ADMS 2400 Study Guide - Final Guide: Social Forces, Major Force, Product Differentiation
12 Aug 2020
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Document Summary
Individual organizations typically have only a marginal impact on the broad environment. The broad environment consists of sociocultural forces, competitive forces, technological trends, and political/legal forces. Awareness of and compliance with the attitudes of society can help an organization avoid problems associated with a bad ethical reputation. Exchange rates can influence the ability of a firm profitably to remove profits from foreign countries. Technology is human knowledge about products and services and the ways they are made and delivered. The task environment consists of stakeholders with whom organizations interact on a fairly regular basis. Industries may be defined as a group of organizations that compete directly with one another to win orders or sales in the marketplace. The three major forces that drive industry competition and profitability are government regulators, direct competitors and social forces. The power of a single customer is greater when there are many customers than when there are few.
