1. Input - Output Model ENVIRONMENT INPUTS OUTPUTS TRANSFORMATION PROCESS
FEEDBACK

2. Inputs
People
Technology
Capital
Equipment
Materials
Information

3. TRANSFORMATION PROCESS2 1 4 3

4. Outputs
Goods
Services

5. Economic Political Technological Social-Cultural
The Organization
and its External
Environment
General / remote
environments
The General Environment
The general environment consists of the economic, political, social, and technological conditions that can affect the management of organizations. The extent of influence of the general environment is less direct than that of the specific environment but also difficult to predict. Some general environmental factors, such as a severe economic recession, can lead to far-reaching effects on the organization.
Economic
Political
Customer
Economic Conditions
Interest rates, inflation, changes in disposable income, stock market prices, and general business cycles all contribute to the general economic conditions. Recessions in one large industry can spread out to others as workers are laid off and consumers have less income to spend purchasing the products of other organizations.
Political Conditions
Political conditions include both the general stability of the countries in which the organization has operations and the attitudes that governments in those countries hold toward the role of business in their society.
Social Conditions
Each country and even area often has different social and cultural rules of conduct. Management must adapt its practices to the changing expectations of the society in which in operates. Areas of managerial decisions affected by changing social conditions includes not only the makeup of the products and services offered by the organization but its internal policies as well. In the United States, for example the changing demographics of the workforce are requiring organizations to recognize the needs of women and minority employees by adopting innovative management practices for to motivate and retain these important employee groups.
Technological Conditions
Innovations in technology are the most rapidly changing factor in the general environment. Technology dependent organizations can become obsolete almost overnight as innovations replace whole industries.
Organization
Labor
Market
Competitors
Suppliers
Technological
Social-Cultural

6. Economic Political Technological Social-Cultural
The Organization
and its External
Environment
The General Environment
The general environment consists of the economic, political, social, and technological conditions that can affect the management of organizations. The extent of influence of the general environment is less direct than that of the specific environment but also difficult to predict. Some general environmental factors, such as a severe economic recession, can lead to far-reaching effects on the organization.
Economic
Political
Customer
Economic Conditions
Interest rates, inflation, changes in disposable income, stock market prices, and general business cycles all contribute to the general economic conditions. Recessions in one large industry can spread out to others as workers are laid off and consumers have less income to spend purchasing the products of other organizations.
Political Conditions
Political conditions include both the general stability of the countries in which the organization has operations and the attitudes that governments in those countries hold toward the role of business in their society.
Social Conditions
Each country and even area often has different social and cultural rules of conduct. Management must adapt its practices to the changing expectations of the society in which in operates. Areas of managerial decisions affected by changing social conditions includes not only the makeup of the products and services offered by the organization but its internal policies as well. In the United States, for example the changing demographics of the workforce are requiring organizations to recognize the needs of women and minority employees by adopting innovative management practices for to motivate and retain these important employee groups.
Technological Conditions
Innovations in technology are the most rapidly changing factor in the general environment. Technology dependent organizations can become obsolete almost overnight as innovations replace whole industries.
Organization
Labor
Market
Competitors
Suppliers
Task
environments
Technological
Social-Cultural