MODULE 1: Topic 2 - Organisation and Management Environments

External environment

Reflects an open systems view of organisations including all elements outside the organisation that can affect it

General environment

The outer layer of the environment that has an indirect impact on the organisation

Task environment

The layer of the external environment that directly influences an organisation’s operations and performance

International dimension

Events in foreign countries, global competition and opportunities requiring a global mindset

Technological dimension

Advances in technology and scientific knowledge that influence industries

Socio-cultural dimension

Demographics, norms, values and customs of the population affecting organisations

Economic dimension

Overall economic health including spending power, unemployment and interest rates

Legal-political dimension

Government regulations, laws and pressure groups influencing organisational behaviour

Natural environment

Natural resources and environmental factors including sustainability pressures and regulations

Customers

Individuals or groups who purchase and use goods or services affecting organisational success

Competitors

Organisations offering similar goods or services to the same customers

Suppliers

Individuals or groups providing inputs to the organisation forming part of the supply chain

Supply chain

The network of organisations involved in producing and delivering a product or service

Labour market

The pool of people available for employment

Environmental uncertainty

Situation where managers lack complete information about the environment and future events

Adapting to the environment

Adjusting organisational strategies and operations to match environmental changes

Influencing the environment

Taking actions to shape the environment to suit organisational needs

Boundary-spanning

Activities that link the organisation with external elements

Forecasting and planning

Predicting future conditions and preparing strategies accordingly

Inter-organisational partnerships

Collaborations between organisations to achieve mutual goals

Mergers and joint ventures

Combining organisations or forming alliances to share resources and risks

Advertising and public relations

Efforts to shape public perception and influence the environment

Political activity

Actions taken to influence government decisions and policies

Trade associations

Industry groups that represent organisational interests

Adaptability culture

Culture that emphasises flexibility, innovation and quick responses to change

Achievement culture

Results-oriented culture focused on competitiveness and performance

Involvement culture

Culture that values employee participation, cooperation and a family-like environment

Consistency culture

Culture that emphasises stability, rules and orderly processes

Cultural leadership

Defining and reinforcing organisational values and mission through leadership actions

Internal environment

Elements within the organisation including culture, technology, structure and facilities

Organisational culture

Shared values, beliefs and behaviours that shape how members act

Visible culture

Observable aspects such as symbols, dress codes and ceremonies

Invisible culture

Underlying beliefs and assumptions that guide behaviour

Production technology

Tools and processes used to create products or services

Organisational structure

The formal arrangement of roles, responsibilities and relationships

Physical facilities

The buildings and physical resources used by the organisation

Borderless world

A global environment where geographic boundaries have little impact on business

Globalisation

Integration of production and markets across countries

Domestic stage

Organisation operates only within its home country

International stage

Organisation begins exporting or operating abroad

Multinational stage

Organisation operates in multiple countries with some local adaptation

Global stage

Organisation operates worldwide with integrated operations

Global mindset

Ability to understand and operate across different cultures and environments

Cultural intelligence

Ability to adapt and work effectively in different cultural contexts

International business importance

Global operations allow cost efficiency but may shift jobs and create local concerns