COMMERCE 1BA3 Lecture 27: Chapter 15-1
Document Summary
Events and conditions surrounding an organization that influences (pressure) its activities: how do they put pressure on my company, how the environment dictates certain strategic choices. Examples big e pressures: 9/11, sars. Increased competition: major/minor change in legislation, loss of a critical customer, arrival of a new supplier. Organizations can be described as open systems that take inputs from the external environment, transform some of them, and send them back into the environment as outputs: open. How to put the input and turn it into the output. Difference between closed and open systems: closed. Believe they are completely self-contained, whatever they do they are unaffected. Environmental sources that put pressure on my company: the economy recession or slump in market. Downside: customers changing customer needs. Change my strategy: suppliers shortage in critical supplier. Pressure on pricing: competitors increased number of competitors. Social increased single parents, increased structure of in house daycare.