Environment Lecture 2

Environment definition Organizations are open systems with input and output. Environment is all that surrounds the organization. There are two main types of environment: -External -Internal

Group task Describe the input for a hotel and production company. Do they differ? If yes, in what way?

External environment All forces that are outside the organization and out of control. It includes factors which affect directly the organization and indirect factors. Indirect forces are known as PEST: -Political forces; -Economic forces; -Social -Technological forces.

Direct forces influencing the organization Customers Competition; Suppliers; Owners; Unions.

Group task You are going to open a new restaurant with typical Bulgarian cuisine in Varna. Explore the forces which will affect your activity and in what way.

Internal environment. All forces that are inside the organization and it can control them Internal environment includes: -Strategy; -Company goals; -Personnel; -Organizational culture; -Task -Production facilities; -Organizational structure; -Finance -Marketing

Group task Read the case about Agropolychim and evaluate the external and internal environment of the organization.

Conclusion Present a final report with the strengths and capabilities of the company you have examined carefully.