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Environment Lecture 2. Environment definition Organizations are open systems with input and output. Environment is all that surrounds the organization.

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Presentation on theme: "Environment Lecture 2. Environment definition Organizations are open systems with input and output. Environment is all that surrounds the organization."— Presentation transcript:

1 Environment Lecture 2

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

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

4 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.

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

6 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.

7 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

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

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


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