GROUP 17
Discuss The External Environmental Forces In Terms Of The Task Environment That Pressure And Influence Managers On An Ongoing Daily Basis
Characteristics of the Environment Composition of the Environment Business Environment Characteristics of the Environment Composition of the Environment
Components of the Task Environment
Business Environment Characteristics Factors that have the potential to influence a firms operations Characteristics Interrelatedness Environmental uncertainties Increasing instability Complexity of the environment
Composition of the Environment Internal environment Set of factors within a firm’s boundary and have influence on the firms operations External environment Set of factors outside a firm’s boundary and can affect the firms operations
External Environment Compositions General environment They are widely dispersed factors and indirectly affects the operations of a firm Task environment Embodies the closest elements that have direct influence on firms decision making
FORCES OF THE TASK ENVIRONMENT Competitors Individuals or firms who provide similar or same products or are in the same industry and compete for labor, customers, suppliers and others Customers Individuals or firms that patronize a firm’s products or services. They have different level of satisfaction and varying needs.
FORCES OF THE TASK ENVIRONMENT Employee Organizations Suppliers Individuals or firms that provide a firm with input to be converted into output Employee Organizations They request for employees better working conditions like employee’s job security Labor Market Context within which buyers and sellers of labor comes together to fix price for labor
FORCES OF THE TASK ENVIRONMENT Government Regulators Local Communities It’s where a firm is sited and operates. The firm operates within their rules and customs Government Regulators Include government agencies that regulate management activities Distributors Individuals or firms that make a firm’s product available to customers
FORCES OF THE TASK ENVIRONMENT Financial Institutions They provide the organization with capital and financial advices Mass Media Involves the press, radio and TV stations that can create good or bad of a firm’s product image Interest Groups They are organized groups with the aim or who attempt to influence a firm’s activities
SUMMARY To sum it up, the task environment embodies those elements of the external environment that are closest to the organization and directly influence and pressure the basic operations and performance of organizations. The impact of the forces of the task environment are felt without any intervening events or variables.