Chapter 2 - Environmental Constraints on Managers

The external environment refers to forces - the organization that may affect its -

outside, performance

external environment has three components

1. specific environment

2. general environment

3. global environment

specific environment includes external forces at the - level that are directly relevant to the - of an organization’s -

these forces have a - and - impact on manager’s decisions and actions

micro, achievement, goals

direct, immediate

specific environment

stakeholders are groups that are affected by the organization’s - and -

stakeholders include - and - groups

decisions, actions

internal, external

primary stakeholders engage in - with organizations

they include (four groups)

direct transactions

employees, customers, suppliers, shareholders

general environment represents the - level

it includes the broad political, economic, sociocultural, technological, environmental, and legal conditions

macro

general environment - the organization

• changes in general environment usually do not have as - an impact as changes in the specific environment do

may affect

• large

general environment

PESTEL stands for

political, economic, socio-cultural, technological, environmental, legal

in the global environment, managers must deal with cultural, economic, and political differences

- can suddenly appear at any time, from any place on the globe

managers who make no attempt to learn and adapt to changes in the global environment end up -, rather than -

when trade flows freely, countries benefit from (two things)

new competitors

reacting, innovating

economic growth and productivity gains

PESTEL - global environment

managers in a global organization may encounter different (three factors)

• there is greater uncertainty due to - or -

• different laws and political systems

• - economy vs - economy

• currency exchange rates, inflation rates

• tax policies

political, legal, and economic factors

• political instability, government interference

• market, planned

what are different types of global organizations?

1. Multinational Corporation

2. Multidomestic Corporation

3. Transnational or Borderless organizations

4. global corporation