COMMERCE 1BA3 Chapter Notes - Chapter 15: Corporate Social Responsibility, Joint Venture, Market Environment
12 Oct 2016
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Document Summary
External environment of organizations: events and conditions surrounding the organization that influence its abilities. Resource dependence: dependency of organizations on environmental inputs such as capital, raw materials, and human resources. Open systems: systems that take inputs from the external environment, transform some of them, and send them back into the environment as outputs. Transformation: some inputs are transformed (i. e. raw materials) while other inputs assist in the transformation process (i. e. skilled craftspeople). Transformation may be physical (i. e. manufacturing), intellectual (i. e. (i. e. manufacturing), intellectual (i. e. teaching), or emotional (psychotherapy) Value of open systems: sensitizes us to the need for organizations to cope with the demands of the environment on both the input side and the output side (adaptation to demands, or changing the environment). Components of the external environment: general economy: organizations suffer from economic downturn (competition for remaining customers, postpone needed capital improvements) and profit from upturn.
