BA 5201 Organization and Management Organizational environment

1. BA 5201Organization and ManagementOrganizational environment Instructor: Çağrı Topal

2. Organizational environment • Things outside of the organization’s boundaries • Source of opportunities and threats • Local, regional, national, and global levels • Task environment: the specific parts of the environment that mostly affect a given organization

3. Environmental sectors • Industry • Culture • Law and politics • Economy • Technology • Human resources • Physical resources • Consumers and clients

4. Industry sector • Competitors, substitute products, the ease or difficulty of entering and leaving the industry, and relations between buyers and suppliers • Threats from new entrants or barriers to entry • Substitutability threat • Competitive rivalry

5. Cultural sector • Values, norms, traditions, and artifacts of a society • Guide for consumer behaviors • Especially important with the increasing globalization of business and exposition to different nations and cultures

6. Legal and political sector • Government, political, and legal processes • Taxation and regulation • Government spending • Employment laws and minimum wage levels • Foreign policy

7. Economic sector • Market, planned, and mixed economic systems • Allocation of resources and distribution of goods and services • General economic conditions • The most dynamic sector

8. Technology sector • Specific skills, knowledge, tools, and abilities necessary to complete a job at the individual, group, and organizational • Whether work is done by individuals or groups and how individuals or groups are organized • Source of technological innovations

9. Human resources sector • Source of human inputs • Levels of education and training, wage and benefit standards, presence or absence of unions, and worker attitudes • Trends • Part-time, temporary, or contract workers • Educated and flexible,workforce • Different cultural backgrounds

10. Physical resources sector • Physical resources • Raw materials • Concentration of resources and suppliers’ bargaining power • Physical conditionssuch as climate, geography, and location

11. Consumer and client sector • The main group for which organizations exist • Characteristics of consumers and clients • Very large or very few clients or many suppliers and buyers’ bargaining power

12. Complexity, turbulence, munificence • Environmental complexity: the number and relatedness of environmental elements that affect an organization • Environmental turbulence: the change and dynamism in the sectors of an organization’s environment • Environmental munificence: the abundance or scarcity of resources, and the capacity of the environment to support organizations