THE EXTERNAL ENVIRONMENT

INTERNAL STAKEHOLDERS, EXTERNAL STAKEHOLDERS

2 categories of stakeholders

Indirect-action elements

Affect the climate in which the organization operates and have the potential for becoming direct-action element.

INTERTYPE COMPETITION

Arises between different types of organizations

1. CLIENTS/CUSTOMERS, 2. COMPETITORS, 3. SUPPLIERS, 4. FINANCIAL INSTITUTIONS, 5. GOVERNMENT AGENCIES, 6. LABOR SUPPLY, 7. SHAREHOLDER & BOARDS OF DIRECTORS

Direct-action components of the external environment

STAKE HOLDERS

Groups or individuals who are affected directly by the organization's pursuit of its goal

1. TECHNOLOGICAL VARIABLES, 2. ECONOMIC VARIABLES, 3. SOCIOCULTURAL VARIABLES, 4. POLITICAL, LEGAL, AND REGULATORY, 5. INTERNATIONAL

Indirect-action components of the external environment

INTRATYPE COMPETITION

Occurs between institutions engaged in the same activity

INTERNAL STAKEHOLDERS

Owners, employees, stockholders

FINANCIAL INSTITUTIONS

These are such as commercial banks, investment bank, and insurance companies that the organizations depend on to maintain and expand their activity.

EXTERNAL STAKEHOLDERS

Union, suppliers, competitors, public interest associations, protest groups, & government agencies

EXTERNAL ENVIRONMENT

consists of elements outside an organization that are relevant to its operations.

Indirect-action elements

include the technology, economy, and politics in the society.

Direct Action

includes consumers, government agencies, competitors, labor unions, suppliers & financial institutions.