BUSINESS ENVIRONMENT

ELEMENTS OUTSIDE FIRM THAT HAVE IMPACT ON ORGANIZATION’S OPERATION ELEMENTS OUTSIDE FIRM THAT HAVE IMPACT ON ORGANIZATION’S OPERATION SORTS OF ENVIRONMENT: INTERORGANIZATIONAL, GENERAL, AND GLOBAL ENVIRONMENTS SORTS OF ENVIRONMENT: INTERORGANIZATIONAL, GENERAL, AND GLOBAL ENVIRONMENTS

INTERORGANIZATIONAL ENVIRONMENT OTHER FIRMS (ORGANIZATIONS) IN ENVIRONMENT THAT INTERACT WITH ORGANIZATION OTHER FIRMS (ORGANIZATIONS) IN ENVIRONMENT THAT INTERACT WITH ORGANIZATION FIRMS PROVIDE RAW MATERIAL, KNOWLEDGE, CAPITAL, EMPLOYEES, FACILITIES AND EQUIPMENT FIRMS PROVIDE RAW MATERIAL, KNOWLEDGE, CAPITAL, EMPLOYEES, FACILITIES AND EQUIPMENT

INTERORGANIZATIONAL NETWORK ORGANIZATION UNIONS NETWORK GOV. AGENCIES SUPLIERS SPECIAL INTERESTS COMPETITORS PARTNERS CUSTOMERS

GENERAL ENVIRONMENT GENERAL FORCES AT WORK IN AN ENVIRONMENT THAT HAVE A SIGNIFICANT EFFECT THROUGHOUT THE NETWORK GENERAL FORCES AT WORK IN AN ENVIRONMENT THAT HAVE A SIGNIFICANT EFFECT THROUGHOUT THE NETWORK KINDS OF GENERAL ENVIRONMENT: SOCIAL, CULTURAL, LEGAL, POLITICAL, ECONOMIC, TECHNOLOGICAL, PHYSICAL. KINDS OF GENERAL ENVIRONMENT: SOCIAL, CULTURAL, LEGAL, POLITICAL, ECONOMIC, TECHNOLOGICAL, PHYSICAL.

SOCIAL ENVIRONMENT CLASS STRUCTURE CLASS STRUCTURE DEMOGRAPHICS DEMOGRAPHICS MOBILITY PATTERNS MOBILITY PATTERNS LIFE STYLES LIFE STYLES EDUCATIONAL SYSTEMS EDUCATIONAL SYSTEMS RELIGIOUS PRACTICES RELIGIOUS PRACTICES

CULTURAL ENVIRONMENT HISTORY HISTORY TRADITIONS TRADITIONS VALUE OF THE SOCIETY VALUE OF THE SOCIETY

LEGAL SECTOR CONSTITUTIONS AND LAWS OF THE NATION IN WHICH ORGANIZATION RUNS ITS BUSINESS CONSTITUTIONS AND LAWS OF THE NATION IN WHICH ORGANIZATION RUNS ITS BUSINESS ANTI-MONOPOLY LAW, TAX LAW, INVESTMENT LAW, FOREIGN INVESTMENT LAW ANTI-MONOPOLY LAW, TAX LAW, INVESTMENT LAW, FOREIGN INVESTMENT LAW

POLITICAL SECTORS DISTRIBUTION AND CONCENTRATION OF POWER AND THE NATURE OF POLITICAL SYSTEMS (DEMOCRATIC VS AUTHOCRATIC) DISTRIBUTION AND CONCENTRATION OF POWER AND THE NATURE OF POLITICAL SYSTEMS (DEMOCRATIC VS AUTHOCRATIC)

ECONOMIC SECTOR ELEMENTS: LABOR MARKETS, FINANCIAL MARKETS, MARKETS FOR GOODS AND SERVICES. ELEMENTS: LABOR MARKETS, FINANCIAL MARKETS, MARKETS FOR GOODS AND SERVICES. ANALYSIS ELEMENTS: ECONOMIC PLANNING SYSTEMS, FISCAL POLICIES, CONSUMPTION PATTERNS, PATERN OF CAPITAL INVESTMENT, BANKING SYSTEM. ANALYSIS ELEMENTS: ECONOMIC PLANNING SYSTEMS, FISCAL POLICIES, CONSUMPTION PATTERNS, PATERN OF CAPITAL INVESTMENT, BANKING SYSTEM.

ECONOMIC CRITERIA: ECONOMIC CRITERIA: BALANCE OF PAYMENT, ECONOMIC ALLIANCES WITH OTHER COUNTRIES, TRADE AGREEMENTS, PRICE CONTROLS, ACCESS TO RAW MATERIAL MARKETS, INTEREST AND INFLATION RATES, UNEMPLOYMENT RATES, INVESTMENT RISK BALANCE OF PAYMENT, ECONOMIC ALLIANCES WITH OTHER COUNTRIES, TRADE AGREEMENTS, PRICE CONTROLS, ACCESS TO RAW MATERIAL MARKETS, INTEREST AND INFLATION RATES, UNEMPLOYMENT RATES, INVESTMENT RISK

TECHNOLOGICAL SECTORS KNOWLEDGE AND INFORMATION ORGANIZATION NEEDS TO CREATE SCIENTIFIC DEVELOPMENT AND USE IT TO PRODUCE GOODS AND SERVICES KNOWLEDGE AND INFORMATION ORGANIZATION NEEDS TO CREATE SCIENTIFIC DEVELOPMENT AND USE IT TO PRODUCE GOODS AND SERVICES

PHYSICAL SECTORS NATURE AND NATURAL RESOURCES: COAL AND OIL, HARBOR, INFRASTRUCTURE (ROUTE, RAILWAYS, AIRPORT, ETC.) NATURE AND NATURAL RESOURCES: COAL AND OIL, HARBOR, INFRASTRUCTURE (ROUTE, RAILWAYS, AIRPORT, ETC.)

