Module 2: Chapter 3 & 4

This refers to relationships between humans and their surrounding environment, including other living creatures, plants, air, and water.

Ecological Influences

This force influences business operations including such factors as: • Gross Domestic Product (GDP) & Recessions • Inflation Rates • Interest Rates • Exchange Rates • Other factors such as hikes in energy prices and health care costs and access to labor can also play a role.

Economic Forces

This refers to the monitoring of the organizations internal and external environments for early signs that a change may be needed to accommodate potential opportunity or threats, and to make adjustments, and to allow the company strengths to combat its weaknesses

Environmental Scanning

To reach to the forces of internal and external environment managers rely on

Environmental Scanning

This rate can be influenced by international agreements, the coordinated economic policies of governments, and international economic conditions

Exchange Rates

This refers to the factors that occur outside of the company that cause change inside organizations and are for the most part beyond the control of the company, customers, competition, economy, technology, political and social conditions

External Environment

Macroenvironmental forces means

External Environmental Forces

Ecological forces are don't ever intertwined with political-legal forces because governments frequently attempt to manage economic development or address ecological concerns with regulations.

False

Firms operating in multiple, distinct geographical markets can't be affected in different manners by external forces in each market.

False

Managers begins by analyzing the external environment by looking into inefficiency outside of the organization and will then look inside in the internal environment and things occurring independent of the organization

False

This rate refers to the value of a nation's annual total production of goods and services.

Gross Domestic Product

If this rate is high it will raise many of the costs of doing business, and if continued it will constrict the expansion plans of businesses and triggers governmental action designed to slow economic growth

Inflation Rates

This refers to the events, factors, people, systems, structures, conditions, and trends inside the organization that affect management, employees, and organizational culture

Internal Environment

What are the forces that drive organizational change?

Internal and external environments

What influences organization activities, decision, and employee behaviors and attitude?

Internal environment influences

Forces that originate outside of an organization and generally cannot be altered by actions of the organization. In other words, a firm may be influenced by changes within this element of its environment, but cannot itself influence the environment.

Macroenvironmental Forces or External Environmental Forces

Political and Legal Forces

Outcomes of changes in laws and regulations

Outcomes of elections, legislation, and judicial court decisions, governmental agency activity, as well as the decision rendered by various commissions and agencies at every level of government are considered to be components of

Political Legal Forces

When the U.S. Supreme Court ruled in 2007 that the Clean Air Act applies to car and truck carbon dioxide emissions, carmakers knew immediately that higher federal fuel economy standards were likely forthcoming. This is an example of what type of macroenvironmental forces.

Political Legal Forces

Macroenvironmental forces

Political-legal, Economic, Social, and Technological

What are the common external factors that influence organizations?

Resources

What does SWOT analysis stand for?

S: Strengths W: Weaknesses O: Opportunities T: Threats

What is the common type of environmental scan?

SWOT Analysis

What are the factors that are typically associated with the internal environment of the organization?

The companies mission statement, organizational culture, and style of leadership

Ecological influences are part of the economic environment because they can change cost structures in entire industries.

True

Environmental scans allow managers to use the knowledge gain during the scanning process to decide what strategic steps and changes the organization need to take to create or maintain competitive advantage

True

Macroenvironmental forces affect not only industries but also individual firms within industries.

True

Macroenvironmental forces are NOT assessed in terms of their direct effects on a particular firm, but on the entire industry.

True