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.