INTERNATIONAL ENVIRONMENT ASPECTS OF ENVIRONMENT THAT CROSS NATIONAL BOUNDARIES. ASPECTS OF ENVIRONMENT THAT CROSS NATIONAL BOUNDARIES. ELEMENTS: UNITED NATIONS, WTO, IMF, ELEMENTS: UNITED NATIONS, WTO, IMF,

THEORIES OF ENVIRONMENT – ORGANIZATION RELATIONS CONTINGENCY THEORY CONTINGENCY THEORY RESOURCE DEPENDENCY THEORY RESOURCE DEPENDENCY THEORY POPULATION ECOLOGY THEORY POPULATION ECOLOGY THEORY INSTITUTIONAL THEORY INSTITUTIONAL THEORY

CONTINGENCY THEORY (BURNS AND STALKER) ORGANIZATION DEPEND ON THE CONDITION OF ENVIRONMENT (STABLE VS DYNAMIC) ORGANIZATION DEPEND ON THE CONDITION OF ENVIRONMENT (STABLE VS DYNAMIC) STABLE ENVIRONMENT DEMANDS MECHANISTIC STRUCTURE, DYNAMIC ENVIRONMENT NEEDS ORGANIC STRUCTURE STABLE ENVIRONMENT DEMANDS MECHANISTIC STRUCTURE, DYNAMIC ENVIRONMENT NEEDS ORGANIC STRUCTURE CHARACTERISTICS OF ORGANIC STRUCTURE: LESS SPECIALIZATION AND FORMALIZAATION, IMPROVE LATERAL COMMUNICATION CHARACTERISTICS OF ORGANIC STRUCTURE: LESS SPECIALIZATION AND FORMALIZAATION, IMPROVE LATERAL COMMUNICATION

RESOURCE DEPENDENCY THEORY (PFEFFER AND SALANCIK) ENVIRONMENT CONTROL ORGANIZATION BECAUSE IT PROVIDES RESOURCES BY WHICH ORGANIZATION OPERATE AND SURVIVE ENVIRONMENT CONTROL ORGANIZATION BECAUSE IT PROVIDES RESOURCES BY WHICH ORGANIZATION OPERATE AND SURVIVE CRITERIA OF RESOURCES: CRITICALITY AND SCARCITY CRITERIA OF RESOURCES: CRITICALITY AND SCARCITY

CRITICALITY: ESTIMATE OF THE IMPORTANCE OF A PARTICULAR RESOURCE CRITICALITY: ESTIMATE OF THE IMPORTANCE OF A PARTICULAR RESOURCE SCARCITY: ESTIMATE OF THE AVAILABILITY OF THE RESOURCE WITHIN THE ENVIRONMENT SCARCITY: ESTIMATE OF THE AVAILABILITY OF THE RESOURCE WITHIN THE ENVIRONMENT

POPULATION ECOLOGY THEORY (HANNAN, FREEMAN, ALDRICH) ENVIRONMENT HAS POWER TO SELECT ORGANIZATIONS FROM A GROUP OF COMPETITORS WHICH BEST SERVE NEEDS OF THE ENVIRONMENT ENVIRONMENT HAS POWER TO SELECT ORGANIZATIONS FROM A GROUP OF COMPETITORS WHICH BEST SERVE NEEDS OF THE ENVIRONMENT ONLY ORGANIZATIONS THAT CAN PROVIDE ENVIRONMENT’S NEEDS CAN SURVIVE ONLY ORGANIZATIONS THAT CAN PROVIDE ENVIRONMENT’S NEEDS CAN SURVIVE

INSTITUTIONAL THEORY (SELZNICK) ENVIRONMENTS’ DEMANDS ON ORGANIZATIONS: ENVIRONMENTS’ DEMANDS ON ORGANIZATIONS: –TECHNICAL AND ECONOMIC DEMANDS, REQUIRE ORGANIZATIONS TO PRODUCE AND EXCHANGE GOODS AND SERVICES THROUGH MARKET

–SOCIAL AND CULTURAL DEMANDS, REQUIRE ORGANIZATIONS TO PLAY PARTICULAR ROLES IN SOCIETY AND ESTABLISH AND MAINTAIN CERTAIN OUTWARD APPEARANCES INSTITUTIONAL PRESSURES INSTITUTIONAL PRESSURES –LEGAL AND POLITICAL INFLUENCES (COERCIVE INSTITUTIONAL PRESSURE) –CULTURAL INFLUENCES (NORMATIVE INSTITUTIONAL PRESSURE) –SOCIAL INFLUENCES (MIMETIC INSTITUTIONAL PRESSURE)

BUFFERING AND BOUNDARY SPANNING BUFFERING, PREVENTING EFFORTS FROM INTERRUPTED OPERATION DUE TO MATERIAL, LABOR, OR CAPITAL SHORTAGE BUFFERING, PREVENTING EFFORTS FROM INTERRUPTED OPERATION DUE TO MATERIAL, LABOR, OR CAPITAL SHORTAGE BOUNDARY SPANNING, ACTIVITIES TO MONITOR ENVIRONMENT AND TO FIND INFORMATION RELEVANT TO ORGANIZATION’S NEEDS BOUNDARY SPANNING, ACTIVITIES TO MONITOR ENVIRONMENT AND TO FIND INFORMATION RELEVANT TO ORGANIZATION’S NEEDS