utilise the skills and knowledge of older employees

Sociocultural forces

‐ Pressures originating from the social structure of a country, society or from the national culture ‐ Social structure *The arrangement of relationships between individuals & groups in a society ‐ National structure *Set of values that a society considers important and the norms of behaviour that are approved or sanctioned in that society. ‐ Difference in cultures may dictate the methods managers need to use to motivate and lead employees