Bus Org A 04

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The business organization and its environment Module 04-The business organization and its environment

1

Stakeholders • Groups or individuals directly or indirectly affected by an organization’s pursuit of its goals. • There are internal and external stakeholders. Module 04-The business organization and its environment

2

Internal stakeholders Employees • individuals responsible for work in an organization Shareholders and Board of Directors • owners • representatives of the firm’s various owners; voted to make decisions for the company Module 04-The business organization and its environment

3

External stakeholders Customers • exchange resources, usually in the form of money, for an organization’s products and services.

Module 04-The business organization and its environment

4

External stakeholders Suppliers • provide the input/resources needed by the firm to produce its output.

Module 04-The business organization and its environment

5

External stakeholders Competitors • companies that offer similar or alternative products or services

Module 04-The business organization and its environment

6

External stakeholders Financial institutions • organizations that provide or lend funds needed by business for their operations or capital investments

Module 04-The business organization and its environment

7

External stakeholders Government • aids and protects industries and the national economy • provides infrastructure, utilities, and security Special Interest Groups • use the political process to advance their position on particular issues Module 04-The business organization and its environment

8

External stakeholders The Media • provide general public with information, opinion, and entertainment on relevant issues Labor Unions • voice of the workers to top management • organized within the company or outside the organization Module 04-The business organization and its environment

9

The STEP Environment On national and international levels the organization is affected by these variables:

Social Technological Economic Political Module 04-The business organization and its environment

10

Soci al Envi ronment • demographics • lifestyle changes • social/cultural values Examples: • The rise of the “yuppy” • Overpopulation • Strong catholic influences Module 04-The business organization and its environment

11

Technol ogi cal Envi ronment • Advances in basic sciences • New developments in products, processes, and materials Examples: • the Internet • Biotechnology (genetics) • cellular mobile technology services Module 04-The business organization and its environment

12

Eco nomi c Envi ronment • monetary and fiscal policies of national and foreign governments • wages and employment Examples: • GNP/GDP • Liberalization trends • purchasing power of consumers Module 04-The business organization and its environment

13

Poli ti cal Env iron ment • laws, regulations, and policies • political processes Examples: • Elections • GATT and GATS • Zoning regulations Module 04-The business organization and its environment

14

Bus ines s envi ronment Technologic al

Social competitors the media labor unions financial institutions

employees

The Firm shareholders and board of directors

Economi Module 04-The business organization and its environment

customers suppliers government special interest groups

Political 15

